SAN DIEGO--(BUSINESS WIRE)--Quidel Corporation (NASDAQ: QDEL - News) today announced a strategic corporate restructuring and work force reduction in order to gain operational efficiencies and reduce costs. The reduction in force involves approximately 10 percent of the work force, or 31 employees from all areas of the business.
In connection with the restructuring, the company is refining its approach to business development activities and, among other changes, has therefore eliminated two related senior level positions. Quidel expects to incur a restructuring charge in the first quarter of 2009 for both personnel and non-personnel related costs and will provide the details of the restructuring charge when the company releases 2009 first quarter results.
Among other cost cutting measures, Quidel has eliminated its annual cash incentive program for 2009 and taken action to reduce certain discretionary spending for the remainder of the year.
“Quidel is taking a number of significant steps designed to reduce costs and retain our solid financial position,” said Douglas Bryant, president and chief executive officer of Quidel Corporation. “These streamlining measures are intended to improve the performance of our business as we focus on building our portfolio of rapid diagnostic tests and remain flexible to seize opportunities to further grow our point-of-care business. Our departing employees’ dedication supported Quidel’s significant progress and we are grateful for this.”
Chief Technology Officer to Retire
Unrelated to the restructuring, Thomas Foley, Ph.D. will retire as chief technology officer effective May 31, 2009, after overseeing technology development for five years. Dr. Foley will continue as an employee through December 31, 2009 and will serve as a special advisor to the company during this time and in support of Quidel’s product development initiatives. Dr. Foley’s career of more than 35 years includes leading the research and development divisions of several diagnostics and life sciences instrumentation companies.
“During his career, Tom has been a strong leader and passionate advocate for improving healthcare decisions through the use of clinical diagnostics,” said Mr. Bryant. “Tom played an important role in the growth and success of our company, and my colleagues and I sincerely appreciate his contributions.”
About Quidel Corporation
Quidel Corporation serves to enhance the health and well being of people around the globe through the discovery, development, manufacturing and marketing of rapid diagnostic solutions at the point of care (POC) in infectious diseases and reproductive health. Marketed under the leading brand name of QuickVue®, Quidel’s portfolio of products currently includes tests that aid in the diagnosis of several disease or condition states, including influenza, respiratory syncytial virus, Fecal Occult Blood, Strep A, pregnancy, bacterial vaginosis, H. pylori and Chlamydia. Quidel’s products are sold to healthcare professionals with a focus on the physician office lab and acute care markets through leading medical distribution partners on a worldwide basis. Quidel’s Specialty Products Group (SPG) develops research products in the fields of oncology and bone health with potential future point-of-care applications. By building value in rapid diagnostic tests, Quidel provides leadership to the industry and among healthcare professionals allowing for the movement of patient testing out of the central laboratory setting and into the physician office, urgent care and other outpatient settings where rapid testing and treatment have an impact on clinical outcomes and provide an economic benefit. For more information, visit www.quidel.com, www.colorectal-test.com, www.rsvtesting.com or www.flutest.com.
This press release contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties. Many possible events or factors could affect our future financial results and performance, such that our actual results and performance may differ materially from those that may be described or implied in the forward-looking statements. As such, no forward-looking statement can be guaranteed. Differences in actual results and performance may arise as a result of a number of factors including, without limitation, seasonality, the timing of onset, length and severity of cold and flu seasons, the level of success in executing our strategic initiatives, uncertainty surrounding the detection of novel influenza viruses involving human specimens, adverse changes in the competitive and economic conditions in domestic and international markets, actions of our major distributors, technological changes and uncertainty with research and technology development, including any future molecular-based technology, the reimbursement system currently in place and future changes to that system, manufacturing and production delays or difficulties, adverse actions or delays in product reviews by the U.S. Food and Drug Administration, intellectual property, product liability, environmental or other litigation, potential required patent license fee payments not currently reflected in our costs, potential inadequacy of booked reserves and possible impairment of goodwill, and lower-than-anticipated sales or market penetration of our new products. Forward-looking statements typically are identified by the use of terms such as “may,” “will,” “should,” “might,” “expect,” “anticipate,” “estimate,” and similar words, although some forward-looking statements are expressed differently. The risks described under “Risk Factors” in reports and registration statements that we file with the SEC from time to time should be carefully considered. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date of this press release. We undertake no obligation to publicly release the results of any revision or update of the forward-looking statements, except as required by law.
Contact:
Quidel Corporation John M. Radak, Chief Financial Officer 858-646-8032 or
Porter Novelli Life Sciences Parag Dave 619-849-5378 pdave@pnlifesciences.com
