Chembio Diagnostics
announced today that it has entered into two agreements with RVR Diagnostics
SDN BHD, a privately held company in Malaysia, where RVR will become a
licensee, distributor, and contract manufacturer of Chembio products. The
agreements are in line with Chembio’s efforts to establish a market presence in
Asia.
According to the terms of
the agreement, RVR will be granted exclusive distribution rights for certain
countries in the region and will now be able to manufacture Chembio’s DPP® HIV
1/2 Assay and DPP® HIV-Syphilis Assay. There is a possibility for RVR to
manufacture other Chembio products that use patended DPP® technology in the
future.
Javan Esfandiari, Chembio’s
SVP of Research & Development, commented, “We look forward to collaborating
with RVR on our patented DPP® technology to support our strategy of growth in
Asia, as well as RVR’s commitment to provide high quality point-of-care
technology in the Asia market.”
The agreements consist of a
technology transfer, license and distribution agreement, and also a contract
manufacturing agreement. Under the License Agreement, the parties will
collaborate so that manufacturing and distribution activities can begin in
2015. Chembio will receive a non-refundable signature fee for this work and a
contingent fee after transfer activity milestones are met.
As for the distribution part
of this agreement, RVR will distribute the products in the markets under
license from Chembio (subject to a royalty and continuing supply of reagents).
RVR is required to manufacture the DPP® HIV 1/2 Assay product in accordance
with Chembio’s FDA-approved specifications.
The Manufacturing Agreement
enables Chembio to source products from RVR’s facility for shipment to
customers outside RVR’s exclusive territory. Chembio will gain a new
strategically located and cost-effective capacity that will be important in
serving a number of global markets.
RVR’s President, Avijit Roy,
remarked, “We look forward to an exciting and bright future with Chembio in
serving the Asia market.”
For more information on
Chembio and the agreements, please visit www.chembio.com.
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