BETHLEHEM, Pa., Aug. 5, 2015 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ:OSUR), a leader in point-of-care diagnostic tests and specimen collection devices, today announced its consolidated financial results for the three and six months ended June 30, 2015.
Financial Highlights
- Consolidated net revenues for the second quarter of 2015 were a record $30.4 million, a 15% increase from the comparable quarter of 2014. Consolidated net revenues for the six months ended June 30, 2015 were $57.5 million, also a 15% increase from the comparable period of 2014.
- The Company’s molecular collection systems subsidiary, DNA Genotek (“DNAG”), contributed $8.1 million in net revenues during the second quarter of 2015, which is a record and represents a 65% increase over the second quarter of 2014. DNAG net revenues during the six months ended June 30, 2015 were $14.8 million, a 39% increase from the comparable period in 2014.
- Net domestic product revenues for the Company’s OraQuick® rapid HCV test were $1.7 million for the second quarter of 2015, representing a 39% increase over the second quarter of 2014. Net domestic product revenues for the OraQuick® rapid HCV test were $2.9 million for the six months ended June 30, 2105, a 53% increase from the comparable period in 2015. Total HCV-related revenues, including exclusivity payments recognized under the HCV co-promotion agreement with AbbVie, were $5.7 million and $11.2 million for the second quarter and first six months of 2015, respectively. Total HCV-related revenues for the second quarter and first six months of 2014 were $2.9 million and $4.5 million, respectively. In July 2015, the Company received an additional $15.0 million exclusivity payment pursuant to its HCV co-promotion agreement with AbbVie.
- Consolidated net income for the second quarter of 2015 was $2.0 million, or $0.03 per share on a fully-diluted basis, which compares to consolidated net income of $2.5 million, or $0.04 per share on a fully-diluted basis, for the second quarter of 2014. Consolidated net income for the six months ended June 30, 2015 was $2.1 million, or $0.04 per share on a fully-diluted basis, which compares to a consolidated net loss of $3.1 million, or $0.06 per share, for the comparable period of 2014. The Company’s bottom line results for the second quarter and first six months of 2014 included a $5.5 million payment received as a result of the termination of the Company’s drug assay collaboration with Roche Diagnostics. This $5.5 million payment was recorded as an offset to expenses in the second quarter of 2014. The Company’s bottom line results in 2015 benefited from the increase in product revenues, the AbbVie exclusivity payments, the initial clinical development funding received for the Company’s rapid Ebola test, lower royalty expenses and lower sales and marketing expenses.
- Cash and short-term investments totaled $91.4 million and working capital amounted to $109.7 million at June 30, 2015.
“We are pleased with the record level of revenues reported for the second quarter of 2015 as well as our bottom line results,” said Douglas A. Michels, President and CEO of OraSure Technologies. “Our molecular collection systems business continues the high performance level we have seen in recent quarters and our HCV business continues to grow nicely. We are also making good progress in our efforts to fund and commercialize a rapid Ebola test on our OraQuick® platform. With the first half of the year now complete, I believe we are well positioned to deliver solid growth and full year profitability for 2015.”
Financial Results
Consolidated net product revenues for the second quarter and first six months of 2015 increased 3% and 2% over the comparable periods of 2014, respectively, primarily as a result of higher sales of the Company’s molecular collection systems, OraQuick® HCV and Intercept® products. These increases were partially offset by lower cryosurgical systems and OraQuick® professional HIV product sales.
Consolidated other revenues for the second quarter and first six months of 2015 were $4.1 million and $7.4 million, respectively. Other revenues in the current quarter included $3.4 million of exclusivity payments recognized under the Company’s HCV co-promotion agreement with AbbVie and $714,000 of Ebola-related funding received from the U.S. Department of Health and Human Services Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (“BARDA”). Other revenue in the first six months of 2015 included $6.7 million of exclusivity payments and the $714,000 in BARDA funding. Other revenues in the second quarter and first six months of 2014 included $775,000 of AbbVie exclusivity payments.
Consolidated gross margin for the three and six months ended June 30, 2015 was 68% and 66%, respectively. Consolidated gross margin for the three and six months ended June 30, 2014 was 61% and 60%, respectively. Gross margin for the current quarter and six-month period improved largely as a result of the $4.1 million and $7.4 million in other non-product revenues, respectively. Other revenues contributed approximately 500 basis points to gross margin for both the three and six months ended June 30, 2015 and approximately 100 basis points to gross margin for both the three and six months ended June 30, 2014. Gross margins in 2015 also benefited from a reduction in royalty expense partially offset by an increase in scrap and spoilage costs.
Consolidated operating expenses increased to $17.9 million during the second quarter of 2015 compared to $13.5 million in the comparable period of 2014. For the six months ended June 30, 2015, consolidated operating expenses were $35.3 million, an increase from the $33.1 million reported for the six months ended June 30, 2104. The increases for both the quarter and six-month period were largely due to the absence of the $5.5 million Roche termination payment received in 2014, increased research and development costs and higher costs associated with the AbbVie co-promotion agreement, partially offset by lower promotional expenses for the Company’s OraQuick® In-Home HIV test. Promotional expenses for the OraQuick® In-Home HIV test were $484,000 and $3.0 million for the second quarters of 2015 and 2014, respectively, and $917,000 and $7.6 million for the first six months of 2015 and 2014, respectively.
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