OraSure Secures $205M Contract For OTC COVID-19 Tests

The Defense Logistics Agency has awarded OraSure Technologies Inc OSUR a procurement contract for its InteliSwab COVID-19 Rapid Test for over-the-counter use.
Related Link: OraSure Stock Is Trading Lower As Q2 Earnings, Outlook Trail Estimates.
The estimated value of the contract is $205 million. Under the contract terms, OraSure will provide its InteliSwab COVID-19 Rapid Test to up to 25,000 sites throughout the U.S., and the U.S. federal government will fund the tests.
The contract will run from October 2021 through September 2022.
InteliSwab is a simple 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 FDA Emergency Use Authorizations for professional point-of-care use, prescription home use, and OTC use.
To meet the requirements in the contract, OraSure anticipates having significant incremental manufacturing and operating expenses in the second half of the fiscal year 2021.
Price Action: OSUR stock is down 3.21% at $12.95 during the premarket session on the last check Monday.