OraSure Announces Sale of Cryosurgical Systems Business
19 Agosto 2019 - 2:00PM
OraSure Technologies, Inc. (NASDAQ:OSUR), a leader in point-of-care
diagnostic tests and specimen collection devices, today announced
the sale of its cryosurgical systems business to CryoConcepts, LP
for an aggregate purchase price of $12 million in cash. The
transaction includes the transfer of OraSure’s professional
Histofreezer® product line and several private label cryosurgical
products sold in the consumer market, along with related patents
and trademarks, customer contracts and goodwill associated with the
business.
“We are pleased to have completed the sale of our cryosurgical
systems business. The sale represents a key part of our
innovation-driven growth strategy to prioritize our product
portfolio and focus our resources on growing our core Molecular
Solutions and Infectious Disease businesses through both organic
growth and acquisition,” said OraSure President and CEO, Stephen
Tang, Ph.D.
“Our management team first introduced Histofreezer® to the U.S.
in the early 90’s, so we have deep experience in the cryosurgical
market,” said Sam Niedbala, Ph.D., CEO of CryoConcepts, LP.
“Our plan is to leverage the Histofreezer® brand to accelerate our
introduction of a new generation of cryosurgical products to the
professional and consumer markets on a global basis. This
acquisition also keeps and creates jobs in the Lehigh Valley and is
a testament to the partnerships and support by our investors,
Embassy Bank, and programs like the Southside KIZ. We are excited
to have the Histofreezer® become an important part of our product
portfolio and strategy,” he added.
Updated Third Quarter and Full-Year 2019
Guidance
As a result of the sale of the cryosurgical systems business,
the Company is revising its third quarter 2019 guidance from
$39.0 million to $40.5 million in net revenues and net
income of approximately $0.04 per share to $0.05 per share, to
$37.5 million to $39.0 million in net revenues and approximately
$0.19 per share to $0.20 per share in net income, of which
approximately $0.16 per share is attributable to the estimated
gain on the sale of the business. For full-year 2019, giving effect
to the sale of the cryosurgical systems business, the Company is
revising its guidance of $165.0 million to $170.0 million in net
revenue and approximately $0.24 to $0.26 per share in net income to
$160.0 million to $165.0 million in net revenues and approximately
$0.36 per share to $0.38 per share in net income, of which
approximately $0.16 per share is attributable to the estimated
gain on the sale of the business. These projections do not account
for the impact of changes in the fair value of acquisition-related
contingent consideration or any potential transaction costs related
to future business development activity since those items cannot be
fully determined at this time.
About OraSure Technologies OraSure Technologies
is empowering the global community to improve health and wellness
by providing access to accurate essential information.
OraSure is a leader in the development, manufacture and
distribution of point-of-care diagnostic tests, molecular
collection devices and other technologies designed to detect or
diagnose critical medical conditions. Its first-to-market,
innovative products include rapid tests for the detection of
antibodies to HIV and Hepatitis C (HCV) on the OraQuick® platform,
sample self-collection and stabilization products for molecular
applications, and oral fluid laboratory tests for detecting various
drugs of abuse. Together with its wholly-owned subsidiaries (DNA
Genotek, CoreBiome and Novosanis), OraSure provides its customers
with value-added, end-to-end solutions that encompass tools,
diagnostics and services. OraSure’s portfolio of products is
sold globally to various clinical laboratories, hospitals, clinics,
community-based organizations and other public health
organizations, research institutions, distributors, government
agencies, physicians’ offices, commercial and industrial entities
and consumers. For more information on OraSure Technologies, please
visit www.orasure.com.
Important Information This press release
contains certain forward-looking statements, including with respect
to expected revenues and earnings/loss per share. Forward-looking
statements are not guarantees of future performance or results.
