OraSure Technologies Announces Settlement of Patent Infringement Lawsuit With Inverness and Church & Dwight
BETHLEHEM, Pa.,
Under the settlement,
- The grant to
OraSure of a worldwide, non-exclusive, royalty- bearing, lateral flow patent license (subject to a royalty-free period) for the OraQuick(R) HIV-1/2 test and other visually- read HIV lateral flow products in the professional market; - The grant to
OraSure of a worldwide, non-exclusive, royalty- bearing, lateral flow patent license (subject to a royalty- free period) for the OraQuick(R) HCV test and other visually read HCV lateral flow products in the professional market; - The grant to
OraSure of a worldwide, non-exclusive, royalty- bearing, license toInverness lateral flow patents for visually-read products for the detection of certain infectious diseases, metabolic disorders, cancer and autoimmune disorders; - The grant to
OraSure of non-exclusive rights to distribute in theUnited States as private label products certain rapid, point-of-care, flu, strep, drugs of abuse and pregnancy tests manufactured byInverness ; - A right of first negotiation during the 120-day period
following the settlement effective date for
OraSure to negotiate the terms for the marketing and distribution of the OraQuick(R) HIV-1/2 test on an exclusive basis in the over-the- counter markets worldwide with the consumer diagnostics joint venture between Proctor & Gamble (NYSE:PG) andInverness ; and - The grant to
Inverness of exclusive distribution rights to the OraQuick(R) HCV test in the employee health services and home healthcare markets and in acute care clinics located in pharmacies and other mass retail outlets in theUnited States .
Updated Financial Guidance
As a result of the litigation settlement, the Company now expects its net loss for the fourth quarter of 2009 to be
About
The
Private Securities Litigation Reform Act of 1995 --
A Caution Concerning Forward-Looking Statements
This press release contains certain forward-looking statements, including with respect to royalties, expenses, net loss per share and products. Actual results could be significantly different. Factors that could affect results include the ability to market and sell products, whether through an internal, direct sales force or third parties; ability to manufacture products in accordance with applicable specifications, performance standards and quality requirements; changes in relationships, including disputes or disagreements, with strategic partners and reliance on strategic partners for the performance of critical activities under collaborative arrangements; failure of distributors or other customers to meet purchase forecasts or minimum purchase requirements for the Company's products; impact of replacing distributors and success of direct sales efforts; inventory levels at distributors and other customers; impact of competitors, competing products and technology changes; impact of the economic downturn, high unemployment and credit crisis; ability to develop, commercialize and market new products; market acceptance of oral fluid testing or other products; changes in market acceptance of products based on product performance and extended shelf life; continued bulk purchases by customers, including governmental agencies, and the ability to fully deploy those purchases in a timely manner; ability to fund research and development and other products and operations; ability to obtain and maintain new or existing product distribution channels; reliance on sole supply sources for critical product components; availability of related products produced by third parties or products required for use of our products; ability to obtain, and timing and cost of obtaining, necessary regulatory approvals for new products or new indications or applications for existing products; ability to comply with applicable regulatory requirements; history of losses and ability to achieve sustained profitability and ability to utilize net operating loss carryforwards or other deferred tax assets; volatility of the Company's stock price; uncertainty relating to patent protection and potential patent infringement claims; uncertainty and costs of litigation relating to patents and other intellectual property; availability of licenses to patents or other technology; ability to enter into international manufacturing agreements; obstacles to international marketing and manufacturing of products; ability to sell products internationally, including changes in international funding sources; loss or impairment of sources of capital; ability to meet financial covenants in agreements with financial institutions; ability to retain qualified personnel; exposure to patent infringement, product liability, and other types of litigation; changes in international, federal or state laws and regulations; customer consolidations and inventory practices; equipment failures and ability to obtain needed raw materials and components; the impact of terrorist attacks and civil unrest; ability to identify, complete and realize the full benefits of potential acquisitions; and general political, business and economic conditions. These and other factors are discussed more fully in the
CONTACT:
Ronald H. Spair, Chief Financial Officer
610-882-1820
Investorinfo@orasure.com
www.orasure.com