Ohio University earned a $35 million return on a 26-year-old, $1 million investment through the purchase of local health-care company Diagnostic Hybrids Inc. This money could go toward fundraising and scholarship programs.
The California-based Quidel Corp. spent $130 million to purchase Diagnostic Hybrids, which was founded by OU alum William Konneker and professors Thomas Wagner and Joseph Jollick in 1983.
Konneker will have control of how some of the money is allocated, while the rest will go to the OU Foundation, said Becky Watts, chief of staff to President Roderick McDavis.
Though he has yet to inform OU of how to use the portion of the revenue he controls, Konneker has previously supported university scholarship programs - specifically the Cutler Scholars Program.
Diagnostic Hybrids was located on campus until it moved to 1055 East State St. about two years ago.
We have grown significantly in the last few years
and the success of our products has increased awareness of our company said Geoff Morgan, Diagnostic Hybrids vice president and chief financial officer.
Diagnostic Hybrids had revenue of $38 million in 2008, which reflected a three-year growth rate of 21 percent, according to a Monday news release from Quidel.
Both companies produce rapid diagnostic tests that give results more quickly than traditional laboratory testing, said Pam Lord, spokeswoman for Quidel.
Quidel, a publicly traded company, intends to keep DHI in Athens, Lord said. There are no plans to make any changes in employment, she added.
Wesley Lowery contributed to this article.
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Elizabeth Lundblad
