NEW YORK – OraSure Technologies reported after the close of the market on Wednesday that its third quarter revenues increased 12 percent year over year. Excluding COVID-19 product-related sales, revenues grew by 37 percent.
For the three months ended Sept. 30, the point-of-care diagnostics company reported total revenues of $53.9 million, up from $48.0 million in the prior-year quarter. The Bethlehem, Pennsylvania-based company beat the consensus Wall Street estimate of $47.5 million.
OraSure "laid the foundation to dramatically scale the size of the company in fiscal year 2022," Stephen Tang, the firm's CEO, said in a statement.
Specifically, the firm signed three major contracts with the US government in Q3: $205 million for InteliSwab COVID-19 Rapid Test procurement, $109 million for InteliSwab manufacturing capacity build-out, and $13.6 million to pursue full FDA 510(k) clearance for InteliSwab.
"These contracts position OraSure as an important part of the government's global pandemic response and will lower our cost per product and broaden our customer reach," Tang said.
The firm's product and service revenues for the molecular solutions business declined 4 percent to $30.4 million from $31.7 million in Q3 2020.
Within molecular solutions, genomics revenues increased 125 percent to $19.0 million from $8.5 million. Microbiome product revenues increased 13 percent to $1.7 million from $1.5 million.
The firm also had $6.3 million in sales related to COVID-19 molecular testing, down 67 percent from $18.8 million in the year-ago period.
Also in molecular solutions, the laboratory services revenues increased 6 percent to $2.4 million from $2.3 million, while other products and services in this business quadrupled to $576,000 from $141,000.
The firm's Q3 diagnostics revenues jumped 44 percent to $23.5 million from $16.3 million a year earlier.
Within the infectious disease testing business of OraSure's diagnostics business, sales of OraQuick tests for HIV and hepatitis C were down 2 percent to $12.7 million from $13.0 million in Q3 2020.
Total HIV sales declined 7 percent to $10.0 million from $10.8 million as domestic HIV testing sales fell 12 percent to $3.4 million from $3.9 million and international HIV testing sales declined 4 percent to $6.5 million from $6.9 million.
Total HCV testing sales increased 22 percent to $2.7 million from $2.2 million in the year-ago quarter due to a 54 percent increase in domestic HCV testing sales to $1.8 million from $1.2 million offset by a 14 percent decrease in international HCV testing revenues to $888,000 from $1.0 million.
Also within infectious disease testing, risk assessment testing revenues increased 17 percent to $2.7 million from $2.3 million and other non-product revenues declined 70 percent to $230,000 from $774,000.
Within infectious disease testing, COVID-19 test sales were $7.7 million, up from $63,000 a year ago. Its other infectious disease revenues declined 16 percent to $195,000 from $231,000.
The firm's Q3 net loss was $15.0 million, or $.21 per share, down from a net income of $1.0 million, or $.01 per share, in the year-ago period. Loss per share fell short of the consensus Wall Street estimate for a loss of $.04 per share.
OraSure's Q3 R&D expenses rose 8 percent to $8.6 million from $8.0 million, and its SG&A costs increased 47 percent to nearly $26.4 million from $18.0 million.
The company ended the quarter with $134.9 million in cash and cash equivalents and $50.1 million in short-term investments.
The company raised its full-year guidance. It now expects net revenues of $230 million to $233 million, up from previous guidance of $230 million.
In Thursday morning trading on the Nasdaq, OraSure's stock was down nearly 6 percent to $10.50.