NEW YORK (360Dx) – Chembio Diagnostics reported after the close of the market on Wednesday that its third quarter revenues doubled year over year on strong demand for its sexually transmitted disease testing products.
For the three-month period ended Sept. 30, Chembio's revenues climbed to $7.6 million from $3.7 million the year before. Product sales were up 145 percent to $6.1 million from $2.5 million, with HIV product revenues up 273 percent year over year. R&D milestone, grant, and royalty revenues rose nearly 17 percent to $1.5 million from $1.2 million.
Chembio's R&D spending in the third quarter declined 20 percent to $1.8 million from $2.0 million a year earlier, while SG&A expenses increased 26 percent to $2.3 million from $1.8 million, primarily due to the company scaling up its sales and marketing organization globally, as well as professional fees.
For the third quarter, the firm posted a net loss of $584,661, or $.05 per share, versus a year-ago loss of $2.1 million, or $.19 per share.
At the end of September, Chembio had cash and cash equivalents totaling $1.9 million.
"During the third quarter of 2017, the company continued to make progress with each of its key objectives," including strengthening its core sexually transmitted disease business, building a tropical and fever disease portfolio, and building a global commercial team, Chembio President and CEO John Sperzel said in a statement.
He added that Chembio continues to prioritize the development of its DPP HIV-Syphilis assay and remains on-track to complete a US clinical trial of the test by year end. The company also anticipates commercializing the DPP Malaria assay next year having completed field evaluation of the test during the third quarter, he said.
During Thursday morning trading on the Nasdaq, shares of Chembio were down $.10 at $6.15.