Benzinga | Sep 20, 2021 06:02AM EDT

OraSure Receives $205M Procurement Contract For InteliSwab From The Defense Logistics Agency To Supply Over-The-Counter Kits As Part Of National Pandemic Response

OraSure Technologies, Inc. (NASDAQ:OSUR), a global leader in point-of-care and home diagnostic testing and sample collection technologies, announced today that the Defense Logistics Agency has awarded the Company a procurement contract for its InteliSwab(tm) COVID-19 Rapid Test for over-the-counter use, which the Defense Logistics Agency estimated to have a value of $205 million. Under the terms of the contract, OraSure will provide its InteliSwab(tm) COVID-19 Rapid Test to up to 25,000 sites throughout the United States and the tests will be funded by the U.S. federal government. The contract will run from October 2021 through September 2022.

"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," said OraSure President and CEO Stephen Tang, Ph.D. "InteliSwab(tm) is uniquely suited to fulfill this mission as it was designed to be one of the simplest rapid antigen tests. Its intuitive nature makes it ideal for use in underserved communities and consumer testing settings throughout the U.S."

InteliSwab(tm) is a simple "swab, swirl, see" 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 Emergency Use Authorizations from the Food and Drug Administration for professional point-of-care use, prescription (Rx) home use, and over-the-counter (OTC) use.

As the Company ramps to meet the requirements in this contract, it anticipates having significant incremental manufacturing and operating expenses in the second half of fiscal year 2021. Additionally, given the volume ramp implied in the contract, the Company expects the preponderance of revenue associated with the contract to come in calendar year 2022.

Development of the InteliSwab(tm) COVID-19 Rapid Test has been funded in whole or in part with Federal funds from the Department of Health and Human Services; Office of the Assistant Secretary for Preparedness and Response; Biomedical Advanced Research and Development Authority, Division of Research Innovation and Ventures under Contract No. 75A50120C00061.