Akers BreathScan OxiCheck, KetoChek Products Gain Traction - Analyst Blog

Akers Biosciences Inc.’s AKER recently launched breath tests – BreathScan OxiCheck and KetoChek – gained significant traction within a very short span of time. The company recently provided an update on the products which were launched in May 2015.

The devices, launched along with the Bluetooth-enabled reading device BreathScan Lync, syncs with a mobile app. Meanwhile, Akers has entered into collaboration with software developer FirstApp to build user-friendly mobile app for Apple’s AAPL iOS as well as Google’s GOOGL Android.

Both the diagnostics devices help users to monitor trends in their metabolic processes. The addition of mobile app will further help in gathering data to understand lifestyle changes. OxiCheck helps in rapidly determining levels of oxidative stress (free radicals), while KetoChek allows fast determination of the optimum weight-loss stage called ketosis.

Apart from FirstApp, Akers has also entered into strategic partnerships with several companies including SPRIM – an international marketing consulting firm – in order to commercialize these products. The company expects to start shipping these products in the third quarter of 2015.

Apart from these products, Aker is focused on bringing new, highly disruptive rapid testing solutions in the market for conditions like chlamydia and diabetic ketoacidosis. The company is developing breath tests for lung cancer, asthma and chronic obstructive pulmonary disease. Additionally, it is developing a breath test to help diabetics evaluate their ketone levels without having to provide blood or urine samples.

On the cardiovascular diseases front, Akers is developing a rapid blood test for heart attacks. In infectious diseases, among other tests, an on-the-spot finger stick blood test for chlamydia (most prevalent among sexually transmitted diseases) is in the cards.

We are impressed with Akers’ innovative product pipeline. The company plans to commercialize rapid tests for chlamydia, malaria and dengue fever in 2015, which should serve as key growth catalysts particularly in the Asia-Pacific region. Alongside, Akers is also looking to help its distribution partners boost sales internationally for different tests, particularly in China.

The company’s efforts to ramp up sales of PIFA Heparin/PF4 in the U.S. and overseas through new distribution partnerships are also encouraging. However, the unimpressive first-quarter results keep us on the sidelines at the moment.

A stock that warrants a look in the medical sector is Bio-Rad Laboratories BIO with a Zacks Rank #1 (Strong Buy).

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