8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  May 13, 2009 (May 7, 2009)

CHEMBIO DIAGNOSTICS, INC.

(Exact name of registrant as specified in its charter)

Nevada	0-30379	88-0425691
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of Incorporation)		Identification Number)
	3661 Horseblock Road
	Medford, NY 11763
	(Address of principal executive offices)
	631-924-1135
	(Registrant’s Telephone Number)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) Effective May 11, 2009, the Company’s Board of Directors approved the Company’s extension of the June 15, 2006 employment agreement (the “Employment Agreement”) with Lawrence A. Siebert, the Company’s President and Chief Executive Officer.  The Employment Agreement, which had been extended for an additional one-year term from May 11, 2008, provides that Mr. Siebert will serve as the Chief Executive Officer and President of the Company for an additional three-year term.

Other than the dates and salary amounts, the terms of the extended Employment Agreement are substantially similar to the June 15, 2006 Employment Agreement.  Under the terms of the extended Employment Agreement (i) Mr. Siebert will continue as the Company’s Chief Executive Officer and President for an additional term of three years from May 11, 2009; (ii) Mr. Siebert will earn a salary of $265,000, which will be reduced temporarily to $225,250 in connection with Mr. Siebert’s agreement to a 15 percent salary reduction until the later to occur of July 1, 2009, or the date upon which other employees’ salaries are restored to the levels that existed prior to January 14, 2009 when the Company implemented payroll reductions; (iii) Mr. Siebert will continue to be eligible for a bonus of up to 50% of his salary, consisting of (a) a bonus of up to 25% of his salary that is at the complete discretion and determination of the Board, and (b) a bonus of up to an additional 25% of his salary that will be determined based upon revenue and earnings performance criteria established by the Board.

ITEM 7.01.                              REGULATION FD DISCLOSURE.

On May 11, 2009, the Company issued a press release entitled “IDRI and Chembio Collaborate to Develop a Low-cost Test for Visceral Leishmaniasis”  A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Item 7.01 of this Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. The information in this Item 7.01 of this Form 8-K also shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates it by reference.

ITEM 9.01.                              FINANCIAL STATEMENTS AND EXHIBITS

Exhibits.

99.1   Press Release entitled “IDRI and Chembio Collaborate to Develop a Low-cost Test for Visceral Leishmaniasis” dated May 11, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  May 13, 2009                                                                           Chembio Diagnostics, Inc.

 By:  /s/ Lawrence A. Siebert                                                                

 Lawrence A. Siebert

       Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release entitled “IDRI and Chembio Collaborate to Develop a Low-cost Test for Visceral Leishmaniasis” dated May 11, 2009.

EX-99.1

             

IDRI and Chembio Collaborate to Develop a

Low-cost Test

for Visceral Leishmaniasis

MEDFORD, N.Y (May 11, 2009) Chembio Diagnostic Systems, Inc. (a wholly owned subsidiary of Chembio Diagnostics, Inc., OTCBB CEMI) and the Infectious Disease Research Institute (IDRI) today announced they have entered into a milestone-based agreement pursuant to which Chembio will use its patented dual path platform technology (DPP®) and other Chembio capabilities to design, develop and manufacture a low-cost device for the diagnosis of visceral leishmaniasis. This step is critical to IDRI’s program funded under a grant from the Bill & Melinda Gates Foundation for the development of accurate, rapid and affordable methods of diagnosis for patients suffering from visceral leishmaniasis in Africa. This announcement was made at the 96th Annual Meeting of the American Association of Immunologists (Immunology 2009) held May 8-12 in Seattle, WA.

Most visceral leishmaniasis cases occur in poor populations living in remote areas far from healthcare centers. In these settings, the disease often co-exists with malaria and other debilitating parasitic infections that exhibit similar symptoms, making diagnosis difficult. In these challenging conditions, the traditional labor-intensive and complex diagnostic procedures – invasive removal of bone marrow, spleen and lymph node tissues for microscopic examination and isolation of the parasite by culture – are neither feasible nor field-friendly.

“We are actively working to develop a rapid and simple test that could be used in the field in Africa to diagnose visceral leishmaniasis by using no more than a drop of blood,” said Dr. Steven Reed, Founder and Head of IDRI's Research and Development Program. “This would dramatically improve early detection of visceral leishmaniasis, making current treatments more effective and decreasing transmission rates.”

