C.E. Unterberg Goes In With Buy Rating on Chembio

Investment Nike Air VaporMax pas cher bank C.E. Unterberg, Towbin last week initiated coverage of Chembio Diagnostics, a Medford, NY diagnostics company that specializes in rapid, point-of-care (POC) tests for HIV and other infectious diseases. Included in the investment merits cited by C.E. Unterberg, which launched Chembio coverage with a buy rating, are: a growing demand for rapid POC testing, Chembio’s partnership with Inverness Medical, and the company’s new Dual Path Platform technology, for which it was just awarded a U.S. patent. Read on for details on these merits, as well as risks associated with the investment.

From C.E. Unterberg, Towbin’s March 28, 2007 Initiation Report on Chembio Diagnostics:

Investment Merits
Growing demand for rapid POC testing: Chembio develops and markets rapid point-of care (POC) testing products for infectious diseases. Currently, Chembio’s most important products are its tests used to diagnose HIV, Nike Air VaporMax pas cher which affects 40 million people worldwide. The company also markets a test for Chagas disease, and is developing a number of other rapid POC test for other diseases. The company’s products are accurate, low cost tests that do not require lab equipment or expertise to use.

New partnership with Inverness Medical: Chembio recently signed a distribution deal with Inverness Medical Innovations (IMA:NR) for its FDA approved rapid HIV tests. Inverness has the exclusive right to market Chembio’s rapid HIV tests in the U.S. under the Inverness Clearview brand, which were launched last month. Chembio will manufacture the product.

Key Dual Path Platform technology: The company has recently received a U.S. patent for its proprietary Dual Path Platform (DPP) technology. This Nike Air VaporMax pas cher is a lateral flow rapid diagnostic test system, which could enhance the sensitivity and specificity of its rapid tests. The company is developing a number of next generation tests based on the DPP technology, and also believes that DPP will create licensing opportunities with other manufacturers that seek enhanced rapid test performance or freedom to operate.

Risks
As a microcap company, there are significant risks associated with this investment, including: The company has a history of losses and has limited resources which could place it at a competitive disadvantage to the other participating companies in the diagnostic marketplace. Additionally, slower than expected growth in the POC market,Nike Air VaporMax pas cher regulatory issues including approvals of device labeling claims, approval of CLIA waivers, inadequate reimbursement, litigation over intellectual property disputes, and new product offerings from competitors, could all negatively affect our current revenue and earnings projections.

Valuation
Given that Chembio is still largely a development stage company, accurate valuation is more complex and requires a number of forward assumptions, which at best are inexact. Using our FY2009 revenue estimate of $21 million as a base, discounted back two years at 25%, we apply what we believe is a representative take-out multiple of 9x revenue, which results in our 12-month price target of $1.60.http://www.airmaxfrance2015.com/

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