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Chembio Diagnostics, Inc. (CEMI) Signs Two Agreements With RVR Diagnostics SDN BHD

|Includes: Chembio Diagnostics, Inc. (CEMI)

Chembio Diagnostics announced today that it has entered into two agreements with RVR Diagnostics SDN BHD, a privately held company in Malaysia, where RVR will become a licensee, distributor, and contract manufacturer of Chembio products. The agreements are in line with Chembio's efforts to establish a market presence in Asia.

According to the terms of the agreement, RVR will be granted exclusive distribution rights for certain countries in the region and will now be able to manufacture Chembio's DPP® HIV 1/2 Assay and DPP® HIV-Syphilis Assay. There is a possibility for RVR to manufacture other Chembio products that use patended DPP® technology in the future.

Javan Esfandiari, Chembio's SVP of Research & Development, commented, "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 point-of-care technology in the Asia market."

The agreements consist of a technology transfer, license and distribution agreement, and also a contract manufacturing agreement. Under the License Agreement, the parties will collaborate so that manufacturing and distribution activities can begin in 2015. Chembio will receive a non-refundable signature fee for this work and a contingent fee after transfer activity milestones are met.

As for the distribution part of this agreement, RVR will distribute the products in the 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.

The Manufacturing Agreement enables Chembio to source products from RVR's facility for shipment to customers outside RVR's exclusive territory. Chembio will gain a new strategically located and cost-effective capacity that will be important in serving a number of global markets.

RVR's President, Avijit Roy, remarked, "We look forward to an exciting and bright future with Chembio in serving the Asia market."

For more information on Chembio and the agreements, please visit chembio.com

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