Chembio Diagnostics loss widens on expenses, falling sales

Chembio Diagnostics Inc. said Thursday its losses widened by 61 percent in the July-September period compared with a year ago as research and development expenses rose and sales declined.

The Medford-based manufacturer of rapid tests for HIV, syphilis, Ebola and other diseases reported a loss of $437,000 in the third quarter. Last year, the loss was $271,000.

Sales fell 6 percent to $6.9 million, year over year.

John J. Sperzel, the company's chief executive, said it recently received a $6.8 million payment for its point-of-care tests used in Brazil.

He also said sales of an HIV self-testing kit introduced in Europe in the quarter will generate sales of $1 million by year-end. Similarly, a new Ebola test will bring in more than $1 million by Dec. 31.

Chembio reported its cash on hand on Sept. 30 was $1.1 million, compared with $4.6 million in December 2014. Accounts receivable and prepaid expenses rose during the quarter. "With growing validation from leading health care groups and our internal development successes, we believe we are well positioned to expand our product lines, our brands, and our markets worldwide," Sperzel said.

The earnings announcement came before the stock market opening. Chembio shares rose 8 cents Thursday, or 1.5 percent, to close at $5.34 on the Nasdaq Market. In the past year, the shares are up 98 cents, or 22.5 percent.