13th Nov 2015 07:52
LONDON (Alliance News) - Akers Biosciences Inc Friday warned that it expects to post a larger loss for 2015 and a lower cash balance, as its overall outlook for the year is "wholly dependant" on the company obtaining and fulfilling a number of "substantial orders" for its PIFA Heparin/PF4 Rapid Assay test products.
The PIFA Heparin/PF4 Rapid Assays are used to test for allergic reactions to widely used blood-thinner Heparin. These tests were approved for use in China last Wednesday.
Akers noted that this approval will be a catalyst for further orders, and this combined with a resurgence of demand in the EU for alcohol breathalysers will drive a "significantly stronger fourth quarter" than all three quarters of 2015 so far.
However, its outlook remains dependant on orders for the Heparin allergy tests and other products outside of the US in the remainder of the year, and Akers noted that without such sales, revenue would be materially below market expectations.
As a result of a "significantly increased cost base" and other factors such as the impairment of some assets, will result in a larger loss for the full year regardless of the out-turn in terms of revenue.
For the third quarter to end-September Akers reported a pretax loss of USD2.3 million, widened from a pretax loss of USD1.1 million a year before, as a result of higher costs related to personnel, marketing, product launches, research and development and a one-off impairment of historic patents and trademarks no longer contributing to sales.
Product revenue was USD169,473 for the quarter, down from USD359,980 a year before, which the company attributed to lower than usual distribution stock depletion of the PIFA Heparin/PF4 Rapid tests during the summer months, which it believes will return to normal levels in the fourth quarter.
"Whilst trading for the first three quarters of the year has been disappointing, the core US PIFA Heparin/PF4 Rapid Assay business, combined with the additional potential offered from international sales and from our Akers Wellness line, provides us confidence in the long term growth prospects of Akers Bio," said Co-Founder and Executive Chairman Raymond Akers Jr in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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