Shares of OraSure Technologies Inc (NASDAQ:OSUR) climbed 7.4% today after news that Regeneron Pharmaceuticals (NASDAQ:REGN) has been named the successful bidder in the bankruptcy auction for 23andMe, a customer of OraSure. Evercore ISI analyst Vijay Kumar highlighted that the acquisition should mitigate downside risks for OraSure, as 23andMe is expected to continue being a significant customer.
The acquisition, announced on May 19, 2025, involves Regeneron purchasing 23andMe’s assets for $256 million, with the intention to maintain its consumer genetics business. Kumar’s analysis suggests that this move removes the scenario where OraSure’s contributions from 23andMe would drop to zero. Instead, 23andMe will likely remain a meaningful customer for OraSure going forward.
Previously, there were concerns that OraSure’s revenue from 23andMe, estimated at around $13 million in 2024, would cease in 2025, negatively impacting the company’s top line by approximately 9%. However, Kumar now expects a modest upside to OraSure’s financial model, although he notes limited visibility into stocking dynamics could affect contributions through the remainder of 2025.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.