News blog

Akers Biosciences Inc

• BY: Andrew Hore |
• POSTED: 22/08/2013 |

Diagnostics firm Akers Biosciences Inc managed to move into profit in the first half of 2013.

The profit of $90,000 is compared with a loss of $1.02m in the first half of 2012. Revenues more than trebled from $787,000 to $2.64m with the growth coming from the disposable breath alcohol detectors sold through Chubeworkx Guernsey, which owns 80m shares in Akers, and a licence payment relating to them. There was also a $200,000 licence payment for the VIVO product., which is a breath test measures oxidative stress levels that relate to cellular damage and the development of many preventable diseases.

There are many other uses for the breath technology in areas such as Alzheimer’s disease. 

Cash flowed out of the business in the first half because of a sharp jump in trade receivables. There was also an increase in capitalised development costs from $110,000 to $394,000. All this was more than covered by the $1.6m invested by Chubeworkx. There was $1.55m in the bank at the end of June 2013.

Clinical trials of the PIFA Heparin Platelet Factor 4 Rapid Assay have begun in the Chinese market. Management is hopeful that the product could be on sales in the first half of 2014. There are also plans to launch in the EU. First half revenues from this assay in the US were 2% higher at $611,000.

The geographic market for the breath alcohol detectors will widen in the second half and there should be new product launches.

Akers wants to raise $15m at the same time as joining the NASDAQ Capital Market, although the filing, which has not yet become effective, says it could raise up to $17.25m.

At 1.28p a share, up 0.13p, Akers is valued at £3.57m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2013_47.pdf