- The stock price of Chembio Diagnostics Inc (NASDAQ: CEMI) increased by over 100% pre-market. This is why it happened.
The stock price of Chembio Diagnostics Inc (NASDAQ: CEMI) increased by over 100% pre-market. Investors appear to be responding positively to the company announcing its receipt of a $28.3 million purchase order from Bio-Manguinhos for the purchase of Chembio’s DPP SARS-CoV-2 Antigen tests for delivery during 2021 to support the urgent needs of Brazil’s Ministry of Health in addressing the COVID-19 pandemic.
The DPP SARS-CoV-2 Antigen test was designed for detecting the SARS-CoV-2 antigen — which indicates an active COVID-19 infection — in only 20 minutes using a minimally invasive nasal swab. And Chembio’s delivery of the full number of tests covered by the purchase order may be affected by limitations of Chembio’s supply chain, staffing, and liquidity, and other matters outside Chembio’s control.
Bio-Manguinhos — a subsidiary of the Oswaldo Cruz Foundation (Fiocruz) — is responsible for the development and production of vaccines, diagnostics, and biopharmaceuticals, primarily to meet demands of Brazil’s national public health system. And Chembio has a long-standing relationship with Bio-Manguinhos, having supplied multiple products for point-of-care detection of COVID-19 antibodies, HIV, and other infectious diseases. 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.
“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. We believe the purchase order validates the investments we made earlier this year in inventory for the DPP SARS-CoV-2 Antigen test and look forward to ramping up production. We are very proud to provide this test in Brazil and assist in efforts to manage the global pandemic.”
— Javan Esfandiari, Chembio’s Executive VP, Chief Science & Technology Officer
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