Summary
Danaher Corporation (DHR) announced on July 26, 2021, through its subsidiary Beckman Coulter, Inc., a significant modification and partial termination of its prior commercial agreement with Quidel Corporation related to cardiac diagnostic tests. This strategic move involves Beckman Coulter acquiring the exclusive rights to manufacture, distribute, and sell Quidel's TRIAGE® BNP assay, which will be re-branded as Access BNP. This agreement also resolves ongoing litigation between the two companies. For investors, the key takeaway is the financial impact of this new arrangement. Danaher will incur a pre-tax charge of approximately $550 million (or $418 million after-tax) in the third quarter of 2021. While this represents a substantial one-time expense, it secures exclusive rights to a key diagnostic product and resolves legal disputes, potentially leading to future revenue growth and operational efficiency under the Danaher umbrella.
Key Highlights
- 1Beckman Coulter (Danaher subsidiary) to acquire exclusive rights to manufacture, distribute, and sell the TRIAGE® BNP assay from Quidel.
- 2The acquired assay will be re-branded as Access BNP.
- 3The new agreements resolve existing litigation between Beckman Coulter and Quidel.
- 4Danaher will pay Quidel a per-test fee for Access BNP sales from 2021 through 2029, with a minimum annual fee of $70 million and a maximum of $75 million.
- 5A significant pre-tax charge of approximately $550 million ($418 million after-tax) will be recorded in Q3 2021 related to this transaction and litigation settlement.
- 6This agreement modifies and partially terminates a prior commercial arrangement between the parties.