Akers Biosciences profits hit over antigen difficulties

Akers Biosciences' losses burgeoned as second-quarter revenues were cut in half after softer sales of its flagship Heparin rapid assay products had offset a stronger showing in its breathalyser unit.

Revenues tumbled 51% year-on-year to $526,601 in the three months leading to 30 June as Akers continued to experience difficulties in extracting the antigen used to produce these products, resulting in production falling short of target levels.

For the half, revenues crashed 95% to $1.74m at the same time as profit margins contracted all the way down to 28% to the 68% witnessed a year earlier. On the upside, sales from breathalyser product sales using MPC Biosensor technology increased by 53% to $106,680, driven by sales of Metron, a disposable ketones breath test, and BreathScan Alcohol tests.

All in all, losses widened 81% in the six months ended 30 June to $3.92m.

Cash and equivalents increased 60% to $8.75m, mostly made up of marketable securities.

John Gormally, Akers' chief executive, said, "Despite the manufacturing challenges associated with lower antigen yields experienced in the production of our core PIFA Heparin/PF4 Rapid Assay products during the quarter, demand and interest in these tests remains robust."

"The company's relationship-building initiatives with our partners is beginning to deliver a measurable increase in product trials and adoptions. The antigen yield levels are improving in the current quarter and backorders are being filled," he added.

As of 0950 BST, Akers shares had slumped 11% to 19p.