NASDAQ:OSUR Rockets on Deal with Gates Foundation
NASDAQ:OSUR Rockets on Deal with Gates Foundation. OraSure Technologies Inc. announced Tuesday that it has reached an agreement with the Bill & Melinda Gates Foundation. The deal will make it possible for the company to offer its OraQuick HIV Self-Test in 50 developing countries at affordable prices.
OraSure Technologies climbed throughout the morning trading session Tuesday and closed up 10.05% or $ 1.58 at $17.30 with volume at a 3-month high. The stock broke out of nearly a 2-month trading range and set a new high for the year and is currently just under $1billion in market capitalisation.
The deal will allow the company to offer affordable tests to non-governmental organizations in eligible countries in Africa and Asia, including Malawi, Zambia, and Zimbabwe, where the company has been providing tests for the Self-Testing in Africa (STAR) project run by Population Services International.
Making the tests more affordable will render OraSure eligible to get up to $20 million from the Gates Foundation over the four-year term of the deal, not to exceed $6 million in any given year. The payments will be tied to the volume of product sold by OraSure and reimbursement of undisclosed costs.
OraSure Technologies, Inc. (OraSure) is involved in the development, manufacture, marketing and sale of oral fluid diagnostic products and specimen collection devices using its technologies, as well as other diagnostic products, including immunoassays and other in vitro diagnostic tests that are used on other specimen types. The Company operates in two segments: OSUR and DNAG. OSUR consists of the development, manufacture and sale of diagnostic products, specimen collection devices, and medical devices. DNAG or molecular collection systems business consists primarily of the development, manufacture and sale of oral fluid collection devices that are used to collect, stabilize, and store samples of genetic material for molecular testing. It also manufactures and sells medical devices used for the removal of benign skin lesions by cryosurgery or freezing. It sells over-the-counter (OTC) cryosurgical products to consumers in North America, Europe, Central and South America, and Australia.