In a signal of the firm’s rapid growth and investment potential, Bethlehem’s OraSure Technologies Inc. is set to join the S&P SmallCap 600 listing, effective before the open of trading on Thursday.
The company, which manufactures, develops, markets and sells oral fluid diagnostic products and specimen collection devices, will replace G&K Services Inc. in the listing.
“I think it’s a matter of increased visibility for the company in the eyes of the investment community,” said Ron Spair, chief financial officer and chief operating officer of OraSure. “The listing is widely followed by investors. This is a nice designation for the company.”
Among other areas, the S&P SmallCap 600 listing looks at the market cap in liquidity in OraSure’s sector, Spair said, offering a more holistic view of the company.
The addition of OraSure to the listing won’t take effect until after the closing of the market today, Spair said. However, he confirmed that once trading begins Thursday, OraSure will be part of the SmallCap 600.
The company has been growing rapidly the past few years.
For the first quarter of 2017, Spair said, consolidated net revenues will range from $31 million to $31.5 million. Net income is expected to be between 17 and 18 cents per share, which includes the results of all companies in the group.
“We have a number of different revenue growth opportunities,” Spair said.
These include DNA Genotek, which is a subsidiary that’s active in the market of collection systems for high quality DNA samples, Spair said.
“We are also participating in a country-wide elimination program for Hepatitis-C,” Spair said.
OraSure also has seen increasing growth in its OraQuick HIV self-test.
The company will be added to the S&P SmallCap 600 Global Classification Industry Standard Health Care Supplies Sub-Industry Index.
The S&P Dow Jones Indices are a global resource for index-based concepts, data and research and home to financial market indicators such as the S&P 500 and the Dow Jones Industrial Average. The SmallCap 600 represents small-cap companies, according to an S&P U.S. Indices methodology document.
To be eligible for the SmallCap 600, the indices measure a host of criteria, including liquidity, market capitalization and financial viability.
The indices are designed to be liquid, so as to support investment products such as index mutual funds, exchange traded funds, index portfolios, index futures and options.
The S&P U.S. indices are designed to reflect the U.S. equity markets and, through the markets, the U.S. economy.