QuidelOrtho has put its point-of-care testing division on the block, seeking roughly $1.5bn as private equity firms circle healthcare assets. The San Diego diagnostics company, which pioneered rapid Covid-19 antigen tests during the pandemic, is evaluating bids from Advent International and other buyout firms for a unit that generated about $150mn in EBITDA last year.

The potential sale reflects QuidelOrtho's struggle with $2.6bn in net debt accumulated from its 2021 acquisition of Ortho Clinical Diagnostics. That deal, valued at $8bn including debt, left the company with leverage at roughly 4.2 times earnings. Shares have collapsed nearly 90 percent from pandemic-era peaks when the market cap approached $20bn.

Private equity interest in healthcare assets remains strong despite elevated interest rates slowing deal flow. Recent transactions include TPG and Blackstone's $18.3bn buyout of medical device maker Hologic, signaling continued appetite for tested businesses with recurring revenue streams.

While the sale process has advanced, QuidelOrtho has not committed to divesting the unit. The company declined to comment, as did Advent International. Smaller firms SK Capital Partners and Archimed have also shown interest in the respiratory and cardiac testing business.