Quidel is one of the most pure Covid testing plays on our list. Over 70% of their income in recent quarters has come from Covid testing. Notable aspects are the absence of debt on their books and the approval of six testing devices having received EUA from the FDA since April of 2020. Other companies, like Sorrento, have been unable to muster a single American EUA over the same period. This number of of EUA’s certainly gives Quidel first mover advantage in some areas. The risk of this company is due to the single leg of Covid testing upon which they stand. When Covid testing was the focus in 2020 the shares shot up to $280 but as the focus under president Biden has been for million of vaccinations, the shares have falling dramatically, trading around $110 in the late spring of 2021. The company has admitting being limited by manufacturing capacity, with orders exceeding their ability to deliver. They also made a decision to dedicate their capacity to a Flu/Covid combo test, as the diseases present similar symptoms in the early stages. Unfortunately for the company, the Flu season of 2020 was very weak and the demand for their combo test was lower than expected. As the northern hemisphere approaches the Flu season in the fall of 2021, Quidel may again see an uptick in demand for testing. A large part of the demand will be dictated by corporate and government policies and Quidel’s ability to sell internationally.
