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Abbott Deal expands reach of OraSure's HIV test
  Thursday, April 20, 206
BETHLEHEM | OraSure Technologies Inc. said a deal announced Wednesday will make its rapid HIV test available to about 3,000 additional organizations.
Health care contracting services company Novation signed a deal with Abbott Laboratories to make OraQuick Advance available throughout Novation's network, OraSure said in a news release.
OraQuick is the Bethlehem-based company's rapid HIV test, which can test for antibodies of the virus in about 20 minutes. Abbott is the exclusive distributor of the product in the United States.
The agreement should expand OraQuick use in certain hospitals, OraSure President and CEO Doug Michels said in a statement.
"We look forward to working with Abbot and Novation to make the OraQuick Advance test available as a valuable tool in the fight against HIV/AIDS -- particularly in hospital emergency departments and labor and delivery settings," Michels said.
Novation is a unit of VHA Inc. and the University HealthSystem Consortium. The Novation health care network includes about 3,000 members, OraSure said, mostly nonprofit health care organizations.
Abbott's contract with Novation began on April 1 and will run through March 31, 2009.
OraQuick has received Food and Drug Administration approval for use on oral fluid or blood samples. The company is now seeking FDA approval to sell OraQuick over the counter.
Shares of OraSure rose 27 cents, or 2.6 percent, to close at $10.58 in trading Wednesday on the Nasdaq stock market.
Novation Signs New Technology Agreement With Abbott Diagnostics
IRVING, TX -- (MARKET WIRE) -- 04/18/2006 -- Novation, the health care contracting services company of VHA Inc., and the University HealthSystem Consortium (UHC), has signed a single-source, new technology agreement with Abbott Diagnostics for the OraQuick Rapid HIV Test Kit.
The agreement began on April 1, 2006 and will run through March 31, 2009. The agreement was not competitively bid, it was awarded through Novation's new-technology evaluation process, which accelerates the review process so new and improved technologies do not have to wait for a scheduled competitive bid. The process allows VHA and UHC members speedier access to savings on the latest FDA approved medical technology.
The OraQuick Rapid HIV Test is a single-use device intended to provide qualitative results for human immunodeficiency virus type 1 (HIV-1) and type 2 (HIV-2) using oral fluid, finger stick, whole blood and plasma specimens. The product is deemed a moderately complex, CLIA waived test, which means it can be used in a physician's office setting as well as in the clinical laboratory. Other tests on the market do not have CLIA-waived status.
"As a market leader, we want to ensure that our members have visibility to latest innovations in medical technology," said Cathy Denning, senior director, contract and program services at Novation. "We believe that the OraQuick Rapid HIV Test Kit truly represents the next generation of HIV antibody tests and will offer our members incremental benefits in the areas of safety and efficiency."
About Novation
Based in Irving, Texas, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 3,000 members of VHA Inc. and the University Health System Consortium (UHC), two national health care alliances. Through its public competitive bid process, Novation develops and manages contracts with more than 700 suppliers, both large and small. By combining scale and agility with clinical knowledge and product expertise, Novation offers the most extensive range of innovative contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical tools, order management and online supplier connectivity. VHA and UHC members used Novation's contracts to purchase more than $25 billion in supplies in 2005.
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