Post by icemandios on Mar 2, 2021 3:59:28 GMT
OraSure Technologies, Inc. Announces 2020 Full-Year and Fourth Quarter Financial Results and Provides COVID-19 Update
Full-Year 2020 Net Revenues of $172 Million Increased 11% Year-Over-Year, Driven by $50 Million in Sales of Oral Fluid Collection Devices for COVID-19 Molecular Testing
COVID-19 Rapid Antigen Test clinical trials complete; OraSure plans to submit both a Prescription Self-Test and a Professional Test for EUA in Q1
Management to Host Conference Call and Webcast Today at 5:00 p.m. ET
BETHLEHEM, Pa., March 01, 2021 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ: OSUR), a leader in point-of-care diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services, today announced its financial results for the three months and year ended December 31, 2020.
“OraSure continues to successfully navigate the pandemic, with a record-breaking fourth quarter and double-digit full-year revenue growth driven by a strong sequential quarterly increase in sales of our molecular sample collection kits for COVID-19 testing. We expect this strong sustained performance to persist as testing continues to be a key strategy to combat the ongoing pandemic. Our base business was resilient, with demonstrated strength in international HIV testing,” said Stephen S. Tang, Ph.D., President and Chief Executive Officer.
Dr. Tang continued, “Importantly, we have made substantial progress on our COVID-19 Rapid Antigen Self-Test and oral fluid antibody test. We expect that OraSure’s COVID-19 activities will continue to accelerate the Company’s growth and significantly outweigh any negative impact of the pandemic on other parts of our business. We have locked the proprietary assay chemistry and completed development and clinical testing of our rapid antigen test for COVID-19. We accelerated the Prescription Self-Test trials and now plan to submit for both the Professional and Prescription Self-Test for Emergency Use Authorization (EUA) by the end of this month. We are also planning to resubmit two separate EUAs for our lab-based oral fluid antibody test, including additional analytical study data, as requested by the FDA, and look forward to bringing this important product to market as soon as possible.”
Financial Highlights
Net revenues for the fourth quarter of 2020 were $62.9 million, a 27% increase from the fourth quarter of 2019. Net product and services revenues were $60.4 million, a 28% increase from the fourth quarter of 2019.
Net revenues for the full year 2020 were $171.7 million, an 11% increase over 2019.
Total product and service revenues for the Company’s molecular business unit were $40.3 million during the fourth quarter of 2020, an increase of 58% from the fourth quarter of 2019.
This increase included $22.5 million in sales of sample collection devices for COVID-19 molecular testing.
Total product and service revenues for the Company’s molecular business unit were $102.8 million for the full year 2020, an increase of 45% from the full year 2019. The increase included $49.8 million in sales of sample collection devices for COVID-19 molecular testing.
Full year 2020 international sales of the Company’s HIV products grew 16% over the prior year driven by a 21% increase in HIV Self-Test sales in Africa. For the fourth quarter, HIV international revenue was $11.3 million, a 16% increase from the fourth quarter of 2019. This was a record quarter and year for sales of OraSure’s HIV self-tests internationally.
Net income for the fourth quarter of 2020 was $1.9 million, or $0.03 per share on a fully-diluted basis, compared to net income of $2.4 million, or $0.04 per share on a fully-diluted basis, for the fourth quarter of 2019.
Cash and investments totaled $257.1 million at December 31, 2020.
COVID-19 Update
Molecular/PCR:
Sales of sample collection devices for molecular/PCR COVID-19 testing in the fourth quarter showed sequential quarterly growth and persistence of commercial opportunity; the Company’s sample collection kits continued to be included in Emergency Use Authorizations (EUAs) granted to customers.
Use of DNA Genotek molecular sample collection kits continued to grow in back-to-work settings, back-to-school programs, laboratory testing and direct-to-consumer offerings.
OraSure continues to build its customer base, with high-volume repeat orders from existing customers and demand from new customers.
The Company’s molecular collection kits are now included in eight EUAs granted by the U.S. Food and Drug Administration (FDA) to DNA Genotek customers for COVID-19 testing.
The Company’s ORAcollect ® •RNA saliva collection device has been used in the more than one million COVID-19 tests administered by State University of New York campuses since the start of the 2020-2021 academic year. These tests were developed by DNA Genotek customer Quadrant Biosciences.
The Company’s OMNIgene·ORAL and ORAcollect ® •RNA saliva collection devices have received interim authorization for use in COVID-19 testing from Health Canada.
Through OraSure’s customer Chronomics, the OMNIgene·ORAL is being utilized as a collection device for the UK Government’s “Test to Release for International Travel” COVID-19 testing program.
