ex99_2.htm

Slide 1:

Investor Presentation

November 2009

Slide 2:

Forward Looking Statements

Statements contained herein that are not historical facts are 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 3:

•	Medford, NY Manufacturer of Proprietary Point of Care Rapid Diagnostic Tests – 100 Employees

•	FDA Approved Lateral Flow (LF) Rapid HIV Tests

–	Marketed in the U.S. by Inverness Medical. Sales Increase thru Q3YTD of 120% to $3.45MM vs. $1.57MM in 2008.

•	Total Revenues through 9 Months of $10.3MM, up 19.6%. Profitable in Q2, Q3 and YTD.

•	New Product Pipeline Enabled by Patented Dual Path Platform (DPP®) Rapid, Point-of-Care-Testing (POCT) Platform

Slide 4:

Organization & Management Team

Lawrence Siebert, CEO & Chairman

Richard Larkin, CFO

Javan Esfandiari, Sr. VP R&D

Rick Bruce, VP Operations

Tom Ippolito, VP Reg., QA/QC

Sandy Speer, Dir. Client Serv.

Dr. Gary Meller, Director

Katherine Davis, Director

Total Employment Approx . 100

S, G&A 7

Ops. 69

R&D 18

Reg. & Clinical, QA & QC 7

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:

$6.7B Global Point of Care Test (POCT) Market

Europe $3,254 (52%), U.S. Hosp. $1,772 (28%), U.S. Decentralized sites $591 (9%), etc (see PDF for more details).

At 7% Projected Increases, even with Large Low-Growth Segments (e.g., Glucose), Global POCT Market is Fastest Growing Segment of $39.5B In-Vitro Diagnostics Market, Projected to Reach $8.8B by 2012

Source: Independent Market Research Report

Slide 7:

POCT Market Drivers

•	Reduce Patient Stays and Costs, Improve Patient Outcomes with Prompt & Early Diagnosis

–	Improve Therapeutic Intervention

–	Prevent Needless Admissions

–	Simplify Testing Procedures to Reduce Testing Costs

–	Avoid Delays from Central Lab Batching

–	Eliminate Need for Return Visit (s)

Slide 8:

Overview of Current Products & Revenue

2008 – Total Revenue $11,049,600

LF-HIV, Int’l - $7,008,800 (64%), LF-HIV-U.S. - $2,183,500 (20%), Other - $1,037,468 (9%), R&D $693,803 (6%), DPP $126,000 (1%).

Slide 9:

Overview of Current Products & Revenue YTD

Increases from U.S. Market, DPP® and R&D Contracts

None Mos. Ended 9/30/09 – Total Revenue $10,282,807

LF-HIV, Int’l - $4,379,276 (42%), LF-HIV-U.S. - $3,450,000 (34%), Other - $796,233 (8%), R&D $954,058 (9%), DPP $619,530 (6%), Royalty Income $83,710 (1%).

Slide 10:

FDA Approved Rapid HIV Tests

Distributed in US Exclusively by Inverness Medical

•	120% YTD Increase thru Q3 in US Market Revenues

–	$3.45MM vs. $1.570MM

–	Gains Based Upon Market Expansion and Increased Market Share

•	Competitive Features

–	CLIA Waived

–	Two Formats

–	99.7% Sensitivity; 99.9% Specificity

–	Proprietary Formulation Enables 24 Month Stability

–	Strong Marketing Partner

Slide 11:

Chembio’s Rapid HIV Tests

are Distributed Globally

•	Approved for Procurements by UN,WHO, CDC/USAID (PEPFAR)

•	Registered/Approved in several countries in South America, Asia, and Africa

•	CE Mark Pending

Slide 12:

Estimated Projected Total Annual Sales of U.S. POCTs

2008-2012

Unit Growth of 79% on Sales Growth of 31% Creating Opportunity for Multiplexed Products

Chart showing Sales as follows:

2008 - $2,363

2009 - $2,529

2010 - $2,705

2011 - $2,895

2012 - $3,098

Source: Independent Market Research Report

Slide 13:

PATENTED DUAL PATH PLATFORM (DPP®)

KEY DESIGN AND PERFORMANCE ADVANTAGES vs. LATERAL FLOW

•	Independent Sample Flow Path Enables Improved Sensitivity & Use of More Challenging Sample Types

•	Improved Multiplexing Facilitated by Direct Binding, Uniform Delivery of Samples

•	US Patent #7,189,522. Patent Protection Pending Worldwide

Slide 14:

DPP® Global Health Products

•	Four New Products for Brazilian Public Health Including Five Band POC HIV Confirmatory Test

•	Three Year $3MM NIH SBIR Phase II Grant for Human Leptospirosis

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

Slide 15:

DPP® HIV 1/2 Screen Assay

•	Designed for Use with Oral Fluid & Blood

•	$50MM/5MM Unit US Market Growing 15-20%/Year

•	Opportunity to Gain Market Share from Sole Competitor

•	US Clinical Trials Commencing Q4 2009

Slide 16:

DPP® Syphilis Screen & Confirm

•	First POCT For Syphilis In US

•	Provides Better Indication Of Active Disease

•	Enables Confirmation & Treatment At POC

•	Pre-natal Testing

•	FDA Pre-IDE Submitted Q3

Developed in collaboration with the U.S. Centers for Disease Control

Slide 17:

INFLUENZA

MULTIPLEX ANTIGEN & IMMUNITY TESTS

•	Current Lateral Flow Rapid Tests Need Improvement

•	Initial Data Show Improved Performance with DPP®

•	Multiplex Immune Status Serology Test H1N1 Project

Slide 18:

Hepatitis-C (HCV) & HIV/HCV Comb.

