Chembio Diagnostics, Inc. (CEMI), a company that develops, manufactures, and commercializes point-of-care (POC) diagnostic tests, has surged 10.68% in aftermarket trading sessions. Consequently, CEMI stock is changing hands at $2.28 at the time of the writing. The increase could be attributed to the announcement of EUA application submission. On Tuesday, CEMI closed the day at $2.06 after increasing 1.48% during regular trading hours.
Why CEMI Increasing?
On Tuesday, CEMI announced the submission of the Emergency Use Authorization (EUA) application to US FDA for the new DPP SARS-CoV-2 Antigen test. Previously, the company received the award for Preparedness and Response, to assist in developing a COVID-19 point-of-care antigen test system from BARDA. DPP SARS-CoV-2 Antigen test system is designed in such a way that it could prove handy for detecting SARS-CoV-2 antigens in just 20 minutes. The antigen system is designed to use a minimally invading nasal swab and which could be read visually.
Q3 2021 Financial Results
On 4th November, CEMI reported the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated total revenues of $12.05 million during the quarter against $10.27 million for the same period of 2020. The total costs and operating expenses for the period were $17.68 million against $4.90 million for the same period of 2020. The net loss suffered by the company during the period was $6.36 million (or $0.24 per basic and diluted share) against $5.53 million (or $0.28 per basic and diluted share) for the same period of 2020.
Richard Eberly, CEMI President, and Chief Executive Officer, while commenting on the results, said that the product revenue growth was mostly due to the largest purchase order in the company’s history. Besides, the company continues to address the labor issues and global supply chain hindrances to increase its production capacity. He further added that the company would continue to do everything to minimize the impact of continuing market challenges faced by the customers.
Future Outlook for CEMI
A closer look at statistics reveals CEMI stock hasn’t faced much volatility in the recent past. Analysts suggest that a continuous improvement in the financial stature of the company, as depicted in quarterly results, is the vanguard for the upcoming success of CEMI stock. Hence, potential investors should keep a close eye on CEMI stock fluctuations.