OraSure Technologies, Inc. (NASDAQ:OSUR), a leader in point of care
diagnostic tests and specimen collection devices, today announced a
succession plan for its President and Chief Executive Officer
(“CEO”) and for its Chief Financial Officer and Chief Operating
Officer. The Company also announced updated revenue guidance
for the fourth quarter of 2017.
CEO Succession
Under the succession plan, the Company’s Board
of Directors has appointed Stephen S. Tang, Ph.D., as the Company’s
new President and Chief Executive Officer, effective as of April 1,
2018. Dr. Tang will replace Douglas A. Michels, who has
chosen to retire as President and CEO and as a Board member on
March 31, 2018.
Dr. Tang has been a member of the Company’s
Board of Directors since 2011 and has served as Chairman of the
Board since November 2016. With his appointment as President
and CEO on April 1st, Dr. Tang will continue as a Director, but
will no longer serve as Chairman or as a member of any Board
committee.
Since January 2008, Dr. Tang has served as
President and Chief Executive Officer of The University City
Science Center, an urban research park and business incubator owned
by over thirty leading universities, medical schools and health
networks in the greater Philadelphia, Pennsylvania area. In this
role, Dr. Tang led the transformation of the Science Center into a
world-class, global innovation hub for the life sciences industry,
focusing on the development and commercialization of innovative
technologies and products.
Prior to that, Dr. Tang was the Group Vice
President and General Manager, Life Sciences of Olympus America,
Inc., where he ran the Life Science group at Olympus with leading
brands in instrumentation and total solutions for in vitro
diagnostics, microscopes and micro-imaging, and enabling
technologies for translational and personalized medicine. Dr.
Tang also served as Vice President, Life Science Business
Development at Olympus where he was responsible for mergers,
acquisitions and strategic alliances, along with strategic business
planning.
Prior to his time at Olympus, Dr. Tang served as
President, CEO and Director at Millennium Cell Inc., a developer
and manufacturer of hydrogen batteries and fuel cells. Dr.
Tang led Millennium through its initial public offering and helped
transform Millennium from a startup laboratory into a viable
publicly-traded company.
Dr. Tang holds a B.S. degree in Chemistry
from The College of William and Mary, an M.S. degree and Ph.D. in
Chemical Engineering from Lehigh University and an MBA from The
Wharton School of Business at the University of Pennsylvania.
"We are delighted to welcome Steve as the
Company’s new President and CEO," said Charles W. Patrick, Chairman
of the Company’s Nominating and Corporate Governance
Committee. "Steve’s vast technical and business experience,
both in the private sector and as a public company CEO, and
particularly his long and successful track record in developing and
commercializing innovative technologies in the life sciences area,
make him the ideal executive to lead OraSure into the future.
With his service on the Board for the past six years, Steve also
has an intimate knowledge of the Company and its strategic
priorities and has developed strong relationships with the
management team. We look forward to working with Steve in his
new role as CEO and are confident that he will be successful in
building on the Company’s strong business momentum."
“Although he is not retiring for several months,
I would also like to thank Doug Michels, on behalf of the Board and
the Company, for his many years of leadership and service,”
continued Mr. Patrick. “Since Doug joined OraSure in 2004, we
have achieved many significant milestones and the Company has grown
substantially from revenues of approximately $40 million in 2003 to
more than $165 million projected for 2017 and from a market
capitalization of approximately $352 million in 2003 to $1.1
billion at the end of 2017. Many of our products were the
first of their kind to receive regulatory approval and be
commercialized and our expansion into the high growth molecular
market has greatly contributed to our business. These
achievements were due in no small measure to Doug’s vision and
leadership. We wish Doug, his wife, Susan, and his family
nothing but good health and much happiness in their
retirement.”
CFO/COO
Retirement
Ronald H. Spair, the Company’s Chief Financial
Officer and Chief Operating Officer, has also chosen to retire from
the Company later this year. Mr. Spair’s specific retirement
date has not been set and will be determined based on the Company’s
timing for the appointment of a new Chief Financial Officer.
Mr. Spair has served as Chief Financial Officer since 2001 and as
Chief Operating Officer and a member of the Board of Directors
since 2006. Prior to his retirement date, Mr. Spair will
continue to perform his normal duties and provide assistance to the
Company in identifying his successor.
“On behalf of the Board and the Company, I would
also like to thank Ron for his service and contributions to the
Company over many years,” said Mr. Michels. “Ron has been
instrumental in the growth of OraSure and in particular its current
strong financial profile. We have greatly benefited from his
unwavering dedication and his sound financial stewardship.”
Updated Q4 Revenue
Guidance
The Company expects that its revenues for the fourth quarter of
2017 will be higher than previously projected and is now
forecasting consolidated net revenues of at least $50 million for
the quarter.
