Form 4: Carlyle Group Sells Shares of QuidelOrtho Corp (QDEL) Under 10b5-1 Trading Plan

Carlyle Group, a major shareholder of QuidelOrtho Corp, executed multiple sales of common stock between July 8th and July 9th, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Carlyle Group, through various affiliated entities, sold shares of QuidelOrtho Corp (QDEL) common stock on July 8th and 9th, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on May 12, 2024.
• On July 8th, 2024, 57,007 shares were sold at a weighted average price of $30.3458, with individual prices ranging from $30.07 to $30.9989.
• An additional 2,966 shares were sold on July 8th, 2024, at a weighted average price of $31.2852, with individual prices ranging from $31.00 to $31.55.
• On July 9th, 2024, 23,781 shares were sold at a weighted average price of $30.0706, with individual prices ranging from $30.00 to $30.33.
• Following these transactions, Carlyle Group's indirect beneficial ownership stands at 11,165,970 shares.
• The sales were conducted by Carlyle Partners VI Cayman Holdings, L.P., with various Carlyle Group entities potentially deemed to share beneficial ownership, though they disclaim such ownership.

Sentiment

Score: 5

Explanation: The document itself is neutral, simply reporting transactions. The sales could be interpreted as slightly negative, but the existence of a 10b5-1 plan mitigates this.

Risks

• Continued sales by Carlyle Group could exert downward pressure on QDEL's stock price.
• The market may interpret the sales as a lack of confidence in QuidelOrtho's future prospects, regardless of the pre-arranged trading plan.

Future Outlook

The document does not provide any forward-looking statements regarding QuidelOrtho's future performance or Carlyle Group's future trading activity beyond the existing 10b5-1 plan.

Industry Context

Share sales by major holders are common and can be part of portfolio management strategies. The use of a 10b5-1 plan suggests the sales were pre-planned and not based on recent insider information.

Comparison to Industry Standards

• Comparing Carlyle's selling activity to other major shareholders in the diagnostics industry is difficult without knowing the specific investment strategies and fund mandates.
• Similar transactions by private equity firms in comparable companies (e.g., medical device or diagnostics manufacturers) often occur after a period of ownership and value creation.
• The size of the stake sold is relatively small compared to Carlyle's overall holdings, suggesting a gradual exit strategy rather than a complete divestment.

Stakeholder Impact

• The share sales could have a minor negative impact on shareholder sentiment in the short term.
• The impact on employees, customers, suppliers, and creditors is likely to be negligible.

Key Dates