NEW YORK ─ OraSure Technologies said on Friday that it has entered into a definitive agreement to acquire privately owned UrSure for $3 million in cash and up to $28 million in post-closing contingent payments.
Bethlehem, Pennsylvania-based OraSure said the contingent consideration consists of up to $5 million for certain product development milestones and receipt of regulatory approvals, and up to $23 million for certain revenue and funding milestones.
Boston-based UrSure is developing and commercializing products that measure adherence to HIV medications, including pre-exposure prophylaxis, or PrEP, a daily medication taken to prevent HIV. Laboratory-based tests are needed to measure medication levels in a patient’s urine or blood, and several point-of-care products are in development for that purpose, OraSure said. These products will allow healthcare professionals to assess patient adherence and determine with accuracy if the medication has not been taken as prescribed.
UrSure said it was founded to develop novel diagnostic tests that support patients on their HIV treatment and prevention medications. The firm was founded in 2015 by two physicians who had started a clinic in Philadelphia and recognized that their patients were struggling to consistently take Gilead's Truvada as PrEP.
The UrSure acquisition supports OraSure’s strategy of expanding its product offerings to include additional diagnostic products, particularly point-of-care tests that complement its current infectious disease portfolio and pipeline, OraSure said.