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QuidelOrtho: Highly Levered With Questionable Growth

The article on Seeking Alpha discusses QuidelOrtho Corporation, highlighting its financial and operational challenges. QuidelOrtho, formed by the merger of Quidel and Ortho Clinical Diagnostics, has experienced a significant drop in its stock price, down 50% from its peak. The company's growth is described as questionable due to several factors: a high debt load with a net debt to EBITDA ratio of 4.5x, which is considered risky especially in a rising interest rate environment; a heavy reliance on respiratory products like the QuickVue test, which saw a surge in demand during the peak of the global health crisis but now faces declining sales; and a lack of clear growth drivers outside of these respiratory products. The article also notes that while QuidelOrtho has a diversified product portfolio, the sustainability of its growth and profitability is uncertain due to competition, potential reimbursement issues, and the need for continuous innovation in diagnostics. The author expresses skepticism about the company's ability to manage its debt and achieve consistent growth, suggesting that investors should be cautious.

Read the Full Seeking Alpha Article at [ https://seekingalpha.com/article/4740289-quidelortho-highly-levered-with-questionable-growth ]