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Akers Biosciences (AKER): Preview for this Earnings Season

Akers Biosciences IncAKER is expected to report third-quarter 2015 earnings results on Nov 12. The company had posted dismal second-quarter results, wherein loss of 41 cents per share widened from a loss of 10 cents per share incurred in the year-ago quarter, largely because of declining revenues.

However, in the second quarter, sales of Particle ImmunoFiltration Assay (PIFA Heparin/PF4), the company's flagship rapid test, increased 67% to $0.5 million. Nonetheless, revenues deteriorated 28.5% on a year-over-year basis to $0.9 million, primarily attributed to the initial stocking order for Tri-Cholesterol "Check" tests which was accounted for in the second quarter of 2014, but was absent in the reported quarter.

Factors at Play

Akers expects to keep incurring losses in the near term owing to escalating operating expenses related to product development as well as clinical and regulatory activities. However, the company's efforts to ramp up sales of PIFA Heparin/PF4 in the U.S. and overseas through new distribution partnerships are encouraging.

Most recently, Akers' flagship PIFA Heparin/PF4 Rapid Assay was approved by China Food and Drug Administration (CFDA) for medical use throughout Mainland China. We believe that this is significantly positive for the company's growth in the country.

Moreover, Akers' newly expanded sales and marketing team is expected to improve visibility of the heparin allergy test in the U.S. The company also rolled out the Akers Wellness product line with two latest rapid breath tests for ketosis and oxidative stress.

During the third quarter, Akers launched METRON - its first disposable Breath Ketone test diagnostic product. The company also started selling METRON online through Amazon AMZN and its own portal.

The launch of METRON demonstrates Akers' growing focus on fortifying its hold in the lifestyle segment. We are particularly impressed with the company's innovative product pipeline that includes hassle-free rapid test solutions for lung cancer, asthma, chronic obstructive pulmonary disease, diabetes and cardiac arrest.

Meanwhile, Akers plans to commercialize rapid tests for chlamydia, which would serve as key growth catalysts, particularly in countries in the Asia-Pacific region.

Other Expected Releases

Apart from Akers, there are other players from the same space that are yet to come up with their earnings releases. Among these, Aquinox Pharmaceuticals AQXP and CoLucid Pharmaceuticals CLCD are slated to report on Nov 10 and 11, respectively. Aquinox sports a Zacks Rank #1 (Strong Buy), while CoLucid carries a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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