New York City-based Newtyn Management increased its stake in QuidelOrtho Corporation by purchasing 994,332 shares in the third quarter, adding an estimated $30.4 million to its position. The firm now holds 2.7 million QDEL shares valued at $79.5 million, making it the fund’s second-largest holding, accounting for 9.7% of its assets under management (AUM).

According to a filing with the Securities and Exchange Commission on November 14, Newtyn Management reported buying 994,332 additional QDEL shares in the third quarter. This raised its total position to 2.7 million shares with a reported value of $79.5 million as of September 30. The fund’s QDEL stake now represents 9.7% of its $816.9 million in 13F reportable assets.

As of November 14, QDEL shares were priced at $27.76, down 26% over the past year, underperforming the S&P 500, which is up 13% in the same period. QuidelOrtho Corporation develops and manufactures diagnostic testing technologies, serving various healthcare providers and markets globally with its diverse product portfolio.

Newtyn’s move to buy more QDEL shares signals a high-conviction bet on the company’s potential turnaround. Despite QDEL’s stock decline, recent financial results show signs of stabilization and growth in core areas. The company’s focus on innovation and expanding testing access positions it well in the diagnostics industry.

Read more at Yahoo Finance: Why One Value Fund Just Bought $30 Million of a Diagnostics Stock Down 90% From Pandemic-Era Highs