Antigen:
OraSure has finalized all product development and completed clinical studies for its COVID-19 Rapid Antigen Self-Test and now plans FDA EUA submission for both Professional and Prescription Self-Test in the first quarter.
OraSure has locked the proprietary assay chemistry and completed development of its COVID-19 Rapid Antigen Self-Test and has collected all clinical study data to now submit both the Professional version and Prescription Self-Test version for EUA in the first quarter of 2021.
Subject to receipt of EUA, this product would test for active COVID-19 infection using nasal samples self-collected from the lower nostrils. The COVID-19 Rapid Antigen Self-Test is designed to be performed anytime, anywhere, with no instrumentation, batteries or laboratory analysis needed to interpret results.
Subject to regulatory approvals, the Company intends to market its Prescription Self-Test for use by individual consumers (with prescription) at home, or in any location by employers/universities on- or off-site, or by physicians, or public health via remote testing, and its Professional Test for use at drive-through sites, physician offices, public health testing sites, and employer/university health centers.
After the Company submits the Professional Test and Prescription Self-Test for EUA, it intends to continue plans to pursue an OTC claim.
The Company will be manufacturing at risk and intends to launch the tests without delay, subject to authorization.
Antibody:
OraSure is working with the FDA to secure Emergency Use Authorization for its lab-based OraSure SARS-CoV-2 Antibody ELISA. Currently no COVID-19 antibody tests that use oral fluid samples have received Emergency Use Authorization. OraSure’s test could be the first. Oral fluid samples minimize healthcare professionals’ need for personal protective equipment and reduces their exposure to potentially infected patients as compared to blood draws; the test could aid health officials in community surveillance efforts and seroprevalence studies.
With this test, individuals would use the OraSure Oral Antibody Collection Device to self-collect an oral fluid sample under the observation of a healthcare professional. The sample would then be placed into the buffer vial for storage and transport, and then later dispensed onto the OraSure SARS-CoV-2 ELISA microplate for testing in a laboratory. This lab-based antibody test can aid in identifying individuals with an adaptive immune response to SARS-CoV-2, indicating prior infection.
At the request of the FDA, the Company plans to resubmit two separate EUAs for the test, one covering the oral fluid specimen collector and one for the microplate assay. In addition, the FDA has requested that additional analytical studies be conducted on sample collection and stability.
OraSure continues to sell its antibody test for research use only, which has led to interest from several companies and labs regarding seroprevalence studies in cities or university populations.
Manufacturing:
OraSure’s initiative to increase manufacturing capacity to meet demand for COVID-19 sample collection kits and tests continues on schedule. Additional expansion planned to support Rapid Antigen Self-Test.
Previously the Company had disclosed that it was expanding manufacturing capacity for the Rapid Antigen Self-Test to 70 million tests per year in the third quarter of 2021 (including tests for HIV, HCV and Ebola).
OraSure now plans additional expansion of 50 million Rapid Antigen Self-Tests, bringing capacity to 120 million tests per year (including tests for HIV, HCV and Ebola) by the second quarter of 2022. The Company expects this additional capacity to support sales outside of the U.S.
As previously disclosed, the Company is expanding capacity of its molecular sample collection devices to a rate of approximately 75 million units annually in the second quarter of 2021 and further to 80 million units in the third quarter, including non-COVID kits.
Also as previously disclosed, installation of new lines for the oral-fluid antibody test will bring total capacity to 20 million units per year by the fourth quarter, including existing products.
Financial Results for the Three Months Ended December 31, 2020
Net revenues for the fourth quarter of 2020 of $62.9 million increased 27% from the comparable period of 2019, primarily as a result of strong sales of molecular sample collection kits for COVID-19 testing and increased international sales of the Company’s HIV Self-Test partially offset by declines in revenues of our other product lines largely due to the impact of COVID-19.
Gross profit percentage was 61% for the three months ended December 31, 2020 compared to 60% for the three months ended December 31, 2019. Gross profit in the current quarter benefited from an improved product mix associated with higher gross profit percentage product sales.
For the three months ended December 31, 2020, operating expenses were $30.3 million, an increase of $4.1 million from the $25.8 million reported for the three months ended December 31, 2019, largely due to increased investment in the development of the Company’s COVID products.
The Company generated operating income of $7.9 million in the fourth quarter of 2020 compared to operating income of $4.1 million in the fourth quarter of 2019.
During the fourth quarters of 2020 and 2019, the Company recorded income tax expense of $5.7 million and $2.1 million, respectively. Income tax expense in both periods largely consisted of foreign taxes due related to our Canadian subsidiary.