Conference Call
The Company will host a conference call and
audio webcast to discuss the organizational changes and updated
financial guidance described above, beginning today at 8:00 a.m.
Eastern Time (5:00 a.m. Pacific Time). On the call will be Douglas
A. Michels, President and Chief Executive Officer, and Dr. Stephen
S.Tang. The call will include remarks by Mr. Michels and Dr. Tang
and a question and answer session.
In order to listen to the conference call,
please either dial (844) 831-3030 (Domestic) or (315) 625-6887
(International) and reference Conference ID #7694208 or go to
OraSure Technologies' web site, www.orasure.com, and click on the
Investor Relations page. Please click on the webcast link and
follow the prompts for registration and access 10 minutes prior to
the call. A replay of the call will be archived on OraSure
Technologies' web site shortly after the call has ended and will be
available for seven days. A replay of the call can also be accessed
until January 11, 2018, by dialing 855-859-2056 (Domestic) or
404-537-3406 (International) and entering the Conference ID
#7694208.
About OraSure
Technologies
OraSure Technologies is a leader in the
development, manufacture and distribution of point of care
diagnostic and collection devices and other technologies designed
to detect or diagnose critical medical conditions. Its
first-to-market, innovative products include rapid tests for the
detection of antibodies to HIV and HCV on the OraQuick® platform,
oral fluid sample collection, stabilization and preparation
products for molecular diagnostic applications, and oral fluid
laboratory tests for detecting various drugs of abuse. OraSure's
portfolio of products is sold globally to various clinical
laboratories, hospitals, clinics, community-based organizations and
other public health organizations, research and academic
institutions, distributors, government agencies, physicians'
offices, commercial and industrial entities and consumers. The
Company's products enable healthcare providers to deliver critical
information to patients, empowering them to make decisions to
improve and protect their health.
For more information on OraSure Technologies,
please visit www.orasure.com.
Important Information
This press release contains certain
forward-looking statements, including with respect to expected
revenues. Forward-looking statements are not guarantees of
future performance or results. Known and unknown factors that could
cause actual performance or results to be materially different from
those expressed or implied in these statements include, but are not
limited to: ability to market and sell products, whether through
our internal, direct sales force or third parties; ability to
manufacture products in accordance with applicable specifications,
performance standards and quality requirements; 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; ability to effectively resolve warning letters, audit
observations and other findings or comments from the U.S. Food and
Drug Administration (“FDA”) or other regulators; changes in
relationships, including disputes or disagreements, with strategic
partners or other parties and reliance on strategic partners for
the performance of critical activities under collaborative
arrangements; ability to meet increased demand for our products;
impact of increased reliance on U.S. government contracts; failure
of distributors or other customers to meet purchase forecasts,
historic purchase levels or minimum purchase requirements for our
products; impact of replacing distributors; inventory levels at
distributors and other customers; ability of the Company to achieve
its financial and strategic objectives and continue to increase its
revenues, including the ability to expand international sales;
ability to identify, complete, integrate and realize the full
benefits of future acquisitions; impact of competitors, competing
products and technology changes; impact of negative economic
conditions, high unemployment levels and poor credit conditions;
reduction or deferral of public funding available to customers;
competition from new or better technology or lower cost products;
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 or other
factors, including changes in testing guidelines, algorithms or
other recommendations by the Centers for Disease Control and
Prevention (“CDC”) or other agencies; 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 products and
components; availability of related products produced by third
parties or products required for use of our products; history of
losses and ability to achieve sustained profitability; ability to
utilize net operating loss carry forwards 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
the impact of changes in international funding sources and testing
algorithms; ability to successfully renew contracts or enter into
new contracts with existing customers; adverse movements in foreign
currency exchange rates; loss or impairment of sources of capital;
ability to meet financial covenants in credit agreements; ability
to attract and retain qualified personnel; exposure to 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; and general political, business and
economic conditions. These and other factors are discussed
more fully in the Company’s Securities and Exchange Commission
(“SEC” filings, including our registration statements, Annual
Report on Form 10-K for the year ended December 31, 2016, Quarterly
Reports on Form 10-Q, and other filings with the SEC.
Although forward-looking statements help to provide information
about future prospects, readers should keep in mind that
forward-looking statements may not be reliable. The forward-looking
statements are made as of the date of this call, and we undertake
no duty to update these statements.
Company contact:
Jack E. Jerrett |
Senior Vice President,
General Counsel and Secretary |
(610) 882-1820 |
jjerrett@orasure.com |
www.orasure.com |
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/afc81428-674b-4f5a-a2f5-ac5f121dddcf
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