$AKER Akers Biosciences Reports Earnings for Fiscal Year

$AKER Akers Biosciences Reports Earnings for Fiscal Year 2017

Total Revenue Up 33%

THOROFARE, N.J., April 03, 2018 (GLOBE NEWSWIRE) -- Akers Biosciences, Inc. (AKER) (AKR.L), (“Akers”, “Akers Bio” or the "Company", a developer of rapid health information technologies, reports its financial results for the fiscal year ended December 31, 2017.

2017 Financial Highlights:

Total revenue up 33% to $3,929,527 (2016: $2,960,912)
PIFA Heparin/PF4 Rapid Assay products continue to account for the majority of revenues – however, growth was driven primarily by BreathScan Alcohol Breathalyzers, BreathScan OxiChek™ and the re-introduced Tri-Cholesterol test
Total revenue up across all geographic regions
USA: 23%
China: 25%
Rest of World: 247%
Gross profit margin remained strong at 63% (2016: 63%)
Gross profit up 34% to $2,509,564 (2016: $1,877,825)
Major expense areas increased 17% overall
General and Administrative expenses increased 36% to $4,082,313 (2016: $3,008,811) - the Company has been conservative in its approach to debt collectability and has reserved $494,436 for doubtful accounts during the year included in this figure
Sales and Marketing expenses reduced by 4% to $2,048,571 (2016: $2,137,282)
Research and Development expenses increased by 6% to $1,260,378 (2016: $1,188,868)
Loss from operations increased 25% to $(5,805,326) (2016: $(4,628,244) (excluding allowance for reversal of bad debts))
Balance sheet strengthened significantly with net proceeds of approximately $10.5 million from Public Offerings, a Private Placement and the execution of stock warrants in 2017
Cash and marketable securities at December 31, 2017 of $5,450,039 (2016: $122,701)
2017 Operational and Corporate Highlights:

Company continues to grow sales of a key product of the future: BreathScan OxiChek™ - a rapid breath test for oxidative stress
Ongoing discussions within the nutraceutical sector with regards to significant potential commercial partnership
United States Patent and Trademark Office allowed a patent covering the proprietary cartridge for the optical scanning device utilized in BreathScan Lync™ - the new bluetooth-enabled reading device from Akers Wellness™ which enables users to track the results of OxiChek™ via their mobile device, now including iOS devices
Broadened distribution from anti-aging, functional and integrative health and wellness treatment practitioners in the US to now include the US chiropractic sector
Established contractual relationship with a respected authority and key opinion leader within the US chiropractic sector to represent and promote OxiChek™
Television marketing campaign undertaken through the popular Balancing Act national television show on the Lifetime network - America's premier morning show that introduces positive solutions to busy, on-the-go, modern women

Sales of BreathScan Alcohol Breathalyzer products growing
Received initial stocking order for products in Australia and New Zealand
Demand re-emerging in Western Europe and the Far East

Shipments of rapid cholesterol self-test commenced to First Check Diagnostics, LLC, the exclusive distributor for this product in the US, for sale under their popular "First Check" brand, which is sold in major retailers including CVS, Rite Aid, Target, Kmart, Meijer, Giant Eagle, Stop & Shop, Giant and ShopKo

Continued progress in positioning PIFA Heparin/PF4 Rapid Assay products for sales to large integrated delivery network customers in the US

Company actively campaigning to drive PIFA Heparin/PF4 Rapid Assay products to the next level by pursuing further clinical pathway studies, heparin-induced thrombocytopenia (HIT) awareness campaigns and a strategic focus on clinical end-users

Began marketing rapid test for heparin-induced thrombocytopenia to hospital facilities in Puerto Rico

In May 2017, the Company submitted its PIFA Chlamydia Rapid Assay - the first rapid blood test for this highly prevalent sexually transmitted disease - to the US Food and Drug Administration (FDA) for 510(k) approval
The Company continues to work proactively with the FDA to advance the approval process. The Company is in communication with the FDA regarding a potential requirement for additional data. In the event that the FDA requires additional data to support the application, the Company is committed to completing further studies as expeditiously as possible in order to complete the FDA 510(k) process