First Quarter 2021 Guidance
The Company expects first quarter 2021 net revenues to range from $55.0 million to $60.0 million.
Full-Year 2020 Net Revenues of $172 Million Increased 11% Year-Over-Year, Driven by $50 Million in Sales of Oral Fluid Collection Devices for COVID-19 Molecular Testing
COVID-19 Rapid Antigen Test clinical trials complete; OraSure plans to submit both a Prescription Self-Test and a Professional Test for EUA in Q1
Management to Host Conference Call and Webcast Today at 5:00 p.m. ET
BETHLEHEM, Pa., March 01, 2021 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ: OSUR), a leader in point-of-care diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services, today announced its financial results for the three months and year ended December 31, 2020.
“OraSure continues to successfully navigate the pandemic, with a record-breaking fourth quarter and double-digit full-year revenue growth driven by a strong sequential quarterly increase in sales of our molecular sample collection kits for COVID-19 testing. We expect this strong sustained performance to persist as testing continues to be a key strategy to combat the ongoing pandemic. Our base business was resilient, with demonstrated strength in international HIV testing,” said Stephen S. Tang, Ph.D., President and Chief Executive Officer.
Dr. Tang continued, “Importantly, we have made substantial progress on our COVID-19 Rapid Antigen Self-Test and oral fluid antibody test. We expect that OraSure’s COVID-19 activities will continue to accelerate the Company’s growth and significantly outweigh any negative impact of the pandemic on other parts of our business. We have locked the proprietary assay chemistry and completed development and clinical testing of our rapid antigen test for COVID-19. We accelerated the Prescription Self-Test trials and now plan to submit for both the Professional and Prescription Self-Test for Emergency Use Authorization (EUA) by the end of this month. We are also planning to resubmit two separate EUAs for our lab-based oral fluid antibody test, including additional analytical study data, as requested by the FDA, and look forward to bringing this important product to market as soon as possible.”
Financial Highlights
Net revenues for the fourth quarter of 2020 were $62.9 million, a 27% increase from the fourth quarter of 2019. Net product and services revenues were $60.4 million, a 28% increase from the fourth quarter of 2019.
Net revenues for the full year 2020 were $171.7 million, an 11% increase over 2019.
Total product and service revenues for the Company’s molecular business unit were $40.3 million during the fourth quarter of 2020, an increase of 58% from the fourth quarter of 2019.
This increase included $22.5 million in sales of sample collection devices for COVID-19 molecular testing.
Total product and service revenues for the Company’s molecular business unit were $102.8 million for the full year 2020, an increase of 45% from the full year 2019. The increase included $49.8 million in sales of sample collection devices for COVID-19 molecular testing.
Full year 2020 international sales of the Company’s HIV products grew 16% over the prior year driven by a 21% increase in HIV Self-Test sales in Africa. For the fourth quarter, HIV international revenue was $11.3 million, a 16% increase from the fourth quarter of 2019. This was a record quarter and year for sales of OraSure’s HIV self-tests internationally.
Net income for the fourth quarter of 2020 was $1.9 million, or $0.03 per share on a fully-diluted basis, compared to net income of $2.4 million, or $0.04 per share on a fully-diluted basis, for the fourth quarter of 2019.
Cash and investments totaled $257.1 million at December 31, 2020.
COVID-19 Update
Molecular/PCR:
Sales of sample collection devices for molecular/PCR COVID-19 testing in the fourth quarter showed sequential quarterly growth and persistence of commercial opportunity; the Company’s sample collection kits continued to be included in Emergency Use Authorizations (EUAs) granted to customers.
Use of DNA Genotek molecular sample collection kits continued to grow in back-to-work settings, back-to-school programs, laboratory testing and direct-to-consumer offerings.
OraSure continues to build its customer base, with high-volume repeat orders from existing customers and demand from new customers.
The Company’s molecular collection kits are now included in eight EUAs granted by the U.S. Food and Drug Administration (FDA) to DNA Genotek customers for COVID-19 testing.
The Company’s ORAcollect ® •RNA saliva collection device has been used in the more than one million COVID-19 tests administered by State University of New York campuses since the start of the 2020-2021 academic year. These tests were developed by DNA Genotek customer Quadrant Biosciences.
The Company’s OMNIgene·ORAL and ORAcollect ® •RNA saliva collection devices have received interim authorization for use in COVID-19 testing from Health Canada.
Through OraSure’s customer Chronomics, the OMNIgene·ORAL is being utilized as a collection device for the UK Government’s “Test to Release for International Travel” COVID-19 testing program.
