ex99_1.htm

Exhibit 99.1 - Text version of Presentation

Annual Meeting of Shareholders

June 3, 2009

SLIDE - 1

Forward Looking Statement

Statements contained herein that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of Chembio and its management. 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 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.

SLIDE - 2

Selected Four Year Comparative Results

23% CAGR of Sales: 307% Incr. Gross Margin $s

$(000s)	2008			2007			2006			2005
Total Revenues	$	11,050		$	9,231		$	6,502		$	3,941

Cost of sales		7,198			6,435			4,894			2,996

Gross Profit		3,852			2,796			1,608			945
		34.9	%		30.3	%		24.7	%		24.0	%

R&D Exp.		2,605			1,907			1,401			1,365
SG&A Exp.		3,317			3,765			4,787			2,878
Operating Loss		(2,071	)		(2,876	)		(4,580	)		(3,298	)

Net Loss		(1,949	)		(2,627	)		(4,995	)		(3,252	)

Pref. Stock Exp.		-			5,645			3,210			3,517

Net Loss	$	(1,949	)	$	(8,272	)	$	(8,205	)	$	(6,769	)
Loss per Share	$	(0.03	)	$	(0.57	)	$	(0.80	)	$	(0.88	)
Avg. No. Shares		61,266,954			14,608,478			10,293,168			7,705,782

Working capital	$	1,664		$	3,229		$	5,113		$	4,708
Total assets		5,915			6,585			7,907			7,075
Total liabilities		3,338			2,322			2,297			1,964
Equity (Deficit)		2,577			4,263			(940	)		1,053

SLIDE - 3

Selected Q1 Financial Results

•	Gross Margin $s Increased 20%

•	SG&A Decreased 33.6%

•	Operating Loss Decreased 60%

•	Cash stabilized

3 Mos. Ended	3/31/2009			3/31/2008

$(000s)
Net sales	$	2,269		$	2,238
R&D Income		276			127
Total Revenues		2,546			2,365

Cost of sales		1,547			1,532
Gross Profit		999			833
		39.2	%		35.2	%
R&D Exp.		647			626
SG&A Exp.		676			1,018
Operating Loss		(324	)		(812	)

Other Inc. (Exp.)		(1	)		13

Net Loss	$	(325	)	$	(798	)
EPS	$	(0.005	)	$	(0.013	)

Balance Sheet Data:	3/31/09			12/31/08
Shs. Outstndg.		61,944,901			61,949,901
Working Capital	$	1,334		$	1,664
Total Assets	$	5,697		$	5,915
Total Liabilities	$	3,429		$	3,338
Shareholders Equity	$	2,268		$	2,577

SLIDE - 4

Organization & Management Team

Lawrence Siebert, President

Richard Larkin, CFO

Javan Esfandiari, Sr. VP, R&D

Rick Bruce, VP, Operations

Tom Ippolito, VP, Regulatory, QA/QC

Sandy Speer, Dir. Client Serv.

Dr. Gary Meller, Director

Katherine Davis, Director

Total Employment Q2- 2009 ~100

SG&A – 7

R&D – 18

Reg. & Clinical QA & QC - 7

Ops. – 69

SLIDE - 5

Regulatory Approvals Provide Access to

Large, Diverse & Global POCT Markets

TWO FDA-APPROVED PMA’S

USDA-APPROVED FACILITY & PRODUCT LICENSES

ISO CERTIFIED FOR GLOBAL MARKETS

SLIDE - 6

Point of Care Test Market

•	$5B+ 2008 Global Point of Care Test Market

–	12.5% Compounded Annual Growth Rate (CAGR)

–	Part of >$30B IVD Market

•	Provide Immediate Information

–	Simply, Accurately, Cost Effectively

•	Enable Improved Outcomes

–	Earlier Detection, Earlier Treatment

–	Lower Overall Cost of Care

SLIDE - 7

Chembio’s Business Strategy

• Continue Improved Results of Base Business - Primarily Comprised of Rapid HIV Tests Sold in the US and Globally

• Develop Funded Collaborations Using Our Patented Technology

• Create a Portfolio of Point of Care Tests for Infectious Diseases that Address Significant Unmet Market Needs

