(RTTNews) - OraSure Technologies Inc. (OSUR) said that the Defense Logistics Agency has awarded the company a procurement contract for its InteliSwab COVID-19 Rapid Test for over-the-counter use, which the Defense Logistics Agency estimated to have a value of $205 million.
As per the terms of the contract, OraSure will provide its InteliSwab COVID-19 Rapid Test to up to 25,000 sites throughout the United States and the tests will be funded by the U.S. federal government. The contract will run from October 2021 through September 2022.
InteliSwab is a simple "swab, swirl, see" test that uses an integrated swab to self-collect a sample from the lower nostrils. The result appears right on the test stick within 30 minutes, with no instruments, batteries, smartphone or laboratory analysis needed. It has three Emergency Use Authorizations from the Food and Drug Administration for professional point-of-care use, prescription home use, and over-the-counter use.
The company anticipates having significant incremental manufacturing and operating expenses in the second half of fiscal year 2021. Additionally, given the volume ramp implied in the contract, the Company expects the preponderance of revenue associated with the contract to come in calendar year 2022.
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