Akers Biosciences gets boost from new French regulation

Akers Biosciences was rewarded with a 11.3 per cent jump in its share price as the company announced a new product launch into the French market.

Akers Biosciences was rewarded with a 11.3 per cent jump in its share price as the company announced a new product launch into the French market.

The launch of disposable breath alcohol analysis tools is timely, as it coincides with a new French law coming into effect as of July 2012 citing that every driver of a motorised vehicle must carry at least one unused disposable breathalyser kit.

The device from Akers, a provider of rapid diagnostic screening and testing products, has been approved by the French national reference laboratory, and further approval is expected this week from NF Mark.

This will enable the product to be marketed and sold to consumers in and around France, as drivers must now comply with the new regulations. Prior to Aker's certification, there were only three disposable breathalyser brands that carried the all-important NF Mark.

Akers has secured an exclusive, multiyear breathalyser distribution and supply agreement with Chubeworkx, which includes a $1.0m licensing fee. 3.5m breath alcohol detectors have already been ordered, to the value $1.05m, andfurther orders are expected as product demand is generated.

Akers warned, on January 6th, that full-year revenues would be "significantly below expectations" due to delays to a large order to supply breath tubes to a US-based healthcare group.

Chief executive officer Thomas Nicolette said he is hopeful the revenues from the French launch will support further growth for the company: "Having streamlined our manufacturing processes in 2012, the company is ready to deliver product to Chubeworkx on a schedule that will help meet French and EU market demand."

JF

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