Activist investor Altai Capital Management is stepping up pressure on OraSure Technologies, calling on the diagnostics company to pursue a sale and grant it board representation as part of a strategic review, according to a report by Reuters.
In a letter to the board, Altai argued that OraSure could command a significantly higher valuation in a takeover scenario, estimating a potential price range of roughly $4.50 to $6.60 per share—well above current trading levels. The fund, which owns about 5% of the company, is also pushing for two board seats and has indicated it is prepared to continue a proxy fight if an agreement is not reached.
The renewed campaign follows months of discussions between the investor and the company that failed to produce a resolution. Altai has been increasingly vocal about what it views as sustained underperformance, with OraSure’s shares having declined sharply over the past five years amid waning demand for Covid-era testing products.
OraSure recently reported a year-on-year drop in quarterly revenue and is awaiting regulatory approvals for new diagnostic offerings expected next year. The company said it remains focused on improving margins and positioning the business for longer-term growth, noting that it has refreshed its board in recent years and has engaged with shareholders.
Altai has also criticised the company’s capital allocation strategy, including acquisitions and investments aimed at expanding its diagnostics pipeline, arguing that these moves have yet to deliver meaningful near-term returns. The fund has instead called for tighter cost control and a more disciplined approach to deploying capital.