SLIDE - 8

Base Business of Rapid HIV Tests Marketed Globally

§	Marketed Exclusively by Inverness Medical in US. – Q1 2009 Sales to IMA Sales increased 56% – States Adopting 2006 CDC Recommendations

§	Sold Globally to Donor Funded Global Programs such as US' PEPFAR

(image of Inverness Sell Sheet and Image of Lateral Flow device)

SLIDE - 9

DPP® DUAL PATH PLATFORM

KEY DESIGN AND PERFORMANCE ADVANTAGES

•	Independent Sample Flow Path Enables Improved Sample Control

–	Improved Sensitivity vs. Lateral Flow

–	Use of More Challenging Sample Types

•	Improved Multiplexing Facilitated

–	Direct Binding (i.e., without conjugate)

–	Even & Uniform Delivery of Samples

•	Freedom to Operate

SLIDE - 10

DPP® R&D PIPELINE

•	Oral Fluid HIV

•	Syphilis Screen & Confirm

•	Global Health Products

•	Hepatitis C

•	Flu A/B Ag & Immunity Test

SLIDE - 11

DPP® HIV SCREENING TEST FOR USE WITH ORAL FLUID SAMPLES

•	Currently Only One Oral Fluid HIV Test in US Market.

•	Reauthorized $48B US AIDS Relief Program Evaluating to expand VCT & PMTCT in Africa

•	Secures Participation in Rapid HIV Test with Chembio Patented Technology

•	Does Not Compete with Chembio’s Lateral Flow Blood Tests marketed by Inverness

•	Submitted to PEPFAR; Ready to Begin US Clinical Trials 2009-2010

SLIDE - 12

DPP® HIV SCREENING TEST FOR USE WITH ORAL FLUID SAMPLES

(Movie of DPP operation)

SLIDE - 13

DPP® R&D PIPELINE

•	Oral Fluid HIV

•	Syphilis Screen & Confirm

•	Global Health Products

•	Hepatitis C

•	Flu A/B Ag & Immunity Tests

•

Other

SLIDE - 14

DPP® SYPHILIS SCREEN & CONFIRM

•	12MM New Cases/Yr. -250,000 in US and EU

•	Replaces Two Time Consuming Laboratory Tests with One Single POC Test - No Rapid Tests in US

•	Better Indication of Active Syphilis Disease

•	Enables POC Confirmation and Treatment without return visit

•	Developed in cooperation with CDC, currently in WHO study, FDA Pre-IDA stage

SLIDE - 15

DPP® R&D PIPELINE

•	Oral Fluid HIV

•	Syphilis Screen & Confirm

•	Global Health Products

•	Hepatitis C

•	Flu A/B Ag & Immunity Tests

•

Other

SLIDE - 16

Global Health Products

DPP Point of Care Test		Collaborating Organization
Tuberculosis		FIND
Malaria		FIND
HIV 1/2 Conf./Brazil		FIOCRUZ
Neglected Diseases: Leishmaniasis, Chagas, Leptospirosis, Leprosy		IDRI, NIH, FIOCRUZ

SLIDE - 17

DPP® R&D PIPELINE

•	Oral Fluid HIV

•	Syphilis Screen & Confirm

•	Global Health Products

•	Hepatitis C

•	Flu A/B Ag & Immunity Tests

•

Other

SLIDE - 18

Hepatitis C - Estimated 3MM Infections in US

Only 22% Diagnosed

•	Chembio Participating in CDC Study with DPP(R) HCV Test

(Image of DPP test)

SLIDE - 19

DPP® R&D PIPELINE

•	Oral Fluid HIV

•	Syphilis Screen & Confirm

•	Global Health Products

•	Hepatitis C

•	Flu A/B Ag & Immunity Tests

•

Other

SLIDE - 20

INFLUENZA: Ag DETECTION & DIFFERENTIATED Ab IMMUNE STATUS

Ag: Current Rapid Tests Need Improved Performance

Ab: Public Health Screening for Vaccination

DPP FLU A VS. LATERAL FLOW FLU A		Buffer	1.9 x 1011	1.9 x 1010	1.9 x 109	1.9 x 108	1.9 x 107	1.9 x 106	1.9 x 105	1.9 x 104	1.9 x 103	1.9 x 102	1.9 x 10
	Reader	0	86	87	91	54	22	11	5.6	3.1	0	0	0
	Visual	-	+++	+++	+++	+++	++	+	+	+	+/-	-	-
Leading Commercial lateral flow test (visual only)		-	+++	+++	+++	++	++	+	-	-	-	-	-

