TIDMAKR
RNS Number : 0479B
Akers Biosciences, Inc.
30 March 2017
30 March 2017
This announcement contains inside information
Akers Biosciences, Inc.
Preliminary Unaudited Earnings Highlights for Fiscal Year
2016
Sales of Flagship Rapid HIT Test +85% over 2015
Akers Biosciences, Inc. (NASDAQ: AKER) (AIM: AKR.L), ("Akers
Bio" or the "Company"), a developer of rapid health information
technologies, announces preliminary unaudited earnings highlights
for the fiscal year ended December 31, 2016.
The Company will apply for a 15-day extension to file the Form
10-K containing its 2016 earnings so as to allow additional time
for the Company and its auditors to incorporate data from certain
subsequent events and complete the Company's management discussion
and analysis. Accordingly, there will be no conference call on
Friday, March 31, 2017, as previously announced. The details of a
rescheduled conference call and earnings publication date will be
notified in the near future.
2016 Financial Highlights:
-- Total revenue up 40% to $2,960,912 (2015: $2,115,050)
-- Growth driven by 85% increase in sales of flagship heparin
allergy test to $2,557,148 (2015: $1,391,017)
-- Total product sales of $2,957,162 exceeded 2015 sum by approximately $1.2 million or 65%.
-- Gross profit margin increased to 63% (2015: 55%) resulting in
gross income of $1,877,825 (2015: $1,164,258)
-- Significant reductions in major expense areas:
o General and Administrative expenses reduced by 51% to
$3,008,811 (2015: $6,193,125)
o Sales and Marketing expenses reduced by 16% to $2,137,282
(2015: $2,543,286)
o Research and Development expenses reduced by 15% to $1,188,868
(2015: $1,406,895)
-- Reversal of an allowance for bad debts of $1,299,609 in
exchange for inventory and a prepaid royalty
-- These factors contributed to a markedly reduced net loss
attributable to shareholders of $3,303,538, down 65% compared to
2015 (2015: $9,311,913)
-- Cash and marketable securities at December 31, 2016 of
$122,701 (2015: $4,427,163) bolstered by net proceeds of $1,736,213
from January 13, 2017 public offering
-- As at December 31, 2016, current assets totaled $3,186,944,
current liabilities totaled $1,697,430 and working capital was
$1,489,514
2016 Operational Highlights:
-- Successfully implemented significant price increase for
flagship PIFA Heparin PF/4 Rapid Assay products
-- Sales of PIFA Heparin PF/4 Rapid Assay products to U.S.
hospitals enjoyed their strongest ever half year period during H2
2016, providing momentum moving into the current year
-- PIFA Heparin PF/4 Rapid Assay products recorded sales of
$493,850 to China in 2016 - further orders are anticipated when
pricing approvals are received in key provinces
-- Three-year agreement signed with GNHYA Services, a group
purchasing organization affiliated with Greater New York Hospital
Association (GNYHA), to introduce PIFA Heparin PF/4 Rapid Assay
products across GNYHA's network of over 300 member hospitals and
health systems
-- Exclusive U.S. distribution agreement signed for rapid
cholesterol self-test with First Check Diagnostics, LLC for sale
under their "First Check" brand, which is sold in major retailers
including CVS, Rite Aid, Target, Kmart, Meijer, Giant Eagle, Stop
& Shop, Giant and ShopKo (initial order received after
year-end)
-- Completed highly successful clinical trials for rapid breath test for diabetic ketoacidosis (BreathScan(R) DKA) and rapid blood test for chlamydia (PIFA/Chlamydia Rapid Assay); as well as a highly successful clinical study for rapid breath test for oxidative stress (BreathScan OxiCheck(TM))
o Overall agreement between the BreathScan(R) DKA test and gold
standard hospital blood test was 92%
o Overall agreement between the PIFA/Chlamydia Rapid Assay and
the reference laboratory method was 96% in patient populations of
acute infection and historical exposure
o Overall agreement between OxiChek(TM) and the standard
reference laboratory blood testing method (TBARS) was 99.5%
-- Strengthened commercial team with the appointments of Doug
Carrara and Tony Saporito in senior sales and marketing roles
following the appointment of new CEO, John J. Gormally in November
2015
o Reshaped U.S. sales strategy for PIFA Heparin PF/4 Rapid Assay
products to target large integrated delivery networks which require
fewer, but more experienced, sales personnel
John J. Gormally, Chief Executive Officer of Akers Bio,
commented:
"We continued to see strong evidence during 2016 of growing
demand for our PIFA Heparin PF/4 Rapid Assay products. This is
reflected in an uplift in sales for these products of 85% in the
period. We believe it is a notable achievement to have successfully
implemented our evidence-based outcome proposition that supported
our pricing for our PIFA Heparin PF/4 Rapid Assay within the
market. This fact speaks volumes about our branded flagship
offering that has the ability to provide significant savings for
hospitals through the implementation of our test for platelet
factor four antibodies.
Our strategy to focus on integrated delivery networks and group
purchasing organizations in the U.S. is gaining traction, as
demonstrated in the three-year agreement announced with the GNYHA
Services in December 2016 to introduce our tests across their
network of over 300 member hospitals and health systems.
Furthermore, we believe that once additional regulatory hurdles
in China are complete, Akers Bio will be able to release further
product there as demand grows, creating a very attractive non-U.S.
revenue stream for PIFA Heparin PF/4 Rapid Assay products.
As revenues increase, our cost base is decreasing allowing for
cash flow breakeven to move into our sights. We have recorded
material reductions in all key areas of expense. This is reflected
in a significant reduction in the loss from operations, down from
approximately $9.3 million in 2015 to approximately $3.3 million in
2016. The impact of this is a markedly reduced loss attributable to
shareholders of approximately $3.3 million, down 65%.
I am excited about the future not only for our currently
commercialized tests - in particular PIFA Heparin PF/4 Rapid Assay
and Tri-Cholesterol "Check"- but also for our near-term pipeline
which is underpinned by hugely successful clinical trials and
studies completed during 2016 for rapid tests for cholesterol,
diabetic ketoacidosis and oxidative stress. The success of these
trials reinforces the value we believe lies within our proprietary
platform technologies. Each of the markets targeted by our pipeline
of new tests is significant and we believe Akers Bio's new
generation of testing technology will greatly enhance the patient
experience while reducing costs for the healthcare system.
I expect 2017 to be characterized by further growth in our
flagship PIFA Heparin PF/4 Rapid Assay product line, sales of our
rapid cholesterol test direct to consumers through major U.S.
retailers under the "First Check" brand, growing sales from our new
generation of app-connected wellness products and, subject to
regulatory approvals, the launch into the market of the first rapid
blood test for chlamydia and a breath test for nutritional ketosis
or fat burning.
We look forward to publishing our Form 10-K earnings statement
in due course."
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.
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.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For more information:
Akers Biosciences, Inc.
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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