Why is this biotech company selling its San Diego manufacturing facility?

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It’s part of QuidelOrtho’s cost-saving strategy, which included a 7 percent workforce reduction this year.

QuidelOrtho in Sorrento Valley on Tuesday, July 23, 2024 in San Diego, CA. San Diego diagnostic company, QuidelOrtho, will sell its Sorrento Mesa manufacturing facility as it commits to further slashing operating expenses.

The local site being put up for sale is at 10165 McKellar Court in Sorrento Mesa, off of Pacific Center Boulevard and next to a cluster of Qualcomm offices. It’s a roughly 72,000 square foot industrial building that Quidel purchased in 1999, according to public records. Joseph Busky, QuidelOrtho’s chief financial officer, said during Wednesday’s earnings call that the sale of these properties is expected to be complete by year end and “will generate cash and decrease ongoing operating costs.”

For diagnostic health care companies like QuidelOrtho, there’s the added financial pressure of declining sales and revenue from COVID-19 related products. Founded in 1979, QuidelOrtho also produces tools for laboratories and tests that detect illnesses such as influenza and strep throat.

 

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