1 Feb 2017 07:00
1 February 2017
This announcement contains inside information
Akers Biosciences, Inc.
Trading Update
Sales of PIFA Heparin PF/4 Rapid Assay Up 88% Over Prior Year
Akers Biosciences, Inc. (NASDAQ: AKER) (AIM: AKR.L), ("Akers Bio" or the "Company"), a developer of rapid health information technologies, announces that total product revenue for the twelve months ended December 31, 2016 is expected to be approximately $3.0 million, representing an increase of 66% over the prior year's product revenue of $1.8 million.
Approximately 87% of product revenue was generated from sales of the Company's flagship PIFA Heparin PF/4 Rapid Assay, which tests for a condition associated with the widely used blood-thinner, heparin.
Total sales in 2016 associated with this test are expected to be approximately $2.6 million, representing growth of 88% over the prior year.
Sales of PIFA Heparin PF/4 Rapid Assay products to U.S. hospitals in H2 2016 enjoyed their strongest ever half year period, providing strong trading momentum moving into the current year.
Approximately $0.5 million in sales of these products to China were recorded in 2016. This was significantly below expectations of sales to China in the period as the balance of the $2.5 million order from NovoTek Therapeutics Inc. ("NovoTek"), the Company's exclusive distributor for these products in China, announced in March 2016, has not yet been released.
NovoTek has conveyed that it has faced additional regulatory hurdles for pricing in China; but that it believes such hurdles will be overcome in the near future, allowing for the release of, and payment for, further product in line with end-user demand.
Akers Bio continues to believe that China will become a very large market for PIFA Heparin PF/4 Rapid Assay products. NovoTek has informed the Company that it now has key opinion leaders positioned across 90 Chinese hospitals in 12 provinces and that it expects high end-user demand once pricing approvals have been obtained.
The Company expects 2017 revenues will continue to be dominated by sales of PIFA Heparin PF/4 Rapid Assay products, as the strategy to focus on integrated delivery networks, such as the Greater New York Hospital Association, with access to very large numbers of hospitals, begins to accelerate the numbers of hospital end-users. Additionally, demand from China, once provincial pricing approvals are granted, is expected to contribute strongly in the future; although the Company currently has no visibility over the timing of fulfilment of further orders.
Revenue from other product lines - in particular breathalyzer products which contributed approximately $0.3 million of sales in 2016 - is expected to grow in 2017 as the customer base for Akers Wellness products is further established; and orders for the Company's rapid cholesterol self-test are received from First Check Diagnostics, LLC, under the distribution agreement announced in December 2016.
The Company expects to report financial results for the year ended December 31, 2016 on or around March 23, 2017.
John J. Gormally, Chief Executive Officer of Akers Bio, commented:
"We are seeing strong evidence of growing demand for PIFA Heparin PF/4 Rapid Assay products in both the U.S. and China. Our strategy to focus on integrated delivery networks and group purchasing organizations in the U.S. is gaining traction, as demonstrated in the 3-year agreement announced with the Greater New York Hospital Association in December 2016 to introduce our tests across their network of over 300 member hospitals and health systems.
"While it is disappointing that additional regulatory hurdles in China are delaying our distributor's ability to fulfil hospital demand, we believe that, once this process is complete, Akers Bio will be able to release further product as demand grows."
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.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
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.
For more information:
Akers Biosciences, Inc.
John J. Gormally, Chief Executive Officer
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