Revenues Up 24% - Flagship PIFA Heparin/PF4 Rapid Test Sales Double
Conference Call Scheduled for 10:30 a.m. ET Today
THOROFARE, N.J., March 23, 2015 (GLOBE NEWSWIRE) -- Akers Biosciences, Inc. (Nasdaq:AKER) (AIM:AKR.L), ("Akers" or the "Company"), a medical device company focused on reducing the cost of healthcare through faster, easier diagnostics, reports its financial results for the fiscal year ended December 31, 2014.
2014 Financial Highlights:
- 24% increase in revenue for 2014 to $4,427,174 (2013: $3,577,851)
- Loss before tax of $3,127,167 (2013: loss of $1,526,773)
- Cash and marketable securities of $9,720,802 (2013: $103,634)
- Sales of Akers' rapid test to detect a potentially fatal allergy to the blood thinner Heparin (PIFA Heparin/PF4) more than doubled in 2014 to $2,241,405
- First international sales of PIFA Heparin/PF4 products achieved during 2014 with $1,000,000 initial order from China
2014 Operational Highlights:
- Completed IPO on NASDAQ Capital Market in January 2014, raising approximately $15 million in gross proceeds
- Significant expansion of sales and marketing with senior managerial appointments in the US and EU; and sales executives placed in multiple strategic locations throughout US
- PIFA Heparin/PF4 products are now being marketed in the US by four leading healthcare product distributors as well as direct sales force
- Advancements in international sales strategy with product distribution agreements signed for territories including India, the Middle East, Australia, Singapore and multiple countries within Europe
- Initial order valued at $864,000 for rapid cholesterol tests for Australia, Singapore and the Middle East
- Established Joint Venture in China for marketing and distribution of Akers products
- Commenced clinical trials for the first rapid finger stick blood test for chlamydia
"January 2014's NASDAQ IPO facilitated a significant acceleration of our commercialization and product development process; and we are beginning to see the benefits," said Raymond F. Akers, Jr. PhD, Co-founder and Executive Chairman of the Board.
"The Company has been able to attract multiple experienced sales and marketing professionals both at head office and other strategic locations across the US as well as in the EU," continued Dr. Akers. "We believe the benefits are already evident in the growing number of distribution partnerships formed, the growth in revenues and, in particular, the more than doubling of sales of our flagship rapid test for detecting an allergy to the widely used blood thinner Heparin. We believe this rapid test has the capacity to save an average US hospital upwards of $1 million per annum while at the same time accelerating the process of diagnosis and therefore the speed at which the right treatment is given to the patient. I believe we are scratching the surface of a very substantial existing market for Heparin PF4 antibody testing which can be replaced with Akers' faster and more cost-effective single-use devices. This proposition is actively being communicated to US hospitals by the Company's marketing partners and by our internal sales team."
"2014 has seen Akers add new distributors in the Middle East, Australia, Singapore, India, France, Belgium, the Netherlands, Luxembourg, Switzerland and Lichtenstein. During the period the Company entered into a substantial Joint Venture agreement for the marketing and distribution of all Akers' rapid tests – excluding PIFA Heparin/PF4 – in China; while our Chinese distributor for PIFA Heparin/PF4 placed its first order for $1 million worth of the products in November 2014. This initial stocking order provides some insight into just how large a market we believe China can become for Akers. In fact, we believe China to be the second biggest potential market in the world for our PIFA Heparin/PF4 tests after the US."
"The Company's improving balance sheet and growing sales is also enabling Akers to fully develop a range of products that serve the nutraceutical and weight loss marketplaces. These are large marketplaces in all developed countries but nowhere more so than in the US where the Company is currently focusing its efforts. Akers' technology can measure biomarkers present in breath condensate related to various metabolic processes. As a result, Akers has used its proprietary, easy-to-use platform to design disposable breath tubes that measure ketone (acid) production associated with fat-burning and oxidative stress levels that relate to cellular damage and the development of many preventable diseases. The Company is developing a consumer-focused reagent device, and linking this device to an app for smartphones and tablets that can not only produce a result, but also track progress over time. Initial marketing activities have commenced for these products and the Company is preparing for commercialization."
"While the Company's sales and marketing professionals focus on growing sales of existing product lines, the development team continues to advance a pipeline of rapid tests designed to improve the process of diagnosis in large markets such as respiratory disease, where we are developing breath tests for lung cancer, for asthma and for chronic obstructive pulmonary disease; in diabetes, where we are developing a breath test to help diabetics rapidly evaluate their ketone levels without the need to provide blood or urine samples; in cardiovascular disease, where we are developing, on the commission of Konica Minolta, a rapid blood test for heart attacks; and in infectious diseases, where we are developing – among other tests - an on-the-spot finger stick blood test for chlamydia, one of the most prevalent of all STDs."
"What each of these areas has in common is that the market for testing is already established with existing diagnostic procedures which could be replaced with faster, easier and lower-costing technology."
"Akers exited 2014 with an improved balance sheet, higher revenues, with a more substantial sales and marketing function, new distribution partners in new markets and with a pipeline of tests advancing through the developmental process. Among our key goals for 2015 are the continued acceleration of PIFA Heparin/PF4 sales in the US; while assisting our international distributors in establishing these tests in overseas markets. Additionally we will in the coming months advance the consumer proposition for the Company's Wellness product line which we believe could be significant," added Dr. Akers. "I look forward to reporting further progress throughout the year ahead."
Results of Operations
Revenues for 2014 were approximately $4.4 million, representing a 24% increase on the prior year. Importantly the sales of the Company's current flagship PIFA Heparin/PF4 tests more than doubled in the year to over $2.2 million. A first order of $1 million worth of product from China boosted those sales.
The Company's overall gross margin percentage was 71% for 2014 as compared to 37% in 2013. The Company made a gross profit on those revenues of $3.25 million. After administrative, sales, research and exceptional costs, the Company recorded a loss before income tax of approximately $3.1 million which was in line with the Company's expectations. The loss before income tax was approximately double that of 2013 before the additional overheads from the growing personnel and additional stock market related costs began to be incurred.
The basic and diluted loss per common share was 66 cents as compared to 96 cents in 2013 (with the number of shares outstanding having increased as a result of the successful initial public offering on NASDAQ in 2014).
The Company is maintaining a very strong balance sheet as a result of the cash infusion from the January 2014 NASDAQ IPO. Akers had cash and marketable securities at the year-end of just over $9.7 million compared to $0.1 million at the end of 2013.
A summary report including the key financial statements for the fiscal year 2014 appears below. A Form 10-K containing the detailed financial statements is available for viewing on the Company's website at www.akersbiosciences.com or www.sec.gov.
Conference Call Information:
|Monday, March 23, 2015 at 10:30 a.m. Eastern Time|
|Conference ID: 8825228|
|Replays - Available through April 6, 2015|
|Conference ID: 8825228|
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 Vigo Communications (UK Investor Relations) Ben Simons / Alexandra Roper Tel. +44 (0)20 7016 9570 Email: firstname.lastname@example.org
Source:Akers Biosciences, Inc.