Rapid diagnostic tests are made of two major components: the reagents which are selected to react with specific immunologic components present in the blood of infected patients, and the device which acts as a physical support for the reagents. Diagnostic devices can be as simple as strips of paper or plastic cassettes. These simple tests do not require highly skilled laboratory staff and can be done in the field with results usually available within the next ten to fifteen minutes.

Curt Malloy, SVP Operations and General Counsel of IDRI said, “Chembio has significant experience in the development, manufacturing and distribution of diagnostic tests, particularly in the developing world. IDRI will provide the reagents for the test and, with our financial support, Chembio will develop a reliable diagnostic device that can be manufactured at low-cost. This will be paramount to ensure affordability of the test when ready for implementation.”

“We are thrilled to be able to collaborate with IDRI on the complex yet urgent task of controlling visceral leishmaniasis in developing countries,” commented Larry Siebert, Chairman and President of Chembio. “Working alongside IDRI, we will apply our DPP® and other technologies to create a low-cost diagnostic device to help fight this disease that has been ignored for too many years,” commented Javan Esfandiari, Senior Vice President of R&D for Chembio.

About Visceral leishmaniasis

Visceral leishmaniasis (VL) is a serious, potentially lethal, systemic parasitic illness that has caused epidemics in India, Southeast Asia, Africa and Latin America. Leishmania parasites are transmitted to humans through the bite of infected sand flies. Patients with VL develop infections of their liver, spleen, and bone marrow and may die if the infection goes untreated. About 500,000 new cases of visceral leishmaniasis occur each year, and 10% of these patients ― mostly children ― die because their disease cannot be accurately diagnosed in a timely fashion.

IDRI-Translating science into global health solutions

IDRI is a Seattle-based not-for-profit organization committed to applying innovative science to the research and development of products to prevent, detect and treat infectious diseases of poverty. By integrating capabilities, IDRI strives to create an efficient pathway bringing scientific innovation from the lab to the people who need it most. For more information, go to www.idri.org.

IDRI has been working on leishmaniasis for more than 15 years, applying its expertise to the development of both vaccines and diagnostics. IDRI is actively developing a therapeutic leishmaniasis vaccine designed to be used in conjunction with chemotherapy. This candidate vaccine is currently being tested in several countries. If successful, both diagnostic and therapeutic tools would complement each other to provide an improved strategy against leishmaniasis.

About Chembio Diagnostics

Chembio Diagnostics, Inc. through its wholly owned subsidiary Chembio Diagnostic Systems, Inc., develops, manufactures, licenses and markets proprietary rapid diagnostic tests in the growing $5 billion point-of-care testing market. Chembio’s two FDA PMA-approved, CLIA-waived, rapid HIV tests are marketed in the U.S. by Inverness Medical. Chembio markets its HIV STAT-PAK® line of rapid HIV tests internationally to government and donor-funded programs directly and through distributors. Chembio also has rapid tests for veterinary tuberculosis and Chagas disease.  In 2007 Chembio received a U.S. patent for its Dual Path Platform (DPP®) technology which has significant advantages over lateral-flow technologies. This technology is providing Chembio with a significant pipeline of business opportunities for the development and manufacture of new products based on DPP®. Headquartered in Medford, NY, with approximately 100 employees, Chembio is licensed by the U.S. Food and Drug Administration (FDA) as well as the U.S. Department of Agriculture (USDA), and is certified for the global market under the International Standards Organization (ISO) directive 13.485.

Forward-Looking Statements

Statements contained herein that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended.  Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management.  Such statements are estimates only, as the Company has not completed the preparation of its financial statements for those periods, nor has its auditor completed a review or audit of those results.  Actual revenue may differ materially from those anticipated in this press release.  Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties.  Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to Chembio's ability to obtain additional financing, to obtain regulatory approvals in a timely manner and the demand for Chembio's products.  Chembio undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Chembio's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.  Factors that may impact Chembio's success are more fully disclosed in Chembio's most recent public filings with the U.S. Securities and Exchange Commission.

Contacts:

Alice Grasset 206-330-2553 or agrasset@idri.org

Susan Norcott 631-924-1135 x125 or snorcott@chembio.com

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