Boston, MA 06/11/2014 (wallstreetpr) – Point of care diagnostics market leader, OraSure Technologies, Inc. (NASDAQ:OSUR), has confirmed it has entered into a Master Program Services, and Co-Promotion Agreement with research based pharmaceutical company AbbVie (NYSE:ABBV). Under the terms of the agreement, AbbVie and OraSure will collaborate in promoting OraQuick (R) HCV rapid test in the U.S.
OraSure Granted $75 Million in Exclusivity Payment
OraQuick(R) HCV will be used to test individuals at risk of hepatitis C. OraSure on its part will oversee the manufacturing and selling of the product to all the markets. The company has also granted AbbVie exclusive promotion rights for testing certain markets, as well as providing additional services in support of the HCV testing.
Over the term of the agreement, AbbVie has, on the other hand, granted OraSure $75 million in exclusivity payments to run through to December 31, 2019. OraSure will also be eligible to receive additional payments on a yearly basis over the life of the agreement.
HCV is one of the most rampant forms of chronic blood-borne infection according to the Centers of Disease Control and Prevention. It is estimated the condition affects over 5 million people. The new collaboration will allow OraSure Technologies, Inc. (NASDAQ:OSUR) to educate healthcare professionals and patients on the disease.
The announcement of the promotional partnership follows the company outlining its undivided commitment to stop various hepatitis C (HCV) testing initiatives during the annual Hepatitis day that took place on May 19, 2014. During the event Walgreen agreed to use OraQuick HCV rapid tests in its stores, in 10 states. OraQuick HCV is the only Food and Drug Administration approved care test that can be used for detection of HCV.
Updated Financial Guidance
The signing of the partnership agreement with AbbVie has prompted OraSure to update its financial guidance to reflect the impact of the co promotional activities. As a result, OraSure Technologies, Inc. (NASDAQ:OSUR) expects consolidated net revenues of between $26 and $26.5 million with a net loss of between $0.008 and $0.009 per share for Q2.