New directors elected with diverse and relevant skills to steer Akers Bio through next phase of growth and product commercialization
John J. Gormally (the Company’s CEO since November 2015) elected to the Board of Directors – 35+ years of experience in the healthcare industry
Bill J. White elected as Non-executive Director – 30+ years of experience in financial management, operations and business development
Richard C. Tarbox III elected as Non-executive Director – 40+ years of management experience in the medical device and diagnostics sector of the healthcare industry
Christopher C. Schreiber elected as Non-executive Director – 30+ years of experience in the securities industry

US commercial team strengthened with appointment of Pamela E. Hibler as Vice President, Sales and Distribution, North America – 25+ years of success in medical device sector sales
Chief Executive Officer’s Commentary

Akers Bio grew stronger in 2017 on a number of levels. We strengthened our Board of Directors, with the appointments of highly experienced directors in the fields of healthcare, medical devices, finance and capital markets; we strengthened our leadership team, particularly in Sales and Distribution; we strengthened our product positioning across core products including PIFA Heparin/PF4 Rapid Assay and BreathScan OxiChek™; and we strengthened our balance sheet, with net proceeds from Public Offerings a Private Placement and the executions of stock warrants totaling approximately $10.5 million. The combined effect of these accomplishments will, I believe, be reflected in accelerated growth in the months and years ahead.

A key product of our future is BreathScan OxiChek™ - the first commercialized product from the Akers Wellness™ line which applies the Company’s proprietary breath analysis technology to the large and growing health and wellness market. OxiChek™ is a rapid breath test for oxidative stress – a good indicator of a person’s overall health and wellbeing. It works with BreathScan Lync™ - the new bluetooth-enabled reading device from Akers Wellness™ which enables users to track the results of OxiChek™ via their mobile device. The Company initiated discussions during the year within the nutraceutical sector with regards to a significant potential commercial partnership for OxiChek™. We further broadened distribution from anti-aging, functional and integrative health and wellness treatment practitioners in the US to now include the chiropractic sector; and undertook a major television marketing campaign on the Lifetime network.

I am encouraged that OxiChek™ and BreathScan Lync™ continued to contribute incrementally over the course of the year to our MPC Biosensor platform sales, which grew overall by 237% to $950,946. It is also notable that sales of BreathScan Alcohol Breathalyzer products – another commercialized product in this platform category – enjoyed a stronger year, boosted by a $267,750 initial stocking order from Australia and New Zealand; and interest re-emerging in Western Europe and the Far East.

Akers Bio is proud to see its over-the-counter rapid self-test for cholesterol on the shelves of major US retailers as shipments commenced to First Check Diagnostics, LLC, the exclusive distributor for this product in the US, for sale under their popular "First Check" brand, which is sold in stores including Rite Aid, Target, Kmart, Meijer, Giant Eagle, Stop & Shop, Giant and ShopKo. We are encouraged by demand and have received re-orders in 2018.

Revenue from the Company’s PIFA Heparin/PF4 Rapid Assay products decreased 13% to $2,232,684 (2016: $2,577,148) during the year ended December 31, 2017. Additional revenue from PIFA-related components, totaling $500,000, is included in other revenue. We are disappointed by this plateau and continue to believe the Company has significant market share upside for these assays. Accordingly, we have adjusted our marketing strategy to target large integrated delivery network (IDN) customers in the US While these IDNs take longer to penetrate than smaller, individual hospitals, once they are converted, we believe they will drive a step-change in revenues. Other components of our strategy to break through this plateau include clinical pathway studies, heparin-induced thrombocytopenia (HIT) awareness campaigns and a strategic focus on clinical end-users (particularly cardiac and orthopedic surgeons). We expect to announce a number of exciting developments in this area in the coming months.

In July, we recruited Pamela E. Hibler as Vice President, Sales and Distribution, in particular to lead the sales strategy for PIFA Heparin/PF4 Rapid Assay products in North America. I have worked with Pamela prior to Akers Bio. She has more than 25 years of success in medical device sector sales and I am excited about the work that she and our expanding team of Regional Sales Representatives reporting to her are doing to take PIFA to the next level.