8 Jan 2009 07:00
Embargoed: 0700hrs, 8 January 2009
Akers Biosciences Inc.
("ABI" or the "Company")
Trading Update
Akers Biosciences, Inc (AIM:AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products, is pleased to provide an update on trading for the year ended 31 December 2008.
The Company has enjoyed a significant step change in activity across the group both scientifically and operationally. Management's objective has been to accelerate the commercialisation of ABI's product portfolio, develop new revenue streams and further capitalize on the strategic capabilities of the six existing platform technologies developed over the past decade. The significant advances made in each of these areas during the last year include:
The appointment of Thomas A. Nicolette as Chief Executive Officer of the Company to effect the commercialisation strategy;
The investment of £2.3 million of new money into the Company;
The elimination of all debt including convertible loan notes;
The achievement of operational profitability and first net profit in the Company's history;
The expansion of distribution of the Company's flagship PIFA®Heparin/Platelet Factor4 Rapid Assay though the appointment of additional distributors in the USA and European markets, with minimum guarantees;
Licensing agreement signed for the Lithium "Check" ® System;
The continuing development of several new tests including the Free Radical Enzymatic Device ("FRED") (evaluation of free radical activity), Ketone "Check"®(testing for Ketoacidosis associated with diabetes) and PulmoHeath "Check"®(early detection of lung cancer), all with exceptional commercial potential;
The first major US over-the-counter distribution agreement for several products including the Company's Tri-cholesterol "Check"® test which will shortly appear in major retail outlets across North America; and
The first significant technology transfer, pertaining to the FRED, together with a three year minimum supply agreement and royalty contract (as announced on 5 January 2009).
The Company is pleased to announce that adjusted profit before tax for the year to 31 December 2008 is expected be in line with market expectations. In addition this will be the first annual net profit that the Company has reported. The second half of the year was significantly more profitable than the first, owing largely to the sale of the FRED's intellectual property rights. This profitability has been achieved on lower than expected turnover of approximately $6.5 million, principally due to inaction by the US Congress on major parts of the fiscal 2009 Budget in September 2008, thus delaying the anticipated reorder of certain product refills supplied by the Company to the US Military. It is currently anticipated that Congress will return to these matters following the inauguration of the new US President.
Cash at year end is expected to be approximately $5.0 million. The Company is expected to release its preliminary results for the year ended 31 December 2008 in March 2009.
Thomas A. Nicolette, President and Chief Executive Officer, commented,
"2008 was a defining year for ABI in which we proved that our excellent science could be translated into profitable recurring business. As such the Company was able to attract new investment, pay off debt and move into 2009 with a strong balance sheet and cash in the bank. Our core tests, as they stand today, are only scratching the surface of their potential markets so there is a huge amount of work to be done to see that they achieve their full commercial potential in the future.
Our attention in 2009 will be focused on growing these markets worldwide through enhanced marketing efforts and new distribution channels. This programme combined with the anticipated launches of our new breath condensate tests, Ketone "Check"® in the diabetes field and PulmoHealth "Check"® in the lung cancer field, offers tremendous growth opportunity for ABI."
Enquiries:
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Ben SimonsM: CommunicationsTel. +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.