OraSure Technologies (OSUR: Quote) announced Wednesday that it has reached a Master Program Services and Co-Promotion Agreement with AbbVie (ABBV: Quote) under which AbbVie and OraSure will co-promote the Company's OraQuick HCV Rapid Test in the United States.
The product will be used to test individuals at-risk for hepatitis C (HCV). OraSure will be responsible for manufacturing and selling the product directly into all markets.
As per the agreement, OraSure has granted exclusive promotion rights to AbbVie for the OraQuick HCV test in certain markets and will provide certain additional services in support of HCV testing. In exchange for the exclusive rights granted to AbbVie, OraSure will receive up to $75 million in exclusivity payments over the term of the agreement, which runs through December 31, 2019.
In addition, upon achievement of certain performance-based milestones, OraSure will be eligible to receive additional payments annually over the life of the agreement. Further information regarding the agreement will be available in the Company's 8-K Report filed later today with the SEC.
As a result of the new co-promotion agreement announced, OraSure has updated its financial guidance to reflect the initial impact of this arrangement and is now projecting consolidated net revenues ranging from $26.0 to $26.5 million and a consolidated net loss of approximately $0.08 to $0.09 per share for the second quarter of 2014. Analysts polled by Thomson Reuters expect the company to report a loss of $0.09 per share and revenues of $25.39 million for the second-quarter. Analysts' estimates typically exclude special items.
OraSure said in May that it expected consolidated net revenues to range from $25.2 to $25.7 million and consolidated net loss of approximately $0.09 to $0.10 per share for the second quarter of 2014.
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by RTT Staff Writer
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