OraSure Technologies, Inc. (NASDAQ:OSUR) has reached an agreement with the Bill and Melinda Gates Foundation for the roll out if its OraQuick HIV Self-Test in 50 developing countries. Under the terms of the agreement, the company is to roll out its HIV kits at an affordable price with funding from the foundation.
OraQuick Roll Out
Funding for the four-year Charitable Support Agreement consists of reimbursement-related costs as well as payments based on units sold. Some of the countries that the company is required to make OraQuick HIV self-test kit available to include Zambia, Malawi, and Zimbabwe.
“The support payments provided by the Gates Foundation will help us expand our relationship with PSI and substantially accelerate the adoption of the OraQuick® HIV Self-Test in many more developing countries,” said OraSure CEO Douglas A. Michel’s.
Emilio Emini Director of HIV Program at the Bill and Melinda Gate Foundation expects the initiative to help improve access to self-conducted HIV screening. Making such kits readily available and affordable should also help improve the ability to recognize and treat HIV.
Enhancing in-Home HIV Testing
Funding from the Gates Foundation will allow non-government organizations in the targeted countries to receive the HIV testing kits at reduced costs. The agreement also covers organizations that receive funding from the government or public sector agencies. The aggregate amount up for use is $20 million with OraSure required not to spend over $6 million in a year.
The OraSure agreement is part Gate’s Foundation program related investment that seeks to spur private sector driven innovation. The foundation is also using the initiative to help attract external funding that it plans to use to improve the lives of the most vulnerable societies around the world.
OraSure’s OraQuick HIV Self-Test Kit is designed to allow individuals test themselves of both HIV-1 and HIV-2 with an oral Swab. It is the first and only FDA-approved in-home HIV test kit.
Board Appointment
Separately, OraSure has confirmed the appointment of Mara G. Aspinall into the company’s board of directors. She will serve as a Class II director in addition to serving on the Audit and Compensation Committees. Ms. Aspinall is currently the CEO of Health Catalysts as well as the Executive Chairman of GenePeeks.
OraSure Technologies was up by 10.05% in Tuesday’s trading session to end the day at $17.30 a share.
