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Quidel Corporation Announces Sale/Leaseback of its San Diego Headquarters
SAN DIEGO, Dec. 22 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) announced today the sale of its San Diego headquarters facility for $15 million. Quidel will lease the 73,000 square-foot facility for a period of fifteen years, with the option to extend the lease for two additional five year periods.
"The cash generated from selling the building will be utilized for strategic corporate projects to achieve our long-term objectives," said Charles J. Cashion, Quidel senior vice president, corporate operations and chief financial officer. "This is a financial transaction aimed at reducing our company's debt overall, and more specifically, the line of credit we established when we acquired Metra Biosystems earlier this year."
The sale, which will net the company approximately $7 million, was an all cash transaction. In addition, Quidel remains a part owner in the facility as a limited partner in the partnership that acquired the building. "The structure of this deal not only provided Quidel with additional capital, but allows us to share in the possible future appreciation of this facility," added Cashion. The gain on the sale will be amortized over the life of the lease.
Quidel Corporation discovers, develops, manufactures and markets point-of-care, rapid diagnostic tests for detection of medical conditions and illnesses. These products provide accurate, rapid and cost-effective diagnostic information for acute and chronic conditions that affect women's health throughout the phases of their lives including reproductive status, pregnancy management and osteoporosis. Quidel also provides point-of-care diagnostics for infectious diseases, including influenza A and B, strep throat, H. pylori infection, chlamydia and infectious mononucleosis. Quidel's products are sold to healthcare professionals for use in physician's offices, clinical laboratories and pharmacies, and to consumers through organizations that provide private label, store brand products. These tests provide diagnostic information to enable rapid treatment and improve health outcomes, lower costs, and increase patient satisfaction.
This press release contains forward-looking statements regarding Quidel, its products and its future activities within the meaning of the federal securities laws. These forward-looking statements involve material risks and uncertainties. Many possible factors could affect the future results and performance of Quidel's products, such that actual results and performance may differ materially. If Quidel's products fail to perform as expected, or if there is lower consumer demand for these products than expected, Quidel's financial condition and operating results may be materially and adversely affected. Quidel's financial condition and operating results may also be materially and adversely affected by a number of other factors, including, without limitation, seasonality, adverse changes in competitive and economic conditions, actions by the Company's distributors, manufacturing and production delays or difficulties and adverse actions or delays in product reviews by the FDA. Please see the discussion of these and other factors in Quidel's annual reports on Form 10-K and subsequent quarterly reports on Form 10-Q. For more information, please visit Quidel's web site at http://www.quidel.com.
Charles J. Cashion, Chief Financial Officer, 858-552-7962,
or Christa Cerciello, Investor Relations, 858-646-8031,
both of Quidel Corporation