Evercore says 23andMe buyout removes downside case for OraSure

Evercore ISI believes Regeneron’s (REGN) acquisition of 23andMe for $256M announcement should remove the downside scenario where OraSure’s (OSUR) 23andMe contribution will be zero into perpetuity. Instead, the firm expects 23andMe should continue to be a “meaningful customer going forward” for OraSure. The company has previously disclosed that Regeneron is already an existing customer, which should bode well for a continued relationship between OraSure and 23andMe, the analyst tells investors in a research note. Evercore estimates that 23andMe was a $13M customer for OraSure in 2024. It keeps an In Line rating on the shares with a $3 price target.