Known and unknown factors that could cause actual performance or
results to be materially different from those expressed or implied
in these statements include, but are not limited to: successfully
managing and integrating acquisitions of other companies in a
manner that complements or leverages our existing business, or
otherwise expands or enhances our portfolio of products and our
end-to-end service offerings, and the diversion of management’s
attention from our ongoing business and regular business
responsibilities to effect such integration; the expected economic
benefits of acquisitions (and increased returns for our
stockholders), including that the anticipated synergies, revenue
enhancement strategies and other benefits from the acquisitions may
not be fully realized or may take longer to realize than expected
and our actual integration costs may exceed our estimates; ability
to market and sell products, whether through our internal, direct
sales force or third parties; ability to manufacture products in
accordance with applicable specifications, performance standards
and quality requirements; ability to obtain, and timing and cost of
obtaining, necessary regulatory approvals for new products or new
indications or applications for existing products; ability to
comply with applicable regulatory requirements; ability to
effectively resolve warning letters, audit observations and other
findings or comments from the U.S. Food and Drug Administration
(“FDA”) or other regulators; changes in relationships, including
disputes or disagreements, with strategic partners or other parties
and reliance on strategic partners for the performance of critical
activities under collaborative arrangements; ability to meet
increased demand for the Company’s products; impact of significant
customer concentration in the genomics business; impact of
increased reliance on U.S. government contracts; failure of
distributors or other customers to meet purchase forecasts,
historic purchase levels or minimum purchase requirements for our
products; impact of replacing distributors; inventory levels at
distributors and other customers; ability of the Company to achieve
its financial and strategic objectives and continue to increase its
revenues, including the ability to expand international sales;
ability to identify, complete, integrate and realize the full
benefits of future acquisitions; impact of competitors, competing
products and technology changes; impact of negative economic
conditions; reduction or deferral of public funding available to
customers; competition from new or better technology or lower cost
products; ability to develop, commercialize and market new
products; market acceptance of oral fluid or urine testing,
collection or other products; market acceptance and uptake of
microbiome informatics, microbial genetics technology and related
analytics services; changes in market acceptance of products based
on product performance or other factors, including changes in
testing guidelines, algorithms or other recommendations by the
Centers for Disease Control and Prevention (“CDC”) or other
agencies; ability to fund research and development and other
products and operations; ability to obtain and maintain new or
existing product distribution channels; reliance on sole supply
sources for critical products and components; availability of
related products produced by third parties or products required for
use of our products; ability to maintain sustained profitability;
ability to utilize net operating loss carry forwards or other
deferred tax assets; volatility of the Company’s stock price;
uncertainty relating to patent protection and potential patent
infringement claims; uncertainty and costs of litigation relating
to patents and other intellectual property; availability of
licenses to patents or other technology; ability to enter into
international manufacturing agreements; obstacles to international
marketing and manufacturing of products; ability to sell products
internationally, including the impact of changes in international
funding sources and testing algorithms; adverse movements in
foreign currency exchange rates; loss or impairment of sources of
capital; ability to attract and retain qualified personnel;
exposure to product liability and other types of litigation;
changes in international, federal or state laws and regulations;
customer consolidations and inventory practices; equipment failures
and ability to obtain needed raw materials and components; the
impact of terrorist attacks and civil unrest; and general
political, business and economic conditions. These and other
factors that could affect our results are discussed more fully in
the Company’s Securities and Exchange Commission (“SEC”) filings,
including our registration statements, Annual Report on Form 10-K
for the year ended December 31, 2018, Quarterly Reports on
Form 10-Q, and other filings with the SEC. Although forward-looking
statements help to provide information about future prospects,
readers should keep in mind that forward-looking statements may not
be reliable. The forward-looking statements are made as of the date
of this press release and OraSure Technologies undertakes no duty
to update these statements.
Investor Contact:
Roberto CucaChief Financial Officer610-882-1820
investorinfo@orasure.com |
Media Contact:
Jeanne MellVP Corporate
Communications484-353-1575media@orasure.com |
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