OraSure wins Contact for COVID Rapid Test

Things are shaking in the health-care industry on the American side of the border.

The Defense Logistics Agency has awarded OraSure Technologies Inc (NASDAQ:OSUR) a procurement contract for its InteliSwab COVID-19 Rapid Test for over-the-counter use.

The estimated value of the contract is $205 million. Under the contract terms, OraSure will provide its InteliSwab COVID-19 Rapid Test to up to 25,000 sites throughout the U.S., and the U.S. federal government will fund the tests.

The contract will run from October 2021 through September 2022. InteliSwab is a simple test that uses an integrated swab to self-collect a sample from the lower nostrils. The result appears right on the test stick within 30 minutes, with no instruments, batteries, smartphone, or laboratory analysis needed.

It has three FDA Emergency Use Authorizations for professional point-of-care use, prescription home use, and OTC use.

To meet the requirements in the contract, OraSure anticipates having significant incremental manufacturing and operating expenses in the second half of the fiscal year 2021.

To quote CEO Stephen Tang, "We are exceptionally proud to work with the Defense Logistics Agency and the U.S. federal government to be part of the nation’s pandemic response. We strongly believe testing will play a critical role in controlling the recent outbreak of the Delta variant and help to prevent future outbreaks. We believe widespread testing will allow Americans to return to work and school safely, as well as save lives and livelihoods."

OSUR stock is down 34 cents, or 2.5%, at $13.04 in the first hour of trade Monday.