Akers Biosciences, Inc. (AIM:AKR.L) (Nasdaq:AKER), (the "Company"
or "ABI"), a leading designer and manufacturer of rapid diagnostic
screening and testing products, reports its financial results for
the first quarter ended March 31, 2014.
First Quarter Highlights:
- Completed IPO on NASDAQ Capital Market, raising approximately
$15 million in gross proceeds in an underwritten offering
- Revenue for the period ended March 31, 2014 totaled $1,173,919,
primarily driven by sales of CHUBE disposable alcohol breathalyzers
and PIFA Heparin/PF4 Rapid Assay products
- Net loss of $595,600 mainly due to costs associated with NASDAQ
IPO
- Gross margin of 45% achieved in the first quarter of 2014 due
to increase in average product selling price
- EBITDA: Net loss of $526,540
"The first quarter of 2014 saw the achievement of a
transformational event in the closing of the Company's fully
underwritten offering on January 28, 2014, and the admission of the
Company's shares for trading on NASDAQ," said Raymond F. Akers, Jr.
PhD, Co-founder and Executive Chairman of the Board. "The Company
received approximately $15 million in gross proceeds, before
underwriting discounts, commissions and offering expenses which
allows us to focus exclusively on the rapid commercialization of
our product portfolio."
Dr. Akers continued, "not only did the successful NASDAQ IPO
equip the Company with the necessary financial resources to execute
its business plan, it also had the effect of broadening our
shareholder base which spans two continents (with our dual stock
market listings in both the United Kingdom and the United
States)."
"Key to the achievement of our commercialization strategy,"
added Dr. Akers, "is the expansion of our internal sales
organization and further development of our sales channels. I am
pleased to state that we have made significant progress already
this year in both of these areas with the recruitment of Edwin C.
Hendrick as Executive Vice President, Sales and Marketing and the
expansion of distribution agreements with third party
distributors.
"Mr. Hendrick is a recognized leader in product positioning and
the development and execution of sales and marketing strategies in
the medical device industry. In a career in healthcare that began
with Abbott Diagnostics and now spans nearly 25 years, he has led
the commercial aspects of diagnostic and healthcare services
companies ranging in size from $10 million to $1 billion in
revenues. In every case, Mr. Hendrick contributed to more than
doubling or tripling revenues and profitability of those
businesses, leading to successful sales of his past three companies
to industry leaders. We are building out the team of sales
executives under Mr. Hendrick's leadership and look forward to
continuing our strategic recruitment program."
ABI's total revenue for the three months ended March 31, 2014,
was $1,173,919 compared to $571,473 in the three months ended
December 31, 2013. Revenue for the three months ended March 31,
2014 was primarily driven by the sales of alcohol breathalyzer
products and of the Company's PIFA Heparin/PF4 Rapid Assay
products.
ABI's gross profit margin, as a percentage of product revenue,
continued to improve, increasing to 45% for the three months ended
March 31, 2014. The improvement in gross profit margin was derived
from an increase in the average selling price of products in the
three months ended March 31, 2014.
General and administrative expenses for the three months ended
March 31, 2014 totaled $653,682. The initial public offering on the
NASDAQ Capital Market and the related regulatory requirements led
to significant increases in expenses for professional services,
stock market and investor relations activities, staffing and
management fees during the quarter.
Sales and marketing expenses for the three months ended March
31, 2014 totaled $211,098. The Company had significant declines in
royalties and external sales commissions that were somewhat offset
by increases in internal sales commissions and consulting fees for
the exploration of additional markets for our products during the
period.
The Company's dedicated technical sales account executives have
moved away from a direct selling model for PIFA Heparin/PF4 Rapid
Assay products to one that works in tandem with over 300 sales
representatives of ABI's US distribution partners, Cardinal Health
and Fisher HealthCare. This reorganization and need to dedicate
time and resources to building relationships with distributor
representatives hampered domestic sales growth in the short term
but has set the stage for an enhanced selling effort in 2014.
For the three months ended March 31, 2014, the Company generated
a net loss of $595,600. A significant portion of the loss is
attributable to the increased costs for professional services
related to regulatory compliance and reporting associated with the
NASDAQ IPO, completed in January 2014.
Earnings before interest, depreciation, taxes and amortization
was a loss of $526,540 for the three months ended March 31,
2014.
"The successful NASDAQ IPO on January 28, 2014 provided
financial stability and, with that, the opportunity to exclusively
focus on the execution of our business plan. The first quarter of
2014 has seen the Company begin to put its capital to work through
investment in sales and marketing capabilities and product
development initiatives," added Dr. Akers. "We look forward to
updating shareholders on our progress periodically."
The Form 10-Q containing the financial statements for the first
quarter of 2014 is available for viewing on the Company's website
at www.akersbiosciences.com or www.sec.gov.
Conference Call Information:
Wednesday, May 14, 2014 at 10:15
a.m. Eastern time |
Domestic: |
1-877-941-2321 |
International: |
1-480-629-9666 |
Conference ID: |
4683752 |
Webcast:
http://ir.akersbiosciences.com/events.cfm |
|
Replays - Available
through May 28, 2014 |
Domestic: |
1-877-870-5176 |
International: |
1-858-384-5517 |
Conference ID: |
4683752 |
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. The
Company 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 on our website 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:
Raymond F. Akers, Jr. PhD
Executive Chairman of the Board
Akers Biosciences, Inc.
Tel. +1 856 848 8698
Brendan Hopkins
RedChip Companies, Inc. (US Investor Relations)
Tel. +1 407 644 4256 x134
Antony Legge / Emma Earl
Daniel Stewart (Nomad and Broker)
Tel. +44 (0)20 7776 6550
Ben Simons / Alexandra Roper
Vigo Communications (UK Investor Relations)
Tel. +44 (0)20 7016 9570
akers@vigocomms.com
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