11 Apr 2011 07:00
Embargoed: 0700hrs 11 April 2011
Akers Biosciences, Inc.
("ABI" or the "Company")
Supply Agreement
&
Acquisition of Breath Condensate Collection Technology
Akers Biosciences, Inc. (AIM:AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products, is pleased to announce a strengthening of its relationship with Pulse Health, LLC ("Pulse") as their organization transitioned its commercialisation efforts from a focus on the Free Radical Enzymatic Device ("FReD") to Revelar, a system to measure aldehydes in the breath. Aldehydes are indicators of free radical damage that is thought to negatively impact healthy cells. Millions of people take antioxidant supplements to counteract this process; the Revelar system, which consists of an electronic analyser and disposable breath tubes, provides healthcare professionals with a rapid method to measure the effectiveness of a patient's antioxidant regimen.
As a result of Pulse's change in strategy, in early Q2 2011, ABI renegotiated the technology transfer and supply agreement it had previously executed with Pulse in 2008. In this new agreement, ABI purchased all Technology relating to non-invasive Breath Condensate Collection Technology which Pulse had previously acquired from ABI; this includes ownership of US patent #7,285,246. In exchange for this Technology, ABI released Pulse from any obligation to make further payments under the 2008 Agreement, which totals $2.325 million.
Also, ABI and Pulse agreed to enter into a new Supply Agreement under which ABI will sell Pulse breath tubes for use in the Revelar devices. Pulse will buy tubes of the kind covered by either of the ABI Patents until Pulse has reached a purchase threshold of $2.325 million worth of such tubes. Once this threshold has been met, Pulse may 1) continue to purchase the tubes from ABI, 2) have the tubes made by a third party while paying ABI a royalty per tube or 3) discontinue use of the technology and ABI Patents. The Company expects this threshold will be achieved over approximately the next 12 months.
Thomas A. Nicolette, President and Chief Executive of ABI, commented,
"This transaction has important and positive implications for ABI. First, since the 2008 Agreement had precluded ABI from developing other breath condensate products outside of a select few tests, the Company's product development path is now cleared with complete freedom to operate in the Micro Particle Catalyzed (MPC) Biosensor technology platform. Further, the Revelar tube Supply Agreement provides a revenue stream that is positive for the Company's short and possibly longer-term prospects."
Enquiries:
Thomas A. Nicolette, President and CEO
Tel. +1 856 848 8698
Antony Legge or Noelle Greenaway
Daniel Stewart & Company plc (Nomad and Broker)
Tel. +44 (0)20 7776 6550
Ben Simons
M: Communications
Tel. +44 (0)20 7920 2340
About Akers Biosciences, Inc.
Akers Biosciences develops, manufactures, and supplies rapid, point of care screening and testing products designed to bring healthcare 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 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. ABI has aligned with major healthcare companies and high volume medical product distributors to maximise product offerings, and to be a major worldwide competitor in diagnostics. Additional information on the Company and its products can be found at www.akersbiosciences.com