Akers Biosciences, Inc.
("ABI" or the "Company")
Distribution Partnership Forged in China
Akers Biosciences, Inc. (AIM:AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products is pleased to announce the signing of a distribution agreement ("Agreement") with NovoTek Therapeutics, Inc. ("NovoTek"), a Beijing-based pharmaceutical and in vitro diagnostic business development corporation, for ABI's innovative rapid, heparin-induced thrombocytopenia ("HIT") screening assays. The multi-year agreement assigns exclusive sales and marketing rights for the products to NovoTek in Mainland China ("Territory").
ABI's PIFA technology platform facilitates the rapid detection of antibodies known to be the major determinant in the pathogenesis of HIT (a life- and limb-threatening potential complication of treatment with the blood thinner heparin). In essence, a HIT patient develops an allergy to heparin transforming the drug into a clotting agent; individuals undergoing cardiac and major orthopedic surgeries are especially vulnerable. The quick and accurate assessment of the patients HIT-antibody status, provided by the Company's PIFA Heparin/PF4 and the newly launched PIFA PLUSS PF4 rapid assays, is a key factor in a physician's ability to rule-out or diagnose the condition.
The characteristics of the Territory's 1.3 billion citizen population are showing trends toward an increase in health problems such as heart disease, diabetes, and cancer common in developed countries with an aging population. With this in mind, the Territory's aggregate IVD market has been estimated to exceed $2 billion with an annual growth rate of approximately 25%. With heparin being a cost-effective, anti-coagulant mainstay, especially in cardiac surgery, PIFA's entrance into Asia's largest market has already been received positively by NovoTek's customer base through their pre-launch market research programs, as alternative, rapid HIT screening tests are in-demand, yet largely absent from the clinical laboratory marketplace.
The Agreement spans a 9-year period with accelerated-growth, minimum purchase requirements established over the initial term. Within the first 3 years, minimum ABI revenues attributed to the NovoTek relationship will exceed $1M, then in year 4-5, a $4.8M product purchase requirement takes effect. By year 6-7, an $11.5M minimum has been established and increases in year 8-9 to a minimum revenue of $15.8M. The Agreement represents a $33.2M minimum contribution to ABI's revenues over the initial term.
Thomas A. Nicolette, Chief Executive of ABI commented,
"We have been exploring distribution opportunities in China for our first-in-class HIT screening tests and after careful consideration, partnering with NovoTek's well-established sales and marketing team is the right fit for ABI. NovoTek's knowledge of the Territory's aggregate healthcare market and their turn-key and professional approach to product commercialization will provide the Company with the selling and technical support structure required for the successful introduction and rapid growth of the PIFA HIT-screening franchise in Asia's largest IVD market. The Agreement has been framed to facilitate an initial ramp up period for NovoTek to conduct local clinical trials that support market approvals from the State Food & Drug Administration (SFDA), as well as an initial, regionalized selling campaign. Aggressive, growth-oriented, market penetration plans quickly follow to help ensure that the Company's minimum revenue expectations are met and ultimately exceeded."
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Antony Legge or Emma Earl
Daniel Stewart & Company plc (Nomad and Broker)
Tel. +44 (0)20 7776 6550
About Akers Biosciences, Inc.
Akers Biosciences develops, manufactures, and supplies rapid, point-of-care screening and testing products designed to bring health status information, both rapidly and directly, to the consumer or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of proprietary platform technologies. The Company's state-of-the-art rapid diagnostic assays can be performed virtually anywhere, in minutes, since time is always of essence. ABI is aligned with high volume medical product distributors to help facilitate the Company's growth into a major, worldwide competitor in the field of rapid diagnostics. Additional information on the Company and its products can be found at www.akersbiosciences.com
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Excellent teamwork and internal communication with personnel bearing expertise from R&D to marketing.
Marketing activities are well guided by market data analysis from multiple databases.
Better patient care is always NovoTek's major focus and intention.