OraSure Technologies Terminates Assay Collaboration Agreement with Roche Diagnostics
OraSure Technologies (NASDAQ: OSUR) announced today that its assay collaboration agreement with Roche Diagnostics (OTC: RHHBY) has been terminated. As part of the termination, Roche will continue to supply certain of the assays developed under that collaboration on a transitional basis for use with OraSure's existing Intercept® collection device.
Under the termination agreement, Roche will make an initial payment of $8.3 million to OraSure, will provide certain transitional product support services and will continue to supply the five FDA-cleared assays for a period of up to five years. OraSure has the right to stop the supply of assays prior to the end of the five-year period and could receive payment of up to an additional $5.5 million from Roche depending on how early in that five-year period the supply obligation is ended.
OraSure also announced today (http://phoenix.corporate-ir.net/phoenix.zhtml?c=99740&p=irol-newsarticle&ID=1878751) that it has reached an agreement with another party to develop and supply up to 12 homogenous fully automated oral fluid drugs of abuse assays to be used with a new Intercept® oral fluid specimen collection device. This new agreement will replace the terminated collaboration with Roche.
Updated Financial Guidance
As a result of the termination agreement announced today,