OraSure's Stock Drops After Co-promotion Pact With AbbVie Ends Early

Shares of OraSure Technologies Inc. dropped 6.1% in premarket trade Friday, after the diagnostic device maker said it agreed to an early termination of its co-promotion agreement with AbbVie Inc. . The pact was for the co-promotion of OraSure's OraQuick HCV rapid antibody test in the U.S. It was as originally scheduled to end on Dec. 31, 2019, but will now end Dec. 31, 2016. OraSure said it has been ratably recognizing $75 million in aggregate exclusivity payments resulting from the agreement over the original 5 1/2-year term, beginning June 2014. Given the early termination of the agreement, OraSure said only a portion of the $75 million will be received. AbbVie's stock tacked on 1.4% in premarket trade. OraSure shares had fallen 8.2% year to date through Thursday, while AbbVie's stock had gained 4.5% and the S&P 500 had advanced 2.7%.