OraSure Technologies (OSUR) Commences $18M HCV Testing, Treatment Supply Program
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OraSure Technologies, Inc. (Nasdaq: OSUR) announced that it will begin fulfilling a contract to supply a foreign government with $18 million of product, primarily to support a nationwide hepatitis C (HCV) testing and treatment program with the goal of eliminating HCV infection across the country by 2020.
The contract calls for the purchase of $16 million of OraQuick® HCV Rapid Antibody Tests and $2 million of OraQuick® Rapid HIV-1/2 Antibody Tests. This represents the largest supply contract for OraQuick® rapid tests in the Company’s history.
“The international marketplace is becoming an increasingly important opportunity for our business and particularly the OraQuick® HCV test. This significant purchase is a testament to the high quality and versatility of our technology which is ideal for such broad scale applications,” said Douglas A. Michels, President and Chief Executive Officer of OraSure Technologies. “This is just one of a growing number of countries evaluating similar country-wide HCV elimination programs.”
The contract provides for product deliveries over a 12-month period beginning in 2016 and continuing through late 2017. The Company expects to recognize revenue over the next several quarters as follows: Q4 2016 - $1.4 million; Q1 2017 - $3.0 million; Q2 2017 - $4.8 million; Q3 2017 - $7.6 million; and Q4 2017 - $1.2 million. Approximately 90 percent of these revenues are for the OraQuick HCV test with the balance being for the OraQuick HIV test.
The contract also includes an option for 2017/2018 under which the government may make an additional purchase of up to 100 percent of the original quantities of product on the same terms and conditions as provided in the contract.
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