Chembio Dianostics’ (CEMI)long-term revenue and EPS growth should significantly accelerate following the U.S. launch. We believe the DPP technology is superior to the only other currently marketed oral fluid HIV test, which generates annual revenue in excess of $40MM in the U.S. alone.
Continued robust sales growth of the lateral flow assays will help support commercialization of the U.S. DPP pipeline.
We are initiating coverage of Chembio Diagnostics with an Outperform rating. Chembio is poised to deliver on several highly significant milestones over the next 18 months which we expect to be the catalysts to tripling revenue over the next four years from the $13.8MM posted in 2009.Zacks Investment Research
