Chembio buys M’sia’s rvr diagnostic for rm15.7 million

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KUALA LUMPUR: Nasdaq-listed company Chembio Diagnostic Inc is to acquire the entire stake in Malaysia’s RVR Diagnostic Sdn Bhd for US$3.75 million (RM15.7 million).

The deal entails Chembio acquiring RVR Diagnostic’s expertise in developing and commercialising innovative point-of-care (POC) tests for human immunodeficiency virus (HIV), syphilis and dengue fever.

“Malaysia has an extraordinary and well-functioning industry support infrastructure and RVR is a timely investment for the company,” Chembio Diagnostic chief executive officer John Sperzel III said after the signing of an agreement here between the two entities.

He said Malaysia will be Chembio’s main hub in this region as the company intends to expand into Southeast Asia and other parts of the world.

RVR, a Malaysian Technology Development Corporation grant recipient, was formed in Malaysia to develop and commercialise innovative POC tests for diseases important to Malaysia and Asia.

RVR’s mission is to develop POC diagnostic solutions in areas with high unmet needs both in the US and globally.

Chembio develops, manufacturers, licenses and markets POC diagnostic tests and technology for the detection of infectious diseases.

“We have technology that applies to diseases like dengue, malaria and zika that we will bring to Malaysia,” he added.

Sperzel said the company is also investing in other regions in the country mainly in commercial and marketing.

RVR managing director Mac Vajuram said the main attraction for the acquisition is the skills set and knowledge of the RVR team which has consistently demonstrated its ability to deliver quality products.

“We also believe that with the help of Chembio, we can train more scientists in this country, where the in-vitro diagnostic market is still young and growing,” he added.

Malaysian Technology Development Corporation (MTDC) chief executive officer Datuk Norhalim Yunus said RVR is the second MTDC biotech startup company to be acquired by a foreign listed entity.

“This shows that Malaysians have the capability to build world-class biotech startups,” he said. — Bernama