•	Estimated 3MM HCV Infections in US

–	Only 22% Diagnosed

–	25% Co-infection with HIV

–	Major Cause of Liver Disease

–	New therapeutics from Vertex, etc. will drive demand for Dx

•	No HCV Point of Care Test in US

•	Chembio Participating in Pre-Clinical CDC Study with both prototypes

Slide 19:

Base Business & DPP® Product Pipeline

CHART (See – PDF for Details)

Slide 20:

Selected Comparative Historical Financial Results

2005-2008 and 9 Mos. of 2009

		9 Mos Ended			For the Years Ended
	(000s)	Sept 30, 2009				2008			2007			2006			2005
Total Revenues		$	10,283		$	11,050		$	9,231		$	6,503		$	3,941
Cost of sales			6,053			7,198			6,435			4,894			2,996
Gross Profit			4,230			3,852			2,796			1,609			945
			41.1	%		34.9	%		30.3	%		24.7	%		24.0	%
R&D Expense			2,127			2,605			1,907			1,402			1,365
SG&A Expense			2,002			3,317			3,765			4,787			2,878
Operating Income (Loss)			100			(2,071	)		(2,876	)		(4,580	)		(3,298	)
Other Inc. (Expense)			(8	)		122			249			(415	)		46
Net Income (Loss) - Stkhldrs			92			(1,949	)		(2,627	)		(4,995	)		(3,252	)
Pref. Stock Expenses			-			-			5,645			3,210			3,517
Net Loss		$	92		$	(1,949	)	$	(8,272	)	$	8,205	)	$	(6,769	)
Net Income (Loss) - per Share		$	0.00		$	(0.03	)	$	(0.57	)	$	(0.80	)	$	(0.88	)
Avg. No. Shares (Millions)			61.945			61.267			14.608			10.293			7.705
Working capital		$	2,098		$	1,664		$	3,229		$	5,113		$	831
Total assets			6,342			5,915			6,585			7,907			3,016
Total liabilities			3,534			3,338			2,322			2,297			1,964
Equity (Deficit)			2,808			2,577			4,263			(940	)		1,053

Slide 21:

Selected Comparative Historical Financial Results

Quarter and YTD 9/30/2009 & 9/30/2008

		Three Mos Ended						Nine Mos Ended
	(000s)	Sept 30, 2009			Sept 30, 2008			Sept 30, 2009			Sept 30, 2008
Total Revenues		$	4,364		$	3,516		$	10,283		$	8,598
Cost of sales			2,495			2,125			6,053			5,362
Gross Profit			1,869			1,391			4,230			3,236
			42.8	%		39.6	%		41.1	%		37.6	%
R&D Expense			777			759			2,127			1,952
SG&A Expense			784			868			2,002			2,696
Operating Income (Loss)			308			(236	)		100			(1,412	)
Other Inc. (Expense)			(1	)		(1	)		(8	)		14
Net Income (Loss) - Stkhldrs			307			(237	)		92			(1,398	)
Pref. Stock Expenses			-			-			-			-
Net Loss		$	307		$	(237	)	$	92		$	(1,398	)
Net Income (Loss) - per Share		$	0.00		$	(0.00	)	$	0.00		$	(0.02	)
Avg. No. Shares (Millions)			61.945			61.945			61.945			61.036
Working capital		$	2,098		$	1,656		$	2,098		$	1,656
Total assets			6,342			6,486			6,342			6,486
Total liabilities			3,534			3,378			3,534			3,378
Equity (Deficit)			2,808			3,108			2,808			3,108

Slide 22:

Selected Balance Sheet Data

($000s)
Balance Sheet Data	Sept '09		Dec. '08
Cash		$1,877		$1,212
Accts. Receivable		1,135		809
Inventories		1,374		1,819
Other Current Assets		309		225
Total Current Assets		4,695		4,066
Net Fixed Assets		642		881
Other Assets		1,005		968
Total Assets		6,342		5,915
Total Current Liab.		2,597		2,402
Total Other Liab.		937		936
Total Liabilities		3,534		3,338
Total Equity		2,808		2,577
Total Liabilities & Shareholders Equity		6,342		5,915

Slide 23:

CEMI Selected Share Data

Stock data as of 10/30/09 (see PDF for details)

Options and Warrants:

Options and Warrants (MM)			Avg. Ex. Price

Options (3.86MM held by mgmt. & board)		5.75	$0.16
Warrants - Exp.Dates
	1/28/10	4.96	$0.47
	10/5/11	2.64	$0.48
	2/5/12	.07	$0.81
Total Warrants		7.67

Total Options & Warrants		13.42

Fully Diluted shares		75.36

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