QUIDEL : ANNOUNCES AGREEMENT WITH BECKMAN COULTER THAT TERMINATES ONGOING LITIGATION AND TRANSITIONS BNP BUSINESS TO BECKMAN COULTER (Form 8-K)
07/26/2021 | 08:48am EDT
QUIDEL ANNOUNCES AGREEMENT WITH BECKMAN COULTER THAT TERMINATES ONGOING LITIGATION AND TRANSITIONS BNP BUSINESS TO BECKMAN COULTER
Settlement Agreement ends litigation that began in November 2017, following Quidel's acquisition of the BNP Business from Alere, Inc. ('Alere')
Quidel to receive cash payments between $70 million to $75 million per year through 2029
Arrangement is expected to be EPS and Cash Flow neutral to the existing supply agreement through 2029
Further enables Quidel's strategic focus on growing its core business
SAN DIEGO-(BUSINESS WIRE) - July 26, 2021 - Quidel Corporation (NASDAQ: QDEL) ('Quidel'), a provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, today announced its entry into agreements with Beckman Coulter resolving the ongoing litigation with Beckman Coulter and providing for the transition of the BNP Business to Beckman Coulter. Under these agreements, Beckman Coulter will pay Quidel cash payments of between $70 million and $75 million per year through 2029.
'We are pleased to announce this agreement as this is a major step forward for both Quidel and Beckman Coulter, while supporting the healthcare customers we serve,' said Douglas Bryant, president and CEO of Quidel Corporation. 'The transactions resolve ongoing litigation that began shortly after Quidel purchased the BNP Business from Alere in October 2017. Entry into the agreements enable us to focus on expanding our core businesses and executing on our longer-term strategy while also creating a stable cash flow stream for the remainder of the term of the existing BNP supply agreement.'
'For Quidel, the mission of democratizing the benefits of diagnostic testing for infectious disease, heart health and other conditions at diverse points-of-care is our main priority and expected to continue to drive growth for our business.'
As consideration for the arrangements, including Quidel's continued supply to Beckman Coulter of the Quidel antibody used in the manufacture of the BNP assay, during each of calendar years 2022 through and including 2029, Quidel will receive a minimum payment of $70 million (with amounts of $17.5 million payable quarterly), and a maximum payment of $75 million, with the additional $5 million
dependent on sales volume of Beckman Coulter assays. Such minimum and maximum payments will be pro-rated for 2021, based on the period commencing on the date of the initial commercial transition to Beckman Coulter, through December 31, 2021. The initial commercial transition, including in the US, is expected to be completed by late August 2021.
Pursuant to a Master Agreement, in connection with the transactions, on a country by country basis, Quidel will discontinue offering the Quidel BNP assay and Beckman Coulter will offer its own branded BNP assay to the market. Prior to Beckman Coulter introducing its own branded product to the market, in certain countries Quidel will grant Beckman Coulter exclusive rights to distribute the Quidel branded BNP Assay. The commercial transition in all countries is expected to be completed before the end of 2021.
Quidel purchased the BNP Business from Alere in connection with its acquisition by Abbott Laboratories in 2017. Under an existing BNP Supply Agreement, Quidel provides Beckman Coulter with antibodies and certain other components, and Beckman Coulter acts as Quidel's contract manufacturer for the BNP assay, which runs exclusively on Beckman Coulter analyzers. The transition under the Master Agreement provides stability to Quidel as a result of the minimum payment arrangement through 2029, while providing Beckman Coulter customers an uninterrupted supply of BNP assays.
Concurrent with entering into the Master Agreement, Quidel and Beckman Coulter entered in a Settlement Agreement to resolve all disputes relating to the existing BNP Supply Agreement, among other matters. Under that agreement, within 5 business days of signing, Beckman Coulter will dismiss with prejudice the complaint against Quidel that was filed in the Superior Court for the County of San Diego, California.
About Quidel Corporation
Quidel Corporation (Nasdaq: QDEL) is a leading manufacturer of diagnostic solutions at the point of care, delivering a continuum of rapid testing technologies that further improve the quality of health care throughout the globe. An innovator for over 40 years in the medical device industry, Quidel pioneered the first FDA-clearedpoint-of-care test for influenza in 1999 and was the first to market a rapid SARS-CoV-2 antigen test in the U.S. Under trusted brand names Sofia® Solana®, Lyra®, Triage® and QuickVue®, Quidel's comprehensive product portfolio includes tests for a wide range of infectious diseases, cardiac and autoimmune biomarkers, as well as a host of products to detect COVID-19. With products made in America, Quidel's mission is to provide patients with immediate and frequent access to highly accurate, affordable testing for the good of our families, our communities and the world. For more information about Quidel, visit quidel.com.
View our story told by our people at www.quidel.com/ourstory
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