BETHLEHEM, Pa. — OraSure Technologies Inc. and three other companies have been selected to provide rapid Covid-19 tests under a contract with the U.S. Department of Defense.
Bethlehem-based OraSure shares the one-year contract, worth up to $803 million, with Quidel Corp., Access Bio Inc. and iHealth Labs. The one-year agreement is an “indefinite delivery/indefinite quantity” contract, so the total number of tests to be purchased is not defined.
“This was a competitive acquisition with 13 responses received,” according to a Defense Department statement released Tuesday. The contract ends November 21, 2023, and the federal agency that will use the Covid tests is the Department of Health and Human Services.
69 News has contacted OraSure for comment.
Carrie Eglinton Manner, CEO of OraSure, who took over on June 4, said the company was looking to cut costs and be more efficient. In a conference call with industry analysts, she said “footprint consolidation,” the more efficient use of space, is also being explored.
2022 has been a busy year for OraSure. The company has had three CEOs, including an interim chief; engaged in an unsuccessful search for “strategic alternatives” and saw its share price plummet.
On the bright side, OraSure opened its “factory of the future” in Bethlehem Township and reported third-quarter adjusted net income of $9.7 million, or 13 cents per share, up from the loss of the previous year. The company also achieved its goal of positive operating cash flow in the third quarter, ahead of schedule.
OraSure is based in South Bethlehem and has a branch office in Ottawa, Canada.
The company’s shares are traded on the NASDAQ market under the symbol OSUR. They closed Wednesday at $4.95. Over the past 52 weeks, shares have traded as high as $9.77 and as low as $2.62.