Akers Biosciences Inc. AKER recently won a patent from the United States Patent and Trademark Office (USPTO) for its proprietary protein preparation. The preparation serves as the antigen and biologically active component for the Particle ImmunoFiltration (PIFA Heparin/PF4) Rapid Assay and PIFA PLUSS PF4 tests, which detect heparin-induced thrombocytopenia (HIT).
HIT is a lethal allergy caused by a commonly used blood thinning drug – Heparin. The allergies undo the effect of Heparin, changing into a clotting agent, which is particularly fatal for patients undergoing major cardiac, orthopedic or other surgeries.
Thrombocytopenia essentially means a low platelet count. By using the now-patented protein preparation, along with its flagship PIFA Heparin/PF4 Rapid Assay and PIFA PLUSS PF4 tests, Akers can identify heparin/platelet factor 4 antibodies, which will help in detecting HIT within a short span of time. This can reduce the possibilities of life-threatening complications, besides lowering the cost of treatment.
Of late, Akers’ flagship tests have gained significant traction. Notably, the rapid assay test is the only approved one in the U.S. As of Sep 30, 2015, the rapid assay products have been adopted by 200 U.S. hospitals, with an impressive growth rate of 20 new hospitals per month.
Management foresees Akers’ newly expanded sales and marketing team working on enhancing the visibility of the heparin allergy test in the U.S. Moreover, management is optimistic that the total hospital count will rise to 500 by Dec 31, 2016.
Recently, Akers announced an order to supply PIFA Heparin PF4/Rapid Assay products in China. Notably, these tests are the only ones approved by the Chinese FDA (CFDA). The order received from Akers’ Chinese distributor, NovoTek Therapeutics, is valued at approximately $2.5 million and will be supplied in portions throughout 2016. Sales are expected to start before the end of the first quarter of 2016.
We believe the PIFA Heparin PF4/Rapid Assay products will become key growth catalysts for the company. We are also impressed by Akers’ innovative product pipeline that includes hassle-free rapid test solutions for lung cancer, asthma, chronic obstructive pulmonary disease, diabetes and cardiac arrest.
Key Picks
Well-placed stocks in the medical sector are Baxter International BAX, Hill-Rom Holdings HRC and LeMaitre Vascular LMAT. All the stocks sport a Zacks Rank #1 (Strong Buy).
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