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Product Sales Lifts Chembio Diagnostics Q2 Revenues 24 Percent

NEW YORK (360Dx) – Chembio Diagnostics reported after the close of the market on Wednesday a 24 percent increase in total revenues, paced by a 45 percent spike in product sales.

For the three months ended June 30, the point-of-care infectious disease diagnostics firm posted $4.1 million in total revenues, up from $3.3 million in Q2 2016. Net product sales rose to $2.9 million from $2.0 million. License and royalty revenues also rose sharply to $227,635 from $33,895 a year ago, while R&D, milestone, and grant revenues declined 17 percent to $994,237 from $1.2 million.

Chembio said that its R&D costs shrank 17 percent to $2.0 million from $2.4 million, but that its SG&A costs grew 31 percent to $2.1 million from $1.6 million.

For the second quarter, the firm posted a net loss of $2.2 million, or $.18 per share, compared to a net loss of $8.3 million, or $.86 per share, in the year-ago period.

As of June 30, Chembio had $3.7 million in cash and cash equivalents.

Chembio acting CEO Sharon Klugewicz said in a statement that during the recently completed quarter, the firm focused on executing its transition strategy with three main areas of attention. First, it built on its core business of sexually transmitted diseases. It continues to prioritize the US development and international commercialization of the DPP HIV-Syphilis assay, and the US clinical trial for the tests is expected to be completed in the fourth quarter.

Klugewicz added during Q2 that the firm secured a $5.8 million order to supply test components and intermediate products for the production of DPP HIV 1/2 assays in Brazil. Chembio has shipped $900,000 of the order and expects shipping the remaining $4.9 million during the third and fourth quarters of 2017.

Second, the firm is focused on building its broad tropical and fever disease portfolio, and is committed to commercializing multiple tropical and fever disease products in 2017. Klugewicz said the company has started selling its DPP Dengue Assay and DPP Zika Assay. It also initiated a pilot program with the US Centers for Disease Control and Prevention for Chembio's DPP Dengue/Zika/Chikungunya Assay in India, Peru, Haiti, and Guatemala.

During the second quarter, the company announced a collaboration with FIND to develop a POC test for the identification of multiple life-threatening acute febrile illnesses common in the Asia-Pacific region.

Lastly, Chembio continues to build a global commercial team and has appointed "seasoned executives" for the Americas; the Europe, Middle East, and Africa region; and Asia-Pacific, Klugewicz said.