In December 2021, Ortho and Quidel announced the planned acquisition of Ortho at a then price of $24.68 per share in a combination of cash and stock, which was a 25% premium over Ortho's closing price on the day prior to the announcement. Notably, gross margin for the year was 50.7%, 'a 210 basis point increase, mostly due to currency translation, volume and lower manufacturing costs.' Total revenue for 2021 increased by 14% in constant currency versus 2020.
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This reduced its Q4 installed base growth from a projected 5% to 3%.Īs to its financial results, Q4 recurring revenue grew by 6% as a result of strength in its clinical chemistry, immunoassay and donor screening segments. However, the firm has seen supply chain disruptions resulting in shortages of certain components and inflation in freight and logistics aspects, which has 'pushed out delivery of our instruments to some customers.' The firm saw growth in its Clinical Labs and Transfusion Medicine segments.īy region, OCDX produced growth in all of its major regions, with The Americas growing 18% and Greater China growing at 12% year-over-year In its last earnings call, covering Q4 2021's results, management highlighted its lack of heavy reliance on COVID testing and therefore comparatively low 'headwinds' as a result of reduced COVID assays in its broad portfolio of tests. S&P 500 Index's rise of 9.4 percent, as the chart below indicates:īelow is a table of relevant capitalization and valuation figures for the company:Īs a reference, a relevant partial public comparable would be Bio-Rad Laboratories ( BIO) shown below is a comparison of their primary valuation metrics: In the past 12 months, OCDX's stock price has risen 4.31 percent vs. ( Source data for above GAAP financial charts)
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Operating income by quarter has grown only slightly in recent quarters:ĥ-Quarter Operating Income (Seeking Alpha and The Author)Įarnings per share (Diluted) has unevenly trended lower in recent quarters:ĥ-Quarter Earnings Per Share (Seeking Alpha and The Author) Gross profit by quarter has followed a similar trajectory as topline revenue:ĥ-Quarter Gross Profit (Seeking Alpha and The Author) Topline revenue by quarter has largely flat-lined over the past five quarters:ĥ-Quarter Total Revenue (Seeking Alpha and The Author) Major competitive or other industry participants in various business areas of the firm include:
ORTHO CLINICAL DIAGNOSTICS DRIVERS
The main drivers for this expected growth are a rise in chronic and infectious diseases combined with a growing elderly population worldwide that is more susceptible to immunological disorders from weakening immune systems.Īlso, an increased focus on personalized medicines as well as continued innovation by market participants will increase demand over the longer term. This represents a forecast CAGR of 4.8% from 2020 to 2027. OCDX's Market & CompetitionĪccording to a 2020 market research report by Allied Market Research, the global market for in vitro diagnostics was valued at an estimated $67.1 billion in 2019 and is expected to exceed $91 billion by 2027. The company pursues customers among clinical laboratories and said it sells to more than 70% of U.S. Transfusion Medicine - Donor Screening services before blood transfusions Management is headed by Chairman and CEO, Chris Smith, who has been with the firm since 2019 and was previously CEO of Cochlear Limited and previously held senior roles in a number of healthcare firms.īelow is a brief overview video of the firm's Covid-19 antibody tests:Ĭlinical Laboratories - Chemistry via in-vitro diagnostics
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Raritan, New Jersey-based Ortho Clinical was founded to develop a suite of services for clinical laboratories in hospitals in the U.S. Given these uncertainties, my outlook on OCDX at around $17.20 is a Hold. With the acquisition deal potentially on approval hold and Quidel's sharp stock price drop, the near-term future for OCDX is highly uncertain. The firm provides diagnostics services primarily to hospital labs in the U.S. Ortho Clinical Diagnostics ( OCDX) went public in January 2021, raising approximately $1.3 billion in gross proceeds from an IPO that was priced at $17.00 per share. Gorodenkoff/iStock via Getty Images A Quick Take On Ortho Clinical Diagnostics Holdings