Always good to illustrate the many other projects building momentum with DPP:
We were also pleased to learn recently that Bio-Rad Laboratories, Inc. has received a CE Marking for the HIV 1/2 Confirmatory test which Chembio developed for and licensed to Bio-Rad, and for which Bio-Rad exercised the option to manufacture in its facility. The Bio-Rad product incorporates Chembio’s patented DPP® technology, and Chembio will receive royalty on Bio-Rad’s net sales of this product. This product was launched in Europe in April 2013, and we believe that Bio-Rad is also pursuing FDA approval of this product. As advertised, the product greatly simplifies and improves the accuracy of confirmatory testing for HIV infection, historically done using western blot technology which is less accurate, time consuming, labor intensive and complex.
All this is not news. It was discussed on last CC. They said they'll get a small check this Q, and growing slowly over time. I'm sure they'd rather have complete control over DPP HIV, but they don't. Still seems there should be a takeover premium in this stock. CEMI doesn't have the resources to bring DPP products to market quickly (as we've seen with Geenius). Also, CEMI us capacity constrained and distribution-limited. Were a larger company to buy CEMI, I think it's fairly clear, they could squeeze a lot more juice out of the orange.
Bio-rad practically owns the HIV market. They are using their knowledge and expertise to change confirmatory testing. The Bio-rad Geenius HIV 1/2 Confirmatory Kit (DPP) is marketed as a game changer. Great clinical results. You can google biorad and Geenius HIV to find PDFs.