Akers Biosciences expects 66% revenue increase, falls short in China
February 1, 2017Akers Biosciences, a developer of rapid health information technologies, expects the total revenue for the 2016 year to be about $3.0 million, which represents an increase of 66% over the prior year’s product revenue of $1.8 million.
About 87% of product revenue was driven by the PIFA Heparin PF/4 Rapid Assay sales, which tests for a condition related to the widely used blood-thinner, heparin.
Total sales in 2016 connected with this test are expected to be about $2.6 million, 88% more compared to the the previous year.
The test was mostly sold in the U.S., while the sales in China has failed Akers’s expectations. Namely, the order from exclusive distributor for these products in China, announced in March 2016, has not yet been released due certain price regulatory issues.
Akers Bio said that it still believes China will become a very large market for PIFA Heparin PF/4 Rapid Assay products.
John J. Gormally, Chief Executive Officer of Akers Bio, said: “We are seeing strong evidence of growing demand for PIFA Heparin PF/4 Rapid Assay products in both the U.S. and China. Our strategy to focus on integrated delivery networks and group purchasing organizations in the U.S. is gaining traction, as demonstrated in the 3-year agreement announced with the Greater New York Hospital Association in December 2016 to introduce our tests across their network of over 300 member hospitals and health systems.
“While it is disappointing that additional regulatory hurdles in China are delaying our distributor’s ability to fulfil hospital demand, we believe that, once this process is complete, Akers Bio will be able to release further product as demand grows.”
