GlobeNewswire08.19.19
OraSure Technologies Inc., a developer of point-of-care diagnostic tests and specimen collection devices, announced the sale of its cryosurgical systems business to CryoConcepts, LP for an aggregate purchase price of $12 million in cash. The transaction includes the transfer of OraSure’s professional Histofreezer product line and several private label cryosurgical products sold in the consumer market, along with related patents and trademarks, customer contracts, and goodwill associated with the business.
“We are pleased to have completed the sale of our cryosurgical systems business. The sale represents a key part of our innovation-driven growth strategy to prioritize our product portfolio and focus our resources on growing our core Molecular Solutions and Infectious Disease businesses through both organic growth and acquisition,” said OraSure President and CEO, Stephen Tang, Ph.D.
“Our management team first introduced Histofreezer to the U.S. in the early 90’s, so we have deep experience in the cryosurgical market,” said Sam Niedbala, Ph.D., CEO of CryoConcepts, LP. “Our plan is to leverage the Histofreezer brand to accelerate our introduction of a new generation of cryosurgical products to the professional and consumer markets on a global basis. This acquisition also keeps and creates jobs in the Lehigh Valley and is a testament to the partnerships and support by our investors, Embassy Bank, and programs like the Southside KIZ. We are excited to have the Histofreezer become an important part of our product portfolio and strategy,” he added.
Updated Third Quarter and Full-Year 2019 Guidance
As a result of the sale of the cryosurgical systems business, the company is revising its third quarter 2019 guidance from $39.0 million to $40.5 million in net revenues and net income of approximately $0.04 per share to $0.05 per share, to $37.5 million to $39.0 million in net revenues and approximately $0.19 per share to $0.20 per share in net income, of which approximately $0.16 per share is attributable to the estimated gain on the sale of the business. For full-year 2019, giving effect to the sale of the cryosurgical systems business, the company is revising its guidance of $165.0 million to $170.0 million in net revenue and approximately $0.24 to $0.26 per share in net income to $160.0 million to $165.0 million in net revenues and approximately $0.36 per share to $0.38 per share in net income, of which approximately $0.16 per share is attributable to the estimated gain on the sale of the business. These projections do not account for the impact of changes in the fair value of acquisition-related contingent consideration or any potential transaction costs related to future business development activity since those items cannot be fully determined at this time.
transaction includes transfer of OraSure’s professional Histofreezer product line and several private label cryosurgical products sold in consumer market.
“We are pleased to have completed the sale of our cryosurgical systems business. The sale represents a key part of our innovation-driven growth strategy to prioritize our product portfolio and focus our resources on growing our core Molecular Solutions and Infectious Disease businesses through both organic growth and acquisition,” said OraSure President and CEO, Stephen Tang, Ph.D.
“Our management team first introduced Histofreezer to the U.S. in the early 90’s, so we have deep experience in the cryosurgical market,” said Sam Niedbala, Ph.D., CEO of CryoConcepts, LP. “Our plan is to leverage the Histofreezer brand to accelerate our introduction of a new generation of cryosurgical products to the professional and consumer markets on a global basis. This acquisition also keeps and creates jobs in the Lehigh Valley and is a testament to the partnerships and support by our investors, Embassy Bank, and programs like the Southside KIZ. We are excited to have the Histofreezer become an important part of our product portfolio and strategy,” he added.
Updated Third Quarter and Full-Year 2019 Guidance
As a result of the sale of the cryosurgical systems business, the company is revising its third quarter 2019 guidance from $39.0 million to $40.5 million in net revenues and net income of approximately $0.04 per share to $0.05 per share, to $37.5 million to $39.0 million in net revenues and approximately $0.19 per share to $0.20 per share in net income, of which approximately $0.16 per share is attributable to the estimated gain on the sale of the business. For full-year 2019, giving effect to the sale of the cryosurgical systems business, the company is revising its guidance of $165.0 million to $170.0 million in net revenue and approximately $0.24 to $0.26 per share in net income to $160.0 million to $165.0 million in net revenues and approximately $0.36 per share to $0.38 per share in net income, of which approximately $0.16 per share is attributable to the estimated gain on the sale of the business. These projections do not account for the impact of changes in the fair value of acquisition-related contingent consideration or any potential transaction costs related to future business development activity since those items cannot be fully determined at this time.
transaction includes transfer of OraSure’s professional Histofreezer product line and several private label cryosurgical products sold in consumer market.