Activist Jana Partners built position in QuidelOrtho in first quarter, sources say (updated)
14/05/2024 21:47
(Updates with stock price in third paragraph)
By Svea Herbst-Bayliss
May 14 (Reuters) - Activist investor Jana Partners built
a new stake in U.S. diagnostics company QuidelOrtho QDEL.O
during the first quarter, sources familiar with the hedge fund's
position told Reuters.
It is unclear whether the hedge fund will seek changes at
the company, which makes the popular QuickVue COVID-19 test for
home use, and it could not be determined how large Jana's stake
is.
The company's stock price, which had already been trading up
roughly 1%, extended gains to roughly 10% before wiping away
some of the increase. Trading closed at $44.18, up 4.92%.
A representative for Jana declined to comment and a
representative for QuidelOrtho did not respond to a request for
comment.
By building the position however, the hedge fund is
signaling its interest in the company and that it has already
committed significant resources to what could become an activist
campaign.
The stake could be revealed publicly when Jana makes its 13F
filing, which requires fund managers to detail their ownership
in publicly traded U.S. companies for a given three-month
period.
QuidelOrtho currently has a market valuation of roughly $2.8
billion and its stock price has tumbled more than 50% in the
last 52 weeks. Since January the stock price has dropped 44%.
The San Diego-headquartered company fired Chief Executive
Officer Douglas Bryant, who had led the company for roughly 15
years, in February after fourth quarter earnings and revenue
fell, in part because COVID testing had dropped off. This month
it appointed Brian Blaser as president and CEO.
Jana has a 23-year track record of investing in companies,
including Frontier Communications FYBR.O , which recently
launched a formal strategic review following pressure and
Freshpet FRPT.O , which has generated a return of approximately
300% in the two years since Jana began engaging with the
company.
Before that, Jana pushed for changes at companies such as
Whole Foods Market, which sold itself to Amazon.com Inc
(AMZN.O).
(Reporting by Svea Herbst-Bayliss; Editing by Josie Kao)
((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))