by Callan Smith
Phoenix, AZ (UPTICK Newswire – July 30th 2015) – Months ago Uptick looked at Pressure BioSciences (OTCQB: PBIO), following the release of a Zacks Small-Cap report from April on the company and the award of over a million dollars in grant funding. In going over subsequent news from the company, Q1 earnings, and additional Zacks reports, it is clear that Zacks target goal of $2.50 per share is appropriate, along with the estimation that PBIO shares are highly undervalued. Much of this interest in the company is based on the continued progress that PBIO has made over this time on the development and commercialization of their patented and enabling Pressure Cycling Technology (PCT) platform.
During the past two months, PBIO announced that PCT-SWATH (a cutting-edge lab method that requires PCT as an integral part of the method) is being utilized to identify new protein biomarkers to more precisely classify prostate cancer. This is especially important because patients are typically classified into three groups: low-grade, intermediate-grade and high-grade, and the intermediate-grade category ends up including patients who progress on to high-grade, don’t show progression and are re-categorized as low-grade, or remain intermediate -grade. Dr. Nate Lawrence, Vice President of Marketing, and Sales for the company stated, “this should enable more precise classification, which should lead to better prognosis and treatment.” Prostate cancer is the second most common cancer and the second leading cause of cancer death in American men, per the American Cancer Society (ACS). It is estimated that there will be approximately 220,800 new cases of prostate cancer in 2015, with about 27,540 deaths. Based on current statistics one man in thirty eight will die of prostate cancer. Clearly, PBIO is poised to make an impact in that market, benefiting patients worldwide, while also benefitting stakeholders in the company.
PBIO also noted that their PCT-based sample preparation was being used for selective differential extraction of DNA recovered by cotton swabs, based on a study published in Analytical and Bioanalytical Chemistry, a leading peer-reviewed scientific journal. Mr. Richard T. Schumacher, President and CEO of the company stated, “Future commercialization of this novel, PCT-based method could potentially provide significant new business channels for PBI in important forensic applications, such as touch DNA and rape kit testing.”
Commercialization of the PCT-based method could provide new revenue streams for PBIO based on forensic needs. Estimates suggest there are hundreds of thousands of untested rape kits ready for processing and analysis, not taking into account new kits added to the list of kits needing testing yearly. Forensic uses of the PBIO PTC based method in labs across the US, performing thousands of tests routinely, could potentially account for significant revenue growth for the company, and help fix the un-acceptable backlog of untested rape kits.
Furthermore, PBIO’s PCT based sample preparation solutions have been internationally recognized in Biochimica et Biophysica Acta, wherein the authors provided insights into “possible solutions for biomarker discovery and validation in the field of diabetes research.” These solutions could aid in early discovery, progression, and pathway dysfunction that are vital in improving clinical outcomes. It is estimated that the number of people worldwide with diabetes could increase to a whopping 366 million by 2030.
PBIO’s PCT based solutions were also used in the identification of “multiple molecular pathways in COPD-associated lung cancer were presented at the recent American Society for Mass Spectrometry (“ASMS”) annual conference.” At the recent ASMS national meeting, PBIO showcased their high-pressure instruments and consumables to over 800 visitors, “about 10x more than any previous year,” according to Dr. Lawrence with PBIO. With the amount of potential exposure PBIO received at that event alone, along with the published studies, there is an expectation of strong continuing revenue growth for PBIO.
Beyond PBIO’s advances, there is the matter of funds raised through an initial tranche that are planned to increase the number of personnel in sales and marketing and retire a significant portion of variable priced convertible debt that was taken on during PBIO’s growth. In the March and May 2015 earnings calls, PBIO CFO Dick Thomley reported that revenue from the sale of PBI’s products and services increased 29% EACH of the past two years, from roughly $800,000 in 2012, to $1.1 million in 2013, to $1.375 million in 2014. The company also said it expects revenue to increase by even more than 30% in 2015.
See the full May 2015 transcript here: http://seekingalpha.com/article/3201046-pressure-biosciences-pbio-ceo-richard-schumacher-on-q1-2015-results-earnings-call-transcript?page=1
All of the above highlights why Zacks continues their bullish stance on PBIO noting record quarterly revenues and expected significant revenue growth. See the full report here: http://scr.zacks.com/files/May-21-2015_PBIO_Zeng_v001_g65t02.pdf
With PBIOs investment into their sales and marketing departments along with their removal of variable-priced convertible debt, Zacks target price of $2.50 for PBIO should come to fruition. Of course, investors need to do their own due diligence, as there are always risks. However, because of the excellent progress the company has recently made that has not yet been reflected in the company’s stock price, we believe that PBIO presents an opportunity that could lead to strong, perhaps even remarkable investment gains in the very near future.