Akers Biosciences Inc. AKER recently signed an agreement with Aero-Med, a division of Cardinal Health CAH, to distribute its disposable breathalyzer — BreathScan OxiChek. Shares rallied 32.8% to close at $2.55 on Jun 27.
OxiChek, a part of the Akers’ Wellness product line, rapidly determines level of oxidative stress in the body by measuring the level of certain free radicals. Clinicians can use the test to monitor and adjust their clients’ routine of nutritional supplementation in order to manage oxidative stress.
The test is also compatible with BreathScan Lync, the new Bluetooth-enabled reading device from Akers. This enables clinicians to monitor oxidative stress through the use of a mobile device.
Meanwhile, Aero-Med initially plans to start distributing the product in six New England states, first through its direct sales force and eventually through an e-commerce platform. The company plans to focus on areas with high numbers of anti-aging, functional and integrative health and wellness treatment centers.
We believe the distribution deal is a major step forward for Akers to fast penetrate the U.S. market. Growing adoption of rapid test devices also opens up a new source of revenue for the company. Akers also plans to develop breathalyzers for determining asthma, chronic obstructive pulmonary disease and lung cancer.
Akers expects revenue contribution from the alcohol, ketones (METRON) and oxidative stress tests in full-year 2016. The company’s new sales and marketing team will continue to increase product awareness amongst healthcare providers. Hence, growth rates are expected to improve throughout the year.
Notably, in the first quarter of 2016, MicroParticle Catalyzed Biosensor (MPC) product sales surged almost 57% from the year-ago quarter. This growth was primarily driven by higher sales of BreathScan Alcohol Breathalyzer products (53% of the MPC product revenues) in Great Britain and increased domestic demand for the product.
Apart from the MPC products, Akers’ flagship PIFA Heparin/PF4 Rapid Assay product continues to gain solid traction in the domestic market as well as China. In the first quarter, domestic sales soared 80% primarily due to the new pricing. However, higher prices did not hurt demand, which Akers expects to increase as the company starts targeting hospital networks going forward.
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