Aug. 06--With a major new Hepatitis C test marketing partnership on the horizon, Bethlehem-based OraSure posted a $2.5 million profit on revenues of $26.4 million in the second quarter, beating analysts' estimates.
That compares to a loss of $5.3 million on revenues of $24.3 million for same period in 2013.
The company reported earnings per share of $.04 Wednesday. That was better than its guidance and analysts' average projection of a 4-cent per share loss.
OraSure attributed the revenue gains to higher sales of its OraQuick HCV test, higher revenues from its molecular collection systems subsidiary, DNA Genotek, improved sales of cryosurgical systems products and higher licensing and product development revenues.
A one-time payment of $5.5 million from Roche Diagnostics related to the termination of a drug testing collaboration that was counted against expenses also helped out with the bottom line.
But CEO Douglas Michels said the big story in the company's future is its recently announced partnership with drugmaker AbbVie to market its rapid Hepatitis test. The value of the deal, details of which were announced today, leads management to project a profit in 2015, a major corporate milestone.
"We believe that we have made the right decisions and the right investments, and that is now going to pay off for the company and its investors," Michels said.
The deal includes $75 million in payments over its life and should contribute to increased sales of the OraQuick HCV test in addition to incentive payments that could hit $55 million.
The company reported a loss of $5.6 million on revenues of $23.5 million in revenue in the first quarter of the year. That translated into earnings per share of minus 10 cents.
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