26 Nov 2012 07:00
26 November 2012
Akers Biosciences, Inc.
("ABI" or the "Company")
Distribution Partnership Forged in China
Akers Biosciences, Inc (AIM:AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products, is pleased to announce the signing of a distribution agreement ("Agreement") with Novotek Therapeutics Inc ("Novotek"), a Beijing-based pharmaceutical and in vitro diagnostic business development corporation, for ABI's innovative Particle ImmunoFiltration Assay ("PIFA") products. The multi-year agreement assigns exclusive sales and marketing rights for the products to Novotek in Mainland China ("Territory").
ABI's PIFA technology platform facilitates the rapid detection of antibodies known to be the major determinant in the pathogenesis of heparin-induced thrombocytopenia ("HIT"), a life and limb-threatening potential complication of treatment with the blood thinner, heparin. In essence, a HIT patient develops an allergy to heparin transforming the drug into a clotting agent. Individuals undergoing cardiac and major orthopaedic surgeries are especially vulnerable. The quick and accurate assessment of the patients HIT-antibody status, provided by the Company's PIFA Heparin/PF4 and the newly launched PIFA PLUSS PF4 rapid assays, is a key factor in a physician's ability to rule-out or diagnose the condition.
According to IVD Technology's April 2012 edition, the characteristics of the Territory's 1.3 billion population are showing trends toward an increase in health problems such as heart disease, diabetes, and cancer common in developed countries with an aging population. With this in mind, the Territory's aggregate IVD market has been estimated to exceed $2 billion with an annual growth rate of approximately 25%. With heparin being a cost-effective, anti-coagulant mainstay, especially in cardiac surgery, rapid HIT screening tests are in-demand. PIFA's entrance into Asia's largest market has already been received positively by Novotek's customer base through their pre-launch market research programs and Novatek has committed to funding the costs of obtaining State Food & Drug Administration ("SFDA") approval which will enable the product to be sold throughout China.
The Agreement spans an initial 9-year period with ABI retaining the right to terminate the agreement if Novatek fails to achieve progressive minimum annual sales. Subject to the minimum sales quantities outlined in the Agreement being achieved (of which there can be no guarantee) and it not being terminated by either party, the Agreement represents a potential $33.2m minimum contribution to ABI's revenues over the initial term. However, given the size of the market opportunity and with alternative rapid HIT screening tests largely absent from the Chinese clinical laboratory market place, the eventual contribution from the Agreement has the potential to be significantly higher.
Thomas A. Nicolette, Chief Executive Officer of ABI, commented,
"We have been exploring distribution opportunities in China for our HIT screening tests and after careful consideration, partnering with Novotek's well-established sales and marketing team is the right fit for ABI. The Directors believe that Novotek's knowledge of the Territory's aggregate healthcare market and their turn-key and professional approach to product commercialisation, will provide the Company with the selling and technical support structure required for the successful introduction and rapid growth of the PIFA HIT-screening franchise in Asia's largest IVD market. The Agreement has been structured to facilitate an initial ramp up period for Novotek to conduct local clinical trials that support market approvals from the SFDA, as well as an initial, regionalised selling campaign. Aggressive, growth-oriented, market penetration plans will quickly follow as implemented by Novotek to help ensure that the Company's minimum revenue expectations are met and ultimately exceeded."
Enquiries:
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Antony Legge or Emma Earl
Daniel Stewart & Company plc (Nomad and Broker)
Tel. +44 (0)20 7776 6550
About Akers Biosciences, Inc.
Akers Biosciences develops, manufactures, and supplies rapid, point-of-care screening and testing products designed to bring health status information, both rapidly and directly, to the consumer or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of proprietary platform technologies. The Company's state-of-the-art rapid diagnostic assays can be performed virtually anywhere, in minutes, since time is always of essence. ABI is aligned with high volume medical product distributors to help facilitate the Company's growth into a major, worldwide competitor in the field of rapid diagnostics. Additional information on the Company and its products can be found at www.akersbiosciences.com