Sale of test maker Chembio clears bar for shareholder approval on fourth try

The sale of Chembio Diagnostics Inc. in Medford and Bay Shore to a French firm has finally been completed, the companies announced this week.

A slim majority of 50.9% of Chembio shares were tendered for sale to Biosynex SA in France as of Wednesday evening’s deadline. The first deadline of March 14 had to be extended three times because not enough shares were put forward  for the $17.2 million deal, according to securities filings.

Investors’ reluctance to endorse the sale appeared to be tied to the contention of at least five law firms, specializing in shareholder-rights litigation, that Biosynex wasn’t paying enough for Chembio. Biosynex, founded in 2005, paid 45 cents per share — unchanged from Jan. 31 when the proposed sale was first announced. 

Chembio shares were delisted from the Nasdaq stock market as of Friday after the sale closed. They’ve traded between 19 cents and $1.24 in the past year.

“The integration [of Chembio and Biosynex] gives us direct access to the American market, which we believe is the most important,” said Larry Abensur, CEO of Biosynex, adding that Chembio will operate as a subsidiary.

Both companies manufacture and sell rapid diagnostic tests. Chembio, founded in 1985, specializes in the detection of HIV, syphilis, COVID-19, malaria, Zika and other infectious diseases.

“We plan to exploit the many strong synergies between our businesses to create significant cost savings in an integrated organization,” Abensur said. “We are excited about becoming a global player in the rapid-diagnostic test market.”

Chembio reported a loss of $23.3 million last year on revenue of $49.5 million. The company last reported an annual profit — $500,000 — in 2013, according to the S&P Global Market Intelligence database.

Chembio has struggled financially since mid-2020, when the U.S. Food & Drug Administration revoked an Emergency Use Authorization for a COVID antibody test, saying inaccurate results were produced in some instances.

Since then, the workforce has fallen to 188 employees from 337 in 2021, the filings show.

Abensur and a Chembio spokesman didn't immediately respond on Friday to a request for comment about how the sale will impact Chembio employees. 

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.