6 Jan 2012 07:00
6 January 2012
Akers Biosciences, Inc.
("ABI" or the "Company")
Trading Update
Akers Biosciences, Inc. (AIM:AKR), is an innovative designer and manufacturer of rapid diagnostic screening and testing products.
The Company announces that chiefly due to issues with an order from Pulse Health, revenues for 2011 will be significantly below expectation with turnover expected to be approximately US $2.2M and that consequently proforma losses will be in the region of US $1.9M, though these figures may be subject to change.
In June 2011, it was announced that ABI had secured a purchase order totaling US$3,242,200 to manufacture and supply Revelar Breath Tubes to Pulse Health, LLC under the Company's supply agreement. This was the first purchase order under the supply agreement and manufacturing commenced immediately at ABI's New Jersey facility. It was anticipated that the majority of this order would be fulfilled during 2011.
In the latter part of 2011, Pulse experienced difficulties in the manufacture of their reagent which was to be supplied to ABI. This resulted in severe delays in the Company's production schedule. ABI continues to manufacture the Tubes currently, but the quantities delivered to Pulse are lower than originally planned due to Pulse's reagent formulation problems. As a result of these events that were out of the Company's control, it is with regret that ABI informs the market that turnover in relation to the Revelar Breath Tubes during 2011 will be approximately US$1.2M lower than expected.
In addition, sales of BreathScan, the Company's line of disposable breath alcohol detectors have slowed over the prior year, partially due to the US government's failure to achieve the passing of its budget. This has lead to a strategic shift in the way ABI will structure its breath alcohol business segment. Moving forward, the products will be integrated into comprehensive alcohol awareness programmes focused on government and corporate sectors. To view the new initiative, please visit www.breathscan.com
With regard to the Company's core product, sales of the PIFA Heparin/PF4 Rapid Assay continued to show improvement during 2011 with revenues approximately 23 per cent higher than in 2010. (PIFA sales 2011, H1 $583,473; H2 $643,192). The PIFA HPF4 test is the only FDA-cleared device that quickly determines if a patient, being treated with the blood thinner Heparin, may be developing a drug allergy that can result in life- and limb-threatening blood clots.
Q1 2012 will mark the launch of the PIFA PLUSS PF4 rapid assay, a product line extension of ABI's growing heparin-allergy platform.
Thomas A. Nicolette, Chief Executive of ABI, commented,
"Although we were profoundly disappointed in the severe delay related to our supply agreement with Pulse, the increase in PIFA sales, the market acceptance of the BreathScan alcohol awareness programmes, and our pending product launches keep us focused on success during 2012."
Enquiries:
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Noelle Greenaway/Antony Legge, Corporate Finance
Martin Lampshire, Corporate Broking
Daniel Stewart & Company plc (Nominated Adviser 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 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