Antigen:
OraSure has finalized all product development and completed clinical studies for its COVID-19 Rapid Antigen Self-Test and now plans FDA EUA submission for both Professional and Prescription Self-Test in the first quarter.
OraSure has locked the proprietary assay chemistry and completed development of its COVID-19 Rapid Antigen Self-Test and has collected all clinical study data to now submit both the Professional version and Prescription Self-Test version for EUA in the first quarter of 2021.
Subject to receipt of EUA, this product would test for active COVID-19 infection using nasal samples self-collected from the lower nostrils. The COVID-19 Rapid Antigen Self-Test is designed to be performed anytime, anywhere, with no instrumentation, batteries or laboratory analysis needed to interpret results.
Subject to regulatory approvals, the Company intends to market its Prescription Self-Test for use by individual consumers (with prescription) at home, or in any location by employers/universities on- or off-site, or by physicians, or public health via remote testing, and its Professional Test for use at drive-through sites, physician offices, public health testing sites, and employer/university health centers.
After the Company submits the Professional Test and Prescription Self-Test for EUA, it intends to continue plans to pursue an OTC claim.
The Company will be manufacturing at risk and intends to launch the tests without delay, subject to authorization.
Antibody:
OraSure is working with the FDA to secure Emergency Use Authorization for its lab-based OraSure SARS-CoV-2 Antibody ELISA. Currently no COVID-19 antibody tests that use oral fluid samples have received Emergency Use Authorization. OraSure’s test could be the first. Oral fluid samples minimize healthcare professionals’ need for personal protective equipment and reduces their exposure to potentially infected patients as compared to blood draws; the test could aid health officials in community surveillance efforts and seroprevalence studies.
With this test, individuals would use the OraSure Oral Antibody Collection Device to self-collect an oral fluid sample under the observation of a healthcare professional. The sample would then be placed into the buffer vial for storage and transport, and then later dispensed onto the OraSure SARS-CoV-2 ELISA microplate for testing in a laboratory. This lab-based antibody test can aid in identifying individuals with an adaptive immune response to SARS-CoV-2, indicating prior infection.
At the request of the FDA, the Company plans to resubmit two separate EUAs for the test, one covering the oral fluid specimen collector and one for the microplate assay. In addition, the FDA has requested that additional analytical studies be conducted on sample collection and stability.
OraSure continues to sell its antibody test for research use only, which has led to interest from several companies and labs regarding seroprevalence studies in cities or university populations.
Manufacturing:
OraSure’s initiative to increase manufacturing capacity to meet demand for COVID-19 sample collection kits and tests continues on schedule. Additional expansion planned to support Rapid Antigen Self-Test.
Previously the Company had disclosed that it was expanding manufacturing capacity for the Rapid Antigen Self-Test to 70 million tests per year in the third quarter of 2021 (including tests for HIV, HCV and Ebola).
OraSure now plans additional expansion of 50 million Rapid Antigen Self-Tests, bringing capacity to 120 million tests per year (including tests for HIV, HCV and Ebola) by the second quarter of 2022. The Company expects this additional capacity to support sales outside of the U.S.
As previously disclosed, the Company is expanding capacity of its molecular sample collection devices to a rate of approximately 75 million units annually in the second quarter of 2021 and further to 80 million units in the third quarter, including non-COVID kits.
Also as previously disclosed, installation of new lines for the oral-fluid antibody test will bring total capacity to 20 million units per year by the fourth quarter, including existing products.
Financial Results for the Three Months Ended December 31, 2020
Net revenues for the fourth quarter of 2020 of $62.9 million increased 27% from the comparable period of 2019, primarily as a result of strong sales of molecular sample collection kits for COVID-19 testing and increased international sales of the Company’s HIV Self-Test partially offset by declines in revenues of our other product lines largely due to the impact of COVID-19.
Gross profit percentage was 61% for the three months ended December 31, 2020 compared to 60% for the three months ended December 31, 2019. Gross profit in the current quarter benefited from an improved product mix associated with higher gross profit percentage product sales.
For the three months ended December 31, 2020, operating expenses were $30.3 million, an increase of $4.1 million from the $25.8 million reported for the three months ended December 31, 2019, largely due to increased investment in the development of the Company’s COVID products.
The Company generated operating income of $7.9 million in the fourth quarter of 2020 compared to operating income of $4.1 million in the fourth quarter of 2019.
During the fourth quarters of 2020 and 2019, the Company recorded income tax expense of $5.7 million and $2.1 million, respectively. Income tax expense in both periods largely consisted of foreign taxes due related to our Canadian subsidiary.
First Quarter 2021 Guidance
The Company expects first quarter 2021 net revenues to range from $55.0 million to $60.0 million.