19 Feb 2013 07:00
Embargoed: 0700hrs, 19 February 2013
Akers Biosciences, Inc.
("ABI" or the "Company")
Update on French Certification for Disposable Breath Alcohol Detectors and Product Launch
Trading Update
ABI, a leading designer and manufacturer of rapid diagnostic screening and testing products, is pleased to announce that its proprietary disposable breath alcohol detectors will be formally launched to the French market this afternoon by ABI's partners Chubeworkx Guernsey Ltd (previously called Sono International Limited) ("Chubeworkx") and (en)10 (Global) Ltd (previously called Breathscan International Limited) ("(en)10").
(en)10 has been informed that the national reference laboratory of France, Laboratoire National de Métrologie et d'Essais("LNE"), has recommended that the Company's breath alcohol detector is in compliance with the quality criteria defined in French Standard NF X 20-702 for disposable breathalysers. ABI's breathalysers have now passed all mandated chemical and mechanical tests at the newly announced 100% performance criteria and the final award of the NF Marque ("NF Mark") from the Comité de Marque is expected this week. The NF Mark enables the breathalysers be marketed and sold to consumers in and around France and the Comité de Marque has permitted (en)10 to commence marketing activities with a formal launch for the product in Paris this afternoon.
As of July 2012, a French law mandates that every driver of a motorised land vehicle must possess unused disposable breathalyser kits bearing the NF Mark; two kits are recommended. The legislation impacts any and all drivers on French roads, including foreign passport holders and drivers of foreign vehicles. Last month, French Interior Minister, Manual Valls, directed CNSR, the French National Council for Road Safety, to review and report on the efficacy of the decree. On 13 February 2013, CNSR came out in favour of the legislation with a recommendation that it should be retained and extended to drivers of two wheeled vehicles of capacity of 50cc. As a result, the near-term and on-going demand for NF-Marked breathalysers is expected be quite substantial. Approximately 34 million French nationals own a motorized vehicle, and a portion of the estimated 81 million foreign visitors entering the country annually will do so by auto or may rent a vehicle while touring. In fact, close to 19 million Britons enter France via auto across ferries or through the Channel Tunnel each year.
As was previously announced in 2012 communications, the Company negotiated an exclusive, multi‐year breathalyser distribution and supply agreement with Chubeworkx, to take advantage of the French market opportunity, including a $1 million licensing fee. Chubeworkxsubmitted a purchase order to ABI in late December 2012 for 3.5 million CHUBE-branded, disposable Breath Alcohol Detectors with an order value of $1.05 million in aggregate. In tandem, Chubeworkx remitted $550,000 of the $1 million licensing fee; the NF Mark issuance will now trigger payment to ABI of the remaining $450,000 with further orders expected as product demand is generated.
Thomas A. Nicolette, Chief Executive Officer of ABI, commented: "We are honored that our detector has been certified against the French Standard and will now bear the prestigious NF Mark. (en)10 is poised to enter the French breathalyser market today, at the launch event in Paris, with a comprehensive sales and marketing program for their CHUBE-branded detectors. Prior to ABI's certification, there are only three disposable breathalyser brands that carry the NF Mark. Having streamlined our manufacturing processes in 2012, the Company is ready to deliver product to Chubeworkx on a schedule that will help meet French and EU market demand. As a result, we are hopeful that potential revenues associated with our MPC breathalyser technology will support ABI's growth and bolster shareholder value."
"The Company is also pleased to report that sales of its test for heparin-induced thrombocytopenia ("HIT"), PIFA Heparin/PF4, have continued to grow strongly with revenues for the first six weeks of 2013 exceeding those for the whole of the first quarter of 2012. Further, the initial ramp up period for Novotek China is very encouraging, but did not add to this sales increase. Hence, we are confident PIFA sales will continue to gain traction."
Enquiries:
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Antony Legge or James Thomas
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 several 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
About (en)10 (Global) Ltd
Combining leading science innovations and clever design, (en)10 provides people the means to effect simple, precise, low-cost alcohol screening and the thinking, programmes and products to encourage broader, positive changes in attitudes to responsible alcohol consumption. It provides a fresh approach to achieving a healthy work culture and a more productive business: cutting costs and improving lives. Additional information on the Company and its products can be found at www.en-10.com