TIDMAKR
RNS Number : 6664V
Akers Biosciences, Inc.
01 February 2017
1 February 2017
This announcement contains inside information
Akers Biosciences, Inc.
Trading Update
Sales of PIFA Heparin PF/4 Rapid Assay Up 88% Over Prior
Year
Akers Biosciences, Inc. (NASDAQ: AKER) (AIM: AKR.L), ("Akers
Bio" or the "Company"), a developer of rapid health information
technologies, announces that total product revenue for the twelve
months ended December 31, 2016 is expected to be approximately $3.0
million, representing an increase of 66% over the prior year's
product revenue of $1.8 million.
Approximately 87% of product revenue was generated from sales of
the Company's flagship PIFA Heparin PF/4 Rapid Assay, which tests
for a condition associated with the widely used blood-thinner,
heparin.
Total sales in 2016 associated with this test are expected to be
approximately $2.6 million, representing growth of 88% over the
prior year.
Sales of PIFA Heparin PF/4 Rapid Assay products to U.S.
hospitals in H2 2016 enjoyed their strongest ever half year period,
providing strong trading momentum moving into the current year.
Approximately $0.5 million in sales of these products to China
were recorded in 2016. This was significantly below expectations of
sales to China in the period as the balance of the $2.5 million
order from NovoTek Therapeutics Inc. ("NovoTek"), the Company's
exclusive distributor for these products in China, announced in
March 2016, has not yet been released.
NovoTek has conveyed that it has faced additional regulatory
hurdles for pricing in China; but that it believes such hurdles
will be overcome in the near future, allowing for the release of,
and payment for, further product in line with end-user demand.
Akers Bio continues to believe that China will become a very
large market for PIFA Heparin PF/4 Rapid Assay products. NovoTek
has informed the Company that it now has key opinion leaders
positioned across 90 Chinese hospitals in 12 provinces and that it
expects high end-user demand once pricing approvals have been
obtained.
The Company expects 2017 revenues will continue to be dominated
by sales of PIFA Heparin PF/4 Rapid Assay products, as the strategy
to focus on integrated delivery networks, such as the Greater New
York Hospital Association, with access to very large numbers of
hospitals, begins to accelerate the numbers of hospital end-users.
Additionally, demand from China, once provincial pricing approvals
are granted, is expected to contribute strongly in the future;
although the Company currently has no visibility over the timing of
fulfilment of further orders.
Revenue from other product lines - in particular breathalyzer
products which contributed approximately $0.3 million of sales in
2016 - is expected to grow in 2017 as the customer base for Akers
Wellness products is further established; and orders for the
Company's rapid cholesterol self-test are received from First Check
Diagnostics, LLC, under the distribution agreement announced in
December 2016.
The Company expects to report financial results for the year
ended December 31, 2016 on or around March 23, 2017.
John J. Gormally, Chief Executive Officer of Akers Bio,
commented:
"We are seeing strong evidence of growing demand for PIFA
Heparin PF/4 Rapid Assay products in both the U.S. and China. Our
strategy to focus on integrated delivery networks and group
purchasing organizations in the U.S. is gaining traction, as
demonstrated in the 3-year agreement announced with the Greater New
York Hospital Association in December 2016 to introduce our tests
across their network of over 300 member hospitals and health
systems.
"While it is disappointing that additional regulatory hurdles in
China are delaying our distributor's ability to fulfil hospital
demand, we believe that, once this process is complete, Akers Bio
will be able to release further product as demand grows."
About Akers Biosciences, Inc.
Akers Bio develops, manufactures, and supplies rapid screening
and testing products designed to deliver quicker and more
cost-effective healthcare information to healthcare providers and
consumers. The Company has advanced the science of diagnostics
while responding to major shifts in healthcare through the
development of several proprietary platform technologies. The
Company's state-of-the-art rapid diagnostic assays can be performed
virtually anywhere in minutes when time is of the essence. The
Company has aligned with major healthcare companies and high volume
medical product distributors to maximize product offerings, and to
be a major worldwide competitor in diagnostics.
Additional information on the Company and its products can be
found at www.akersbio.com. Follow us on Twitter @AkersBio.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or
historical fact are forward-looking in nature and constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements reflect the Company's
expectations about its future operating results, performance and
opportunities that involve substantial risks and uncertainties.
These statements include but are not limited to statements
regarding the intended terms of the offering, closing of the
offering and use of any proceeds from the offering. When used
herein, the words "anticipate," "believe," "estimate," "upcoming,"
"plan," "target", "intend" and "expect" and similar expressions, as
they relate to Akers Biosciences, Inc., its subsidiaries, or its
management, are intended to identify such forward-looking
statements. These forward-looking statements are based on
information currently available to the Company and are subject to a
number of risks, uncertainties, and other factors that could cause
the Company's actual results, performance, prospects, and
opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements.
For more information:
Akers Biosciences, Inc.
John J. Gormally, Chief Executive Officer
Raymond F. Akers, Jr. PhD, Co-founder and Chief Scientific
Director
Tel. +1 856 848 8698
Taglich Brothers, Inc. (Investor Relations)
Chris Schreiber
Tel. +1 917 445 6207
Email: cs@taglichbrothers.com
finnCap (UK Nominated Adviser and Broker)
Adrian Hargrave / Scott Mathieson (Corporate Finance)
Steve Norcross (Broking)
Tel. +44 (0)20 7220 0500
Vigo Communications (Global Public Relations)
Ben Simons / Fiona Henson
Tel. +44 (0)20 7830 9700
Email: akers@vigocomms.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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