Chembio Diagnostics, Inc. (CEMI), a developer of diagnostic solutions, has seen an increase of 9.59% in the premarket trading session. As a result that, CEMI stock is changing hands at $2.97 at the time of this writing. On Thursday, CEMI stock closed the day at $2.71 after a gain of 3.83%. There’s no obvious reason or press release which has caused this rapid surge in CEMI stock. So, let’s discuss some recent news of CEMI.
CEMI launch of the covid test
On the 27th of August, CEMI announced that it would be launching the commercial distribution of a COVID-19 antigen test. The test is emergency use authorized and is patent pending. The test would be used for decentralized and traditional testing milieu. SCoV-2 Ag Detect™ Rapid Test is manufactured by InBios International Inc. It is a rapid immunoassay test and is authorized for use in laboratories with CLIA waiver certification. The test provides results within 20 minutes from a nasal swab. Alongside that, the test requires no instrumentation. Charles Caso, Vice President of Sales and Marketing for Chembio, said on the occasion that the company is excited about the addition of SCoV-2 Ag Detect™ Rapid Test in its menu of COVID-19 assays.
Q2 2021 financial results
On the 5th of August, CEMI announced the quarterly results for the second quarter of fiscal 2021, which ended on 30th June. According to the details, the company generated revenue of $6.5 million during the quarter, an increase of 26% when compared with the previous year. The net product sales were $3.9 million, an increase of 4% when compared to the previous year. The government grants, license and royalty, and R&D revenue stood at $2.5 million for the quarter, an increase of 92% when compared with the previous quarter. The gross product margin for the time stands at a negative $0.1 million, as compared to a negative $1.9 million for an equivalent period of 2020. R&D expenses increased some 46% during the quarter. The net loss for the quarter stood at $9.1 million, or $0.45 per diluted share. During the previous year, it was $7.8 million or $0.42 for a diluted share. At the end of the quarter, the company had cash and cash equivalents of $5.6 million.
Receipt of purchase order
On the 22nd of July, CEMI announced that it had received the $4 million purchase order from Partnership for Supply Chain Management (PFSCM), supported by The Global Fund. The purchase order was about the purchase of HIV 1/2 STAT-PAK Assay for shipment to Ethiopia into early 2022. The company said that the delivery of a full number of tests covered by the purchase order could be hampered. This would be due to limitations in the CEMI supply chain and liquidity and some of the other matters over which CEMI has no control. Richard L. Eberly, Chembio’s President, and Chief Executive Officer said that the company looks forward to working closely with PFSCM to continue the supply of its high-quality HIV tests.
What’s next for CEMI?
Statistics reveal a grim picture of CEMI. The stock has declined by 45.14% during the previous half-year. But on the other hand, future times could bring something great for CEMI. CEMI EPS for this year is expected to grow by some 24.40%. So, potential investors should keenly watch the performance of CEMI in the future.
