5 Jan 2009 07:00
Embargoed: 0700hrs, 5 January 2009
Akers Biosciences Inc.
("ABI" or the "Company")
ABI Signs Technology Transfer & Supply Agreement for Breath Test Technology
Akers Biosciences, Inc (AIM:AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products, is pleased to announce today that it signed an agreement on 31 December 2008 to sell the intellectual property pertaining to the Free Radical Enzymatic Device ("FRED") and future non-invasive exhaled breath test technology (the "Technology") to Pulse Health, LLC ("Pulse"), based in Portland, Oregon USA, for a cash sum of $3,000,000 (the "Agreement"). ABI will further benefit from an exclusive manufacturing agreement to supply FRED Aldehyde Assay Tubes at a price fixed for three years and also earn a per tube royalty fee for every FRED Aldehyde Assay Tube sold over that period. In addition, ABI has the possibility to extend the exclusive manufacturing agreement beyond the initial 3-year term and Pulse has agreed to fund any future R&D projects that ABI undertakes on their behalf.
Notwithstanding the Agreement, ABI will retain the rights related to and solely own certain other tests incorporating the Technology, namely:
- BreathScan® Alcohol Detector
- Legal Limit® POV Safety Keychain
- Breath Alcohol Check® .02 Detection System
- Breath Ketone Check®
- Breath PulmoHealth Check®
Pulse was formed to investigate new opportunities to market unique health and wellness evaluation devices. In 2006, Pulse approached ABI with the challenge of applying the Company's patented breath condensate technology to develop a breath detection system to measure free radical activity in the body. Free radicals are substances implicated in numerous disease processes and are often associated with the consumption of processed foods and alcohol and the use of tobacco products. The project, funded by Pulse, was extremely successful and led to the creation of FRED, the first non-invasive, easy-to-use test that helps monitor levels of free radicals and assess the effectiveness of nutritional supplements in the human body. Antioxidants, as found in nutritional supplements, are widely believed to counter the effects of free radical activity.
Pulse has assembled a team of international scientists in diagnostics, breath condensate technology, nutrition and free radicals to become the leader in the development of breathalyzer technology. FRED provides the first consumer breath test to measure free radical damage. Pulse's team, in partnership with ABI, developed FRED for the consumer market, clinical testing and, by 2010, medical applications. For the first time in history, through FRED, Pulse can provide millions of consumers low cost access to information on whether their nutritional supplements, diet and exercise programs are effective in reducing free radical damage. Beginning in 2009, Pulse will develop assays using the breath technology developed with ABI for new applications. Pulse is excited about this transaction and looks forward to a continuing long term relationship with ABI. This transaction represents a significant step for Pulse to acquire the technology platform necessary to become the industry leader in breath-based assays of a broad range of biomarkers.
Thomas A. Nicolette, President and Chief Executive Officer of ABI, said,
"This is one of the most important commercial agreements that ABI has signed to date. We are delighted that what began as a funded project to develop a specific application has in fact led to a much broader relationship between our companies. From a financial standpoint, ABI not only realizes a cash sum of $3m, but will also benefit from a royalty stream and exclusive manufacturing agreement, both with positive implications to our bottom line."
Chris Marsh, President and Chief Executive Officer of Pulse Health, said,
"Pulse Health identified the growing opportunity to create a simple non-invasive test to monitor free radical activity and furthermore that ABI had the technology and know-how to develop such a product. In less than two years we have achieved this goal and are pleased to acquire the Technology today. Given ABI's technical expertise, we look forward to continuing to work with them for many years to come."
Enquiries:
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Ben Simons
M: Communications
Tel. +44 (0)20 7153 1540
Alasdair Younie
Arbuthnot Securities Limited
Tel. +44 (0)20 7012 2000
About Akers Biosciences
Akers Biosciences, Inc. 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 products 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.akersbiosciences.com.
About Pulse Health
Pulse Health, LLC develops and distributes non-invasive tests of important biomarkers, with its flagship product being FRED, the first consumer breathalyzer that measures the effects of free radical damage in the human body. With consumers seeking clear and simple ways to monitor their long term health trends, FRED provides an elegant yet scientifically sophisticated solution that has received substantial attention from the scientific community. Pulse has evaluated significant health trends where consumer and medical measurement are in high demand, and is responding with assays that are simple, clear and quantitative, thus positioning itself as a leader in the non-invasive testing arena. Additional information on the Company and its products can be found at www.pulsehealthllc.com.