Post by icemandios on May 29, 2020 12:30:25 GMT
OraSure Technologies, Inc. Announces Purchase of UrSure, Inc.
Acquisition strengthens OraSure’s leadership position in HIV field
BETHLEHEM, Pa., May 29, 2020 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ: OSUR), a leader in point of care diagnostic tests and specimen collection and stabilization devices, and microbiome laboratory and analytical services, today announced that it has entered into a definitive agreement to acquire privately owned UrSure, Inc. (“UrSure”) for cash.
This transaction supports OraSure’s strategy of expanding its product offerings to include additional diagnostic products, particularly point-of-care tests that complement its current infectious disease portfolio and pipeline. OraSure has the first and only FDA-approved over-the-counter HIV rapid test which is currently being used in the federal government’s “Ending the HIV Epidemic: A Plan for America” initiative. The Company’s oral fluid self-test for HIV is the first and only WHO-prequalified oral fluid test used in developing countries to help end HIV transmissions. Importantly, adherence monitoring testing has the same call points for OraSure as HIV/HCV products in Public Health, hospitals and clinics, as well as global health segments.
“The addition of UrSure to OraSure’s portfolio complements our work with HIV diagnostics and strengthens OraSure’s position as a global leader among public-health focused diagnostic companies in the HIV field. We are now able to offer a product line that covers the spectrum from screening to treatment adherence. We are proud that we are working to end the HIV/AIDS epidemic by helping people know their HIV status, remain adherent and reduce the risk of HIV transmission,” said OraSure President and CEO, Stephen Tang, Ph.D. “This is a stellar example of how we are building on our existing expertise within the field of infectious disease to offer our customers more value by providing access to accurate, essential information.”
Guidelines set by the Centers for Disease Control and Prevention (CDC) recommend PrEP adherence counseling but the current standard of care for adherence monitoring is self-report, which has been shown to be suboptimal at tracking objective patient adherence. In addition, treatment adherence has been identified as a significant need to ensure that goals for HIV eradication programs such as UNAIDS’ 90:90:90 and the Ending the HIV Epidemic are met. Accurate adherence monitoring is crucial because risk of HIV transmission is greater if patients do not take their PrEP or HIV treatment consistently.
Testing and counseling lead to significant improvement in long-term adherence to PrEP and in attendance of follow-up visits to health care providers, ultimately reducing HIV transmission rates. Governments and payers are incentivized to ensure patients are adherent, given the high lifetime costs of a patient living with HIV. Current estimates project approximately 550,000 patients on PrEP globally by end of 2020 with more than 2 million by the end of 2024.
“UrSure was founded to develop novel diagnostics that support all patients on their HIV treatment and prevention medications. No company has more experience bringing innovative point of care tests to the public health market than OraSure, and we couldn’t be more excited to join their team,” said Giffin Daughtridge MD, MPA, UrSure, Inc.’s Co-founder and CEO.
The transaction will require an upfront cash payment of $3 million and potential post-closing contingent consideration totaling up to an additional $28 million. The contingent consideration consists of up to $5 million for achievement of certain product development milestones and receipt of applicable regulatory approvals and up to $23 million for achievement of certain revenue and funding milestones, in each case over a multi-year period. The Company intends to fund the purchase of UrSure with its existing cash balances. The transaction is subject to the satisfaction of customary closing conditions.
OraSure Technologies empowers the global community to improve health and wellness by providing access to accurate, essential information. Together with its wholly-owned subsidiaries DNA Genotek, Diversigen, CoreBiome (now operating under the Diversigen brand) and Novosanis, OraSure provides its customers with end-to-end solutions that encompass tools, services and diagnostics. The OraSure family of companies is a leader in the development, manufacture, and distribution of rapid diagnostic tests, sample collection and stabilization devices, and molecular services solutions designed to discover and detect critical medical conditions. OraSure’s portfolio of products is sold globally to clinical laboratories, hospitals, physician’s offices, clinics, public health and community-based organizations, research institutions, government agencies, pharma, commercial entities and direct to consumers. For more information on OraSure Technologies, please visit www.orasure.com.
UrSure, Inc. was founded in 2015 by two physicians, who had started a clinic in Philadelphia and recognized that their patients were struggling to consistently take Truvada as PrEP, the medication that prevents HIV infection. In response, UrSure has developed a series of tests to measure and improve adherence to medications for HIV prevention and treatment. To date, UrSure has received millions of dollars in NIH Small Business Innovation Research funding and commercialized the world’s first test for PrEP and HIV treatment adherence, which is in use in clinics nationwide. For more information on UrSure, please visit www.ursureinc.com.