Dive Brief:
- QuidelOrtho’s board fired CEO Doug Bryant on Wednesday after nearly 15 years with the company. Bryant also resigned from the company’s board.
- The diagnostics firm made the decision after a challenging quarter in which its revenue and net income declined year over year. Analysts expressed disappointment with the company’s 2024 forecasts, and QuidelOrtho’s shares lost nearly a third of their value on Feb. 14.
- The board is searching for a new CEO. Chief Commercial Officer Michael Iskra will serve as interim CEO, and Chief Operating Officer Robert Bujarski will serve as interim president.
Dive Insight:
Bryant had been CEO of Quidel since 2009. In that time, he oversaw the launches of Quidel’s Sofia and Savanna diagnostics platforms, the acquisition of Alere, and the company’s COVID-19 testing efforts, William Blair analyst Andrew Brackmann wrote in a research note.
Bryant also led the company through its $6 billion acquisition of Ortho Clinical Diagnostics in 2022, which received a chillier reception from investors.
“His time, however, had its challenges, with sometimes overly optimistic messaging and delays on efforts such as new product launches (Savanna) or synergy capture (Ortho acquisition),” Brackmann wrote.
The analyst flagged changes QuidelOrtho made to its 2024 forecast three days after its earnings announcement, widening the range for its expected earnings per share.
“Following last week’s 2024 guidance debacle and the ensuing calls from many investors advocating for a change in management, we understand why the board made this move,” Brackmann wrote.
Bryant will be able to receive severance payments specified in his contract, according to a regulatory filing.
QuidelOrtho stated the changes were made with the goal of “enhancing operational efficiency, driving revenue growth and delivering shareholder value.” The company created a new office of the CEO, which Iskra, Bujarski and CFO Joseph Busky will occupy.
The number of board seats will decrease from 11 to 10, and Kenneth Buechler will remain chairman while the company searches for a new candidate.