OraSure Technologies (OSUR) Stephens 26th Annual Investment Conference summary

Strategic focus and business evolution

• Emphasis on three pillars: strengthening foundation, elevating core, and accelerating profitable growth over the past two years.

• Streamlined operations by consolidating business units and exiting unprofitable segments, including microbiome services and risk assessment, to align with core focus.

• Exited microbiome services in Q3 and risk assessment by year-end, removing $10 million in costs and focusing on profitable kit business.

• COVID testing revenue has declined to endemic levels, with future quarterly revenue expected below $1 million.

• Management now has increased capacity to pursue growth opportunities and offensive strategies.

Core offerings and growth outlook

• Focused on point-of-care diagnostics, sample management collection devices, and precision health, leveraging operational and regulatory strengths.

• Diagnostics portfolio targets infectious disease, sexual health, and respiratory areas, with recent partnerships expanding offerings (e.g., syphilis test with Diagnostics Direct).

• Pursuing a holistic approach to syndemic conditions (HIV, HCV, syphilis) and exploring additional areas like chlamydia and gonorrhea.

• Molecular products business diversifying customer base beyond ancestry testing to pharma, biotech, and clinical use, aiming for recurring revenue.

• Non-invasive liquid biopsy (saliva, urine, stool) and blood collection devices represent significant market opportunities, with launches expected in 2025.

Partnerships, innovation, and market trends

• Sapphiros partnership and investment expected to contribute to top-line growth in 2025, with innovations in lateral flow and small-volume blood collection.

• Diagnostics market trend moving closer to the patient, with self-collection and point-of-care devices enabling broader access.

• New blood proteomics product launching in the second half of next year, targeting hundreds of millions in addressable market.

• Operational capacity at 30%, allowing for significant volume growth without major new investments.

• Gross margins expected to rise from mid-40s to 50s in coming years as volume increases and efficiencies are realized.