Financial Results for First Quarter 2015

U.S. Sales of Flagship PIFA Heparin/PF4 Rapid Test Sales Continue to Grow

May. 14, 2015 7:01 am |  More About Akers Biosciences


THOROFARE, N.J., May 14, 2015 (GLOBE NEWSWIRE) -- Akers Biosciences, Inc. (Nasdaq:AKER) (AIM:AKR.L) (the "Company" or "Akers Bio"), a medical device company focused on reducing the cost of healthcare through faster, easier diagnostics, reports its financial results for the first quarter ended March 31, 2015.

Q1 Highlights

  • Revenue for Q1 2015 was $510,047
     
  • Domestic sales of PIFA Heparin/PF4 Rapid Assay products for the period increased to $338,361
     
  • Gross profit margin of 56%
     
  • Loss before income tax was $1,321,799
     
  • Cash and marketable securities at March 31, 2015 was $8,394,553
     
  • Sales and Marketing leadership team strengthened with appointments of John C. Cheneval (Senior VP, Sales and Marketing) and Chris Ellis (VP, Global Marketing)
     
  • Added multiple sales executives across the U.S. to support distributors – benefits of which we expect to see beginning in Q2
     
  • Achieved ISO 13485 (2003) Certification which accelerates the process of gaining regulatory clearance for medical devices in certain countries, allowing the Company to get products to market faster
     
  • Awarded patent by European Patent Office for novel blood separator technology and method of separating a fluid fraction from whole blood

Raymond F. Akers, Jr. PhD, Co-founder and Executive Chairman, commented:

"Domestic sales of our flagship rapid test to detect an allergic condition associated with the blood thinner heparin continue to rise, with sales of these products up 17% compared with Q1 2014. What is particularly encouraging is that this strong growth does not yet include the anticipated benefits of either the price increase (which took effect on May 1, 2015 for new customers and will be gradually implemented from July 2016 for existing customers), or from the expanded U.S. sales team."

"We estimate this test has the capacity to save the average U.S. hospital over $1 million a year. That's not just because our tests cost less than the existing testing procedures. By providing a near-instant diagnostic result that rules out a heparin allergy, we can often help physicians avoid the unnecessary use of very expensive medicines and the associated medical monitoring costs when a heparin allergy is otherwise suspected. This, we believe, will be the basis for driving domestic sales growth of these tests in the months and years ahead."

"The Q1 financial performance is in line with management's expectations for the period. Like other medical device companies in the early phases of commercialization, our revenues are staggered as we receive initial stocking orders from new distributors in new territories. The effect is that some quarters' sales, such as Q1 2015, are lighter than others due to the timing of product shipments to new markets. We expect this trend to continue and remain confident of the revenue prospects for the full fiscal year."

"The reduction in revenues for Q1 2015 when compared to Q1 2014 is due to our alcohol breathalyzer distributor, ChubeWorkx Guernsey Limited, placing no orders in the period for those products. That distributor was positioning the product last year for sales predominantly in France where the opportunity has since been impeded by the French Government's postponement of the fine that was to be imposed for drivers failing to possess breathalyzers in their vehicles. The decline in revenues from this distributor was therefore anticipated and, while we are exploring some opportunities in the U.S. for this product, international sales of alcohol breathalyzers are not core to Akers Bio's strategy at present as we continue to focus on higher margin tests."

"I was delighted to welcome, in Q1, more highly accomplished sales and marketing professionals both to the senior leadership team and out in the field across the U.S. The ability to attract people of their caliber to drive product commercialization is precisely why the cash infusion from 2014's NASDAQ IPO was such an important catalyst for Akers Bio."

"Our operational goals throughout 2015 are four-fold: firstly, to work with our newly expanded sales and marketing team to unlock the true growth potential of the heparin allergy test in the U.S.; secondly, to assist our distribution partners to establish international sales for these – and other – tests – particularly in China where sales have already begun; thirdly, to establish sales channels for our Akers Wellness products aimed at the substantial health and wellness sector including weight-loss and anti-aging; and, finally, to bring to market new, highly disruptive rapid testing solutions for conditions including chlamydia and diabetic ketoacidosis."

The Form 10-Q containing the financial statements is available for viewing on the Company's website at www.akersbiosciences.com or at www.sec.gov.

Conference Call Information:

Thursday, May 14, 2015 at 10:30 a.m. Eastern Time
US: 1-888-797-2982
International: 1-913-312-0950
Conference ID: 6690033
Webcast: http://ir.akersbiosciences.com/events.cfm
 
Replays - Available through May 28, 2015
US: 1-877-870-5176
International: 1-858-384-5517
Conference ID: 6690033

ABOUT AKERS BIOSCIENCES, INC.

Akers Biosciences 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.akersbiosciences.com. Follow us on Twitter @AkersBio.

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.

CONTACT: For more information:
         
         Akers Biosciences, Inc.
         Raymond F. Akers, Jr. PhD
         Executive Chairman of the Board
         Tel. +1 856 848 8698
         
         finnCap (UK Nominated Adviser and Broker)
         Geoff Nash / Scott Mathieson (Corporate Finance)
         Steve Norcross (Broking)
         Tel. +44 (0)20 7220 0500
         
         Taglich Brothers, Inc. (US Investor Relations)
         Chris Schreiber
         Tel. +1 917 445 6207
         Email: cs@taglichbrothers.com
         
         Vigo Communications (UK Investor Relations)
         Ben Simons / Fiona Henson
         Tel. +44 (0)20 7016 9570
         Email: akers@vigocomms.com

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GlobeNewswire
May 14, 2015 - 7:01 AM EDT


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