OraSure Technologies, Inc. OSUR recently announced the acquisition of Sherlock Biosciences, Inc., a global health company bringing next-generation diagnostics to consumers and healthcare providers.

This acquisition enhances OraSure’s innovation pipeline by incorporating Sherlock Biosciences’ molecular diagnostics platform. This platform delivers rapid results with high sensitivity and specificity in a disposable format ideal for over-the-counter use.

Likely Trend of OSUR Stock Following the News

Following the announcement, shares of the company moved 1.4% north to $3.69 on Tuesday. In the past six months,OSUR’s shares have lost 12.5% against the industry’s growth of 8.6%. The S&P 500 has gained 10.4% in the same time frame.

The acquisition of Sherlock Biosciences positions OSUR for potential price growth by expanding its product portfolio with innovative molecular diagnostics designed for rapid and over-the-counter use. This strategic move allows OraSure to tap into the growing demand for accessible, consumer-friendly healthcare solutions, driving revenue growth and market share expansion. Henceforth, we expect market sentiment to continue to remain positive surrounding this news announcement.

Meanwhile, OSUR currently has a market capitalization of $275.3 million. The company has surpassed the Zacks Consensus Estimate in all the trailing four quarters delivering an average surprise of 69.4%.

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More on the Acquisition Benefits of OSUR

The acquisition of Sherlock Biosciences is likely to bring significant benefits to OraSure by integrating a novel molecular diagnostics platform into its innovation pipeline. Sherlock Biosciences’ platform offers rapid results with high sensitivity and specificity in a disposable format, making it ideal for over-the-counter (OTC) usage. This strategic addition aligns with OraSure’s focus on consumer-friendly diagnostic solutions and positions the company to meet the growing demand for accessible healthcare technologies. It also expands OraSure’s capabilities in the molecular diagnostics market, enabling the company to serve a broader range of customers in both professional and OTC settings.

Sherlock Biosciences’ first molecular self-test focuses on detecting Chlamydia Trachomatis (CT) and Neisseria Gonorrhoeae (NG), which will enhance OraSure’s range of rapid diagnostic tools for sexually transmitted infections (STIs), pending regulatory approvals. This test is designed to deliver results in under 30 minutes by analyzing DNA and RNA from self-collected swabs using a simple isothermal amplification process. Additionally, Sherlock Biosciences is developing other molecular tests and advanced technologies, including Ambient Temperature Amplification and CRISPR-based tools, which aim to lower costs and improve the performance of its diagnostic platforms.

Sherlock Biosciences’ CT/NG self-test is currently undergoing clinical studies and is planned for FDA submission by the end of 2025. If approved, the test is expected to generate revenues in 2026, supported by OraSure’s established infrastructure, commercial expertise, and strong customer network, driving growth for the company.

Favorable Industry Prospects for OSUR

Per a report by Global Market Insights, the global CT/NG testing market was valued at $1.5 billion in 2023 and is anticipated to witness a CAGR of 7.1% between 2024 and 2032. The growth is likely to be driven by the increasing incidence of STIs and the growing awareness and screening programs.

Since most CT/NG tests in the United States are performed in a centralized lab, the launch of a quick and inexpensive self-test could lead to significant incremental growth in the market. Additionally, OraSure is well-represented in STI screening, which is a major function of public health channels.

OSUR’s Zacks Rank & Stocks to Consider

OSUR carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.

Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.

Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.

ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.

Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.

ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.

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