OraSure Technologies – Profitable Future In HIV Testing

Orasure oral HIV rapid testing.

Orasure oral HIV rapid testing. (Photo credit: Wikipedia)

OraSure Technologies |

 April2

 

 

OSUR : NASDAQ : US$11.39 | Buy , Target US$15.00

 

Health clinic appetite for rapid HCV testing

 

THESIS: Community health   confirms/ requires – critical importance of rapid point- of-care testing for HIV / HCV.

Highlights

HIV rapid tests increased. A community health center, which uses OraQuick HIV, commented it doubled its HIV rapid test volume last year due to cutbacks at other local public health clinics, as patients migrated seeking care.

HCV rapid test is appealing. The community clinic plans to incorporate rapid HCV testing soon and cited the CDC’s estimate that 25-30% of the 1.2M Americans infected with HIV are also infected with HCV.•

 

Still utilizing risk-based testing. While the clinic mainly offers HCV testing to high risk individuals, it is becoming increasingly aware of age-based screening for baby boomers.

Correctional facility HCV testing.

While budgets are tight and treatments are expensive, the clinic director believes that the entire 2.3M U.S. prison population should be tested for HCV, to minimize the burden on the healthcare system when they are released (~$45M estimated HCV testing opportunity).

Valuation

Our $15 price target is based on a three-year discount to our 2016 revenue estimate ($198M), applying a premium 5.5x P/S multiple and conservative 20% discount.

About these ads
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 2,138 other followers

%d bloggers like this: