LI test maker wins $2.7 million judgment against UK firm that stole HIV self-test technology
Lab technicians work inside the laboratory at Chembio Diagnostics Factory in Medford on Aug. 24. Credit: James Carbone
A Hauppauge manufacturer of HIV tests has won a $2.7 million judgment against a former distributor in the United Kingdom.
Chembio Diagnostics Inc. said this week that an arbitration tribunal found its trade secrets for an HIV self-test were "misappropriated" by BioSure Ltd. in Nazeing, England, to produce and sell a rival test.
That test, BioSure HIV Self-Test, was recognized by Queen Elizabeth II in April with the Queen’s Award for Enterprise: Innovation.
At the time, BioSure CEO Bridgette Bard said its test "launched in 2015 as the world’s first approved blood-based HIV self-test."
The arbitration tribunal has ordered BioSure to "stop making, using, offering for sale or selling the BioSure HIV Self-Test," Chembio said on Monday. A review of the British company’s website shows only its COVID-19 self-tests for sale.
BioSure must transfer all regulatory approvals for its HIV test to Chembio and stop using the BioSure HIV Self-Test name, Chembio said.
"We believe the tribunal reached the correct decision," said Richard Eberly, the company's CEO. "Confidential information and trade secrets are very important to Chembio, and this case was about protecting that information."
A BioSure spokeswoman didn’t respond to a request for comment. The company’s chairman is Sir Nigel Knowles, a prominent attorney, high sheriff of London and a trustee of The Prince’s Trust, a charity established by Prince Charles.
In 2014-19, BioSure was authorized to sell Chembio’s Sure Check HIV Self-Test in the United Kingdom.
That permission ended in April 2019, and in September 2019, Chembio started an arbitration in New York State. It alleged that BioSure "breached the distribution agreement, misappropriated Chembio’s trade secrets and engaged in other unlawful conduct," Chembio said on Monday.
The monetary award equals 8% of the company’s 2020 sales. It has operations in Hauppauge and Medford.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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