LI's Chembio partners with London firm to develop better coronavirus test

 A Hauppauge manufacturer of rapid diagnostic tests hopes to develop a better test for the coronavirus with a British company, officials said Thursday.

Chembio Diagnostics Inc. said it had “entered into a worldwide strategic partnership” with LumiraDX Ltd. “to develop point-of-care diagnostic tests for the detection of the COVID-19 virus” or the coronavirus.

Chembio executives did not say specifically how long it will take to develop the test, the research cost or the test’s price.

"The companies working together really propels this," Chembio interim CEO Gail Page told stock analysts on Thursday. "It will be done expeditiously. We want to bring something to the market as soon as possible, but we also want to make sure its commercially viable."

She added, "We think we will bring a big difference to the market" for coronavirus tests.

The new test must be approved by the federal Food and Drug Administration before it can be used, Page said.

Previously, Chembio developed point-of-care tests for the Zika and Ebola viruses,  both of which spread rapidly in South America and Africa.

LumiraDX, with headquarters in London and an office in Massachusetts, specializes in software and testing platforms. The two companies have worked together previously.

LumiraDX CEO Ron Zwanziger said on Thursday the two companies plan to create a test that becomes “the chosen approach for the detection and monitoring of the COVID-19 virus, which has become a worldwide pandemic.”

Separately, Chembio announced the appointment of private equity executive Richard Eberly to be CEO, effective Monday.

Eberly comes to Chembio from Solid Rock Principled Capital LLC, a private equity firm in Cincinnati, Ohio that invests in health care companies. He also spent more than 23 years at Meridian Biosciences Inc., a public company in Cincinnati. 

Eberly told the stock analysts on Thursday's conference call that he will increase sales to help return Chembio to profitability. It last recorded an annual profit in 2013.

Eberly succeeds John J. Sperzel III who resigned in January to head T2 Biosystems Inc., a diagnostics company in Lexington, Massachusetts. Sperzel led Chembio for about six years.

Chembio shares closed down 30 cents, or about 10%, to $2.80 on Thursday in NASDAQ trading.

Besides Chembio, other local businesses, hospital laboratories and research institutions are involved in the fight against the coronavirus.

Codagenix Inc., a biotechnology startup, is developing a vaccine that it hopes to begin safety testing in human volunteers by May. The company is located in an incubator in the campus of Farmingdale State College.

By James T. Madore

james.madore@newsday.comJamesTMadore

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.