Altai Capital Prepares Board Challenge at OraSure After Raising Stake

Altai Capital Management is preparing to push for board representation at OraSure Technologies (OSUR.O) after raising its stake in the medical device maker from 3% to 5%, according to sources familiar with the matter.

The hedge fund, founded by Rishi Bajaj, plans to nominate two candidates, potentially including Bajaj himself, when two OraSure directors stand for reelection at the company’s 2025 annual meeting. The move follows growing investor frustration over OraSure’s performance and management decisions.

OraSure, best known for its COVID-19 rapid antigen tests, has seen its stock price fall 23% over the past year, though shares have recently recovered slightly to $3.25, valuing the firm at about $237 million.

Altai’s campaign comes after OraSure rejected a buyout bid from healthcare entrepreneur Ron Zwanziger, who had offered $3.50–$4 per share. While Altai and Zwanziger are not working together, both moves reflect mounting pressure on OraSure’s leadership.

Other investors, including Cannell Capital, have also called for a board refresh. “They have not executed,” Cannell said, adding that OraSure would benefit from “at least two new directors.”

Bajaj has experience with such campaigns. After joining the board of ContextLogic (Wish.com’s former parent) in 2023, he later became CEO, restructuring the company into a holding entity and helping its share price double. Investors see potential for a similar turnaround playbook at OraSure.

The company has attempted to diversify, acquiring Sherlock Biosciences for its molecular diagnostics platform, but remains a small player in a fragmented diagnostics market dominated by Danaher, Siemens, Roche, and Thermo Fisher Scientific.