SLIDE - 21

FLU IMMUNE STATUS TEST

(Several images of DPP test)

SLIDE - 22

DPP® R&D PIPELINE

•	Oral Fluid HIV

•	Syphilis Screen & Confirm

•	Global Health Products

•	Hepatitis C

•	Flu A/B Ag & Immunity Tests

•

Other

SLIDE - 23

Other Current Projects

•	Veterinary Applications

–	Companion, Research, Wildlife

•	Drug Monitoring

•	Option of Quantitative Measurements at Point of Care with Simple Readers

SLIDE - 24

Strategy & Actions Taken to Enhance Shareholder Value

•	Simplified Capital Structure

•	Focused on Cash Flow

–	Created multiple non-dilutive development contracts and grants

–	Renegotiated payment schedules of license fees and accrued royalties

•	Reduced Expenses

–	Significant reduction of SG&A Expenses (including IR)

•	Improving Manufacturing Efficiency

–	Accelerating Product Transfers from R&D into Manufacturing

–	Established Technical Team within R&D – ADDED PERSONNEL

–	Invested in automation and other cost savings

SLIDE - 25

Strategy & Actions Taken to Enhance Shareholder Value

$(000s)	Year Ended December						First Quarter
	2008			2007			2009			2008
R&D Income	$	694		$	466		$	276		$	127
% Change		48.9	%					117.3	%

Gross Profit $		3,852			2,795			999			833
% Change		37.8	%					19.9	%

R&D Expenses		2,605			1,906			647			626
% Change		36.7	%					3.4	%

SG&A Wages		1,262			1,642			237			350
% Change		-23.1	%					-32.3	%
Investor Relations		124			225			3			59
% Change		-44.9	%					-94.9	%
Legal, accting		551			643			160			259
% Change		-14.3	%					-38.2	%

Total SG&A		3,317			3,765			676			1,018
% Change		-11.9	%					-33.6	%


		(000s)		Mar-09		Dec-08	Sep-08			Jun-08
			Cash		1,292	1,212		999			954

SLIDE - 26

Strategy & Actions Taken to Enhance Shareholder Value

•	New Products Completed :

–	DPP HIV – submitted to PEPFAR (global market)

–	DPP Syphilis Screen & Confirm – developed in cooperation with CDC, currently in WHO study, FDA Pre-IDE stage

–	DPP HIV 1&2 Confirmatory for Brazil – Ministry of Health evaluations being completed; development continuing for all other markets

–	DPP Canine Leishmaniasis – approval pending in Brazil

•	Hepatitis C and Influenza Products in Development

SLIDE - 27

Strategy & Actions Taken to Enhance Shareholder Value Plan

•	Improve Revenues and Operating Results

–	Increased sales in base HIV test business – US and Globally

–	New revenue streams from Brazil and other new customers

–	Integrate automation equipment into manufacturing

•	Sales & Marketing

–	New DPP HIV, Syphilis and Hepatitis C products to be featured at AACC (July, Chicago) & Medica (November, Dusseldorf) - the 2 most important industry meetings

–	Upgrade web site and create new marketing materials for trade and investors

SLIDE - 28

Strategy & Actions Taken to Enhance Shareholder Value Plan

Our goal is to show:

• Improved fundamental performance,

• No short or medium term funding needs,

• A Profitable Base Business Manufacturing Regulated Biotech products, and

• New Products Based on our Patented POC Platform to Address POCT Market Opportunities.

We believe that achievement of these goals will result in greater returns to our shareholders.

SLIDE - 29

For further information please visit our web site

www.chembio.com

SLIDE - 30