Chembio Enters Agreements With RVR in Southeast Asia
Agreements Provide Access to New Markets & Potential Cost-Effective Supplier
MEDFORD, N.Y., Feb. 12, 2014 (GLOBE NEWSWIRE) -- Chembio Diagnostics, Inc.
(Nasdaq:CEMI), a leader in point-of-care ("POC") diagnostic tests for
infectious diseases, announced today that it has entered into two agreements
with RVR Diagnostics SDN BHD ("RVR"), a privately-held company in Malaysia.
The agreements support Chembio's strategy of establishing a market presence in
Asia, in collaboration with RVR as a licensee, distributor, and contract
manufacturer.The agreements grant exclusive distribution rights to RVR in
certain countries in the region and enable RVR to manufacture Chembio's DPP®
HIV 1/2 Assay and DPP® HIV-Syphilis Assay and potentially other products
developed by Chembio incorporating its patented DPP® technology.
The agreements consist of a technology transfer, license and distribution
agreement ("License Agreement") and also a contract manufacturing agreement
("Manufacturing Agreement").Under the License Agreement, the parties will
collaborate to allow RVR to manufacture the licensed products so that
distribution activities can begin in 2015. In consideration for this work,
Chembio will receive a non-refundable signature fee and, approximately one
year later, a contingent fee upon validation of the transfer activity
milestones.RVR will distribute the products in the exclusive markets under
license from Chembio subject to a royalty and continuing supply of
reagents.RVR is required to manufacture the DPP® HIV 1/2 Assay product in
accordance with Chembio's FDA-approved specifications and plans to register
its facility with the FDA.
The Manufacturing Agreement will enable Chembio to source products from RVR's
facility for shipment to Chembio's customers that are outside RVR's exclusive
territory. This will provide Chembio with a new, strategically located and
cost-effective capacity that will be important in serving a number of global
markets including the rapidly growing Asian markets.
RVR was established in 2010 with the goal of becoming a leading supplier and
distributor of high quality point-of-care diagnostic products in Asia.RVR has
been capitalized with a combination of private investment, public grants and
research support from the National University of Malaysia, the country's
Javan Esfandiari, Chembio's SVP of Research & Development remarked, "We look
forward to collaborating with RVR on our patented DPP® technology to support
our strategy of growth in Asia, as well as RVR's commitment to provide high
quality POC technology in the Asia market."
Avijit Roy, President of RVR commented, "We look forward to an exciting and
bright future with Chembio in serving the Asia market."
About Chembio Diagnostics
Chembio Diagnostics, Inc. develops, manufactures, licenses and markets
proprietary rapid diagnostic tests in the growing $10 billion point-of-care
testing market. Chembio's two FDA PMA-approved, CLIA-waived, rapid HIV tests
are marketed in the U.S. by Alere, Inc. Chembio markets its HIV STAT-PAK® line
of rapid HIV tests internationally to government and donor-funded programs
directly and through distributors. Chembio has developed a patented
point-of-care test platform technology, the Dual Path Platform (DPP®)
technology, which has significant advantages over lateral-flow technologies.
This technology is providing Chembio with a significant pipeline of business
opportunities for the development and manufacture of new products based on
DPP®. Headquartered in Medford, NY, with approximately 200 employees, Chembio
is licensed by the U.S. Food and Drug Administration (FDA) as well as the U.S.
Department of Agriculture (USDA), and is certified for the global market under
the International Standards Organization (ISO) directive 13.485. For more
information, please visit: www.chembio.com.
Statements contained herein that are not historical facts may be
forward-looking statements within the meaning of the Securities Act of 1933,
as amended.Forward-looking statements include statements regarding the
intent, belief or current expectations of the Company and its management.Such
statements are estimates only, reflect management's current views, are based
on certain assumptions, and involve risks and uncertainties.Actual results,
events, or performance may differ materially from the above forward-looking
statements due to a number of important factors, and will be dependent upon a
variety of factors, including, but not limited to, Chembio's ability to obtain
additional financing, to obtain regulatory approvals in a timely manner, as
well asand the demand for Chembio's products.Chembio undertakes no
obligation to publicly update these forward-looking statements to reflect
events or circumstances that occur after the date hereof or to reflect any
change in Chembio's expectations with regard to these forward-looking
statements or the occurrence of unanticipated events.Factors that may impact
Chembio's success are more fully disclosed in Chembio's most recent public
filings with the U.S. Securities and Exchange Commission.
CONTACT: Chembio Diagnostics
(631) 924-1135, ext. 125
Vida Strategic Partners (investors)
Stephanie C. Diaz
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