- Shares more than triple on big purchase order…
- Company makes rapid tests for COVID and other diseases…
- Trading volume surges…
Chembio Diagnostics Inc (NASDAQ: CEMI) stock is surging on a big order for its COVID tests.
At writing, CEMI stock was trading at a session high and was up more than 230%.
The rally comes after Chembio announced it received a $28.3 million purchase order for its DPP SARS-CoV-2 antigen tests from Bio-Manguinhos in Brazil.
Those tests would be delivered this year “to support the urgent needs of Brazil’s Ministry of Health in addressing the COVID-19 pandemic.”
The antigen test developed by Chembio Diagnostics is designed to detect the COVID-19 virus in just 20 minutes through a nasal swab test.
But the company warned delivery of the order could be impacted by supply chain and staffing issues.
The two companies have a long-standing relationship with Chembio “having supplied multiple products for point-of-care detection of COVID-19 antibodies, HIV, and other infectious diseases.”
Bio-Manguinhos is a subsidiary of the Oswaldo Cruz Foundation (Fiocruz).
The company is responsible for the development and production of vaccines, diagnostics, and biopharmaceuticals, primarily to meet the demands of Brazil’s national public health system.
Chembio said, “Bio-Manguinhos received regulatory approval from Agência Nacional de Vigilância Sanitária (ANVISA) in March 2021, following ANVISA approval of the test for Chembio’s Brazilian subsidiary in November 2020.”
Chembio’s Executive VP, Chief Science & Technology Office, Javan Esfandiari, said, “We are pleased to significantly expand our customer relationship with Bio-Manguinhos to address the testing needs surrounding COVID-19.”
“Enabling providers to test patients at the point-of-care and determine their infection status in only 20 minutes can be one of the most effective methods for controlling the spread of COVID-19 and improving patient outcomes.”
The COVID antigen tests made by Chembio are developed using the same DPP rapid test platform the company has used for other rapid viral tests.
Chembio says its “proprietary DPP technology platform provides high-quality, rapid diagnostic results in 15 to 20 minutes using a small drop of blood from the fingertip or alternative samples.”
The company says those tests can detect up to eight results from a single sample.
Its portfolio of DPP-based tests approved by the FDA include tests for HIV, syphilis, zika virus, and ebola.
8 Facts About CEMI Stock
- Chembio Diagnostics was founded in 1985 and is headquartered in Medford, NY
- The company has a market cap of $41 million
- Chembio’s vision is “to reduce the incidence and burden of disease globally”
- Chembio says its mission is “to develop and commercialize rapid, easy to use, and reliable point of care tests that improve diagnosis and monitoring of disease”
- The company also has locations in Brazil and Germany
- Trading volume surged to more than 185 million shares today
- The FDA granted Emergency Use Approval for Chembio’s rapid COVID-19/flu test in early April
- CEMI stock closed at $2.06 per share on Tuesday
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