Point-of-care diagnostic solutions manufacturer Quidel (QDEL) was recently selected by the State of Delaware as the COVID-19 testing partner for its schools.
Delaware is planning to reopen its K-12 schools this fall. Per the program, Quidel will handle staffing of test locations, sample collection, sample testing, and reporting of the results to the Delaware Division of Public Health (DPH). The results will also be shared with the concerned schools. Moreover, Quidel’s rapid antigen tests will be used to test students and faculty who choose to go for the COVID-19 screening program. (See Quidel stock chart on TipRanks)
The program will initially be conducted in five schools for students enrolled in summer school. The program will then be extended to participants of all K-12 schools in Delaware once classrooms reopen at the start of fall.
John Carney, Delaware Governor, said, “There is no greater need or responsibility than the safe reopening of our K-12 classrooms to all Delaware children.”
He added, “Regular COVID-19 testing is an important part of our comprehensive mitigation strategy to get all students back to in-person learning while reassuring parents that we are committed to keeping their children safe while at school.”
Douglas Bryant, president and CEO of Quidel, noted, “Working with the State of Delaware, Quidel is taking a truly market-leading step…by introducing a complete testing-as-a-service model with a goal of detecting COVID-19 infections early and protect children, their classmates, teachers and families from potential spread. Every day that we shut coronavirus down will be a day that we keep classrooms open.”
Interestingly, earlier this month, in a press release, the FDA flagged the recall of Quidel’s Lyra-SARS-CoV-2 assay, citing considerable risk of false negative results for patients with higher viral load. However, it was found that the recall was made back in April, and a rectification of the issue was also made in the same month by Quidel.
Following this mistimed announcement by the FDA, Piper Sandler analyst Steven Mah reiterated a Buy rating on Quidel with a price target of $140, implying a 3.7% upside potential to current levels.
Mah says that the “curiously timed” press release, which is most likely a result of “backlog-issues or oversight,” is not expected to affect the COVID-impact guidance of $20-$25 million per month, which Quidel recently issued.
Consensus among analysts is a Moderate Buy based on 4 Buys and 1 Sell. The average Quidel price target of $146.33 implies 8.4% upside potential to current levels.
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