Wednesday, January 17, 2007

OraSure Sees Oral Hepatitis C Test Trials Ending In 2007

OraSure Technologies Inc.'s (OSUR) chief executive Thursday said he expects clinical trials of a rapid oral test for the detection of hepatitis C to be completed by the end of this year.

Once the trials of the test - being jointly developed by OraSure and Schering-Plough Corp. (SGP) - are completed, the company will apply for marketing approval in the U.S., and in Europe soon thereafter.

Last week, Schering-Plough and Bethlehem,Pa.-based OraSure - which already makes the only approved HIV rapid oral test - inked a two-year deal to jointly develop and market the oral hepatitis C test.

The CEO also said OraSure was looking globally to acquire companies with complementary product profiles and with new technologies related to the treatment of infectious diseases.

"We have $90 million in cash right now and are looking to deploy it," Michels said. "We are actively evaluating potential acquisitions and technology-licensing agreements."

Michels said the development of novel treatments for hepatitis C that cut down on treatment time would be a boost to the market's acceptance of the company's test.

Vertex Pharmaceuticals Inc. (VRTX) is engaged in developing such a therapy, as is Schering-Plough, which makes the current standard treatment for hepatitis C, pegylated interferon, called Peg-Intron, which is often used with ribavirin.

The hepatitis C virus is the most common blood-borne infection in the U.S., with around 4 million people suffering from it. It affects as many as 170 million people worldwide. It is the main reason for liver transplants in the U.S.

Michels said as many as 2 million to 3 million Americans who may have the virus remain untested.

While new infection rates have declined in the U.S., and blood is now screened for the virus, those who caught it through blood transfusions in the late 1970s and early 1980s are approaching treatment age, and many more in the population may have the virus but remain unchecked as symptoms can take up to 20 years to appear.

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