OraSure Technologies Inc. (OSUR, Financial) filed Quarterly Report for the period ended 2009-09-30.
OraSure Technologies Inc. is the market leader for oral fluid diagnostics. The Company develops manufactures and markets medical devices and diagnostic products for use by insurance companies public health agencies clinical laboratories physicians' offices and workplace sites. Orasure Technologies Inc. has a market cap of $151.8 million; its shares were traded at around $3.31 with and P/S ratio of 2.1.
Cash flow provided by operating activities for the nine months ended September 30, 2009 was $2.7 million, an improvement of $6.4 million compared to the $3.7 million used in operating activities for the nine months ended September 30, 2008. As of September 30, 2009, we had $83.0 million in cash, cash equivalents and short-term investments, compared to $82.5 million at December 31, 2008.
Revenues derived from products sold to customers outside the U.S. were $3.9 million and $2.6 million, or 18% and 16% of total revenues, in the third quarters of 2009 and 2008, respectively. Because the majority of our international sales are denominated in U.S. dollars, the impact of fluctuating foreign currency exchange rates has not been material to our operating results.
Sales to the infectious disease testing market increased 39% to $13.5 million in the third quarter of 2009. OraQuickĀ® sales totaled $13.2 million and $8.9 million in the third quarters of 2009 and 2008, respectively. Sales of our OraSureĀ® oral fluid collection device totaled $358,000 and $830,000 in the third quarters of 2009 and 2008, respectively.
Sales into the hospital market increased 75% to $3.2 million during the third quarter of 2009 as compared to $1.8 million in 2008. On January 1, 2009, we switched to a direct sales model for the U.S. hospital market as a result of the termination of our distribution agreement with Abbott Laboratories at the end of 2008. The increase in revenues in the hospital market during the current period is primarily due to higher average selling prices realized under our direct sales model and the elimination of a $400,000 backlog of hospital orders for our OraQuick ADVANCEĀ® Rapid HIV-1/2 antibody test, which existed at June 30, 2009.
Sales of our HistofreezerĀ® product to physicians offices in the United States increased 35% to $1.2 million in the third quarter of 2009, as compared to $903,000 in 2008 largely due to fluctuations in distributor ordering patterns, a pricing increase enacted in certain distributor contract renewals, and a decrease in product diversion from international sources as described below when compared to the same period in 2008. Sales of HistofreezerĀ® in the international market decreased 16% or $64,000 in the third quarter of 2009, as compared to the third quarter of 2008. The selling prices for our HistofreezerĀ® product are lower in some foreign countries due to differences in the healthcare systems in those countries. During 2008 and early 2009, some distributors in these countries purchased English-labeled HistofreezerĀ® product and resold it into the domestic distribution network to distributors who employ alternate sourcing programs. The decrease in sales in the international market in the third quarter of 2009 is largely due to the discontinuance of sales to one of these foreign distributors.
Read the The complete ReportOSUR is in the portfolios of PRIMECAP Management.
OraSure Technologies Inc. is the market leader for oral fluid diagnostics. The Company develops manufactures and markets medical devices and diagnostic products for use by insurance companies public health agencies clinical laboratories physicians' offices and workplace sites. Orasure Technologies Inc. has a market cap of $151.8 million; its shares were traded at around $3.31 with and P/S ratio of 2.1.
Highlight of Business Operations:
During the nine months ended September 30, 2009, our total revenues were $56.1 million, which represents a 4% increase from the same period in 2008. Our net loss for the nine months ended September 30, 2009 was $5.0 million or $0.11 per share, compared to a net loss of $2.0 million or $0.04 per share for the nine months ended September 30, 2008. Our net loss for the first nine months of 2009 includes a $3.0 million pre-tax charge for the impairment of patents and product rights and our net loss for the first nine months of 2008 includes a $4.9 million pre-tax payment received from Schering-Plough Healthcare Products, Inc. (Schering-Plough) to resolve a patent infringement lawsuit.Cash flow provided by operating activities for the nine months ended September 30, 2009 was $2.7 million, an improvement of $6.4 million compared to the $3.7 million used in operating activities for the nine months ended September 30, 2008. As of September 30, 2009, we had $83.0 million in cash, cash equivalents and short-term investments, compared to $82.5 million at December 31, 2008.
Revenues derived from products sold to customers outside the U.S. were $3.9 million and $2.6 million, or 18% and 16% of total revenues, in the third quarters of 2009 and 2008, respectively. Because the majority of our international sales are denominated in U.S. dollars, the impact of fluctuating foreign currency exchange rates has not been material to our operating results.
Sales to the infectious disease testing market increased 39% to $13.5 million in the third quarter of 2009. OraQuickĀ® sales totaled $13.2 million and $8.9 million in the third quarters of 2009 and 2008, respectively. Sales of our OraSureĀ® oral fluid collection device totaled $358,000 and $830,000 in the third quarters of 2009 and 2008, respectively.
Sales into the hospital market increased 75% to $3.2 million during the third quarter of 2009 as compared to $1.8 million in 2008. On January 1, 2009, we switched to a direct sales model for the U.S. hospital market as a result of the termination of our distribution agreement with Abbott Laboratories at the end of 2008. The increase in revenues in the hospital market during the current period is primarily due to higher average selling prices realized under our direct sales model and the elimination of a $400,000 backlog of hospital orders for our OraQuick ADVANCEĀ® Rapid HIV-1/2 antibody test, which existed at June 30, 2009.
Sales of our HistofreezerĀ® product to physicians offices in the United States increased 35% to $1.2 million in the third quarter of 2009, as compared to $903,000 in 2008 largely due to fluctuations in distributor ordering patterns, a pricing increase enacted in certain distributor contract renewals, and a decrease in product diversion from international sources as described below when compared to the same period in 2008. Sales of HistofreezerĀ® in the international market decreased 16% or $64,000 in the third quarter of 2009, as compared to the third quarter of 2008. The selling prices for our HistofreezerĀ® product are lower in some foreign countries due to differences in the healthcare systems in those countries. During 2008 and early 2009, some distributors in these countries purchased English-labeled HistofreezerĀ® product and resold it into the domestic distribution network to distributors who employ alternate sourcing programs. The decrease in sales in the international market in the third quarter of 2009 is largely due to the discontinuance of sales to one of these foreign distributors.
Read the The complete ReportOSUR is in the portfolios of PRIMECAP Management.
