Pressure BioSciences (PBIO) Achieves Record Revenue on Road to Profitability
November 21, 2016 1:20 pm ET
Pressure BioSciences Inc. (OTCQB: PBIO) has made significant progress in launching its new Barocycler 2320EXTREME – the first overhaul of its flagship PCT technology in several years – and achieved record product and service revenue during the third quarter and for the first nine months of the 2016 fiscal year. With a market capitalization of under $9 million, small- and micro-cap investors interested in the biotech industry may want to take a closer look at this emerging company.
In this article, we will take a closer look at the company’s third quarter and fiscal year-to-date financial results and what investors can expect to see during the fourth quarter and in 2017.
Record Revenue & Moving Towards Profitability
Pressure BioSciences recorded record product and service revenue that increased 4% to $500,949 during the third quarter driven by a 13% increase in instrument sales. At the same time, PBIO also reported product and services revenue for the first nine months of FY 2016 at $1,429,487, an increase of 22% over the same period in FY 2015. While grant revenue fell during both the third quarter and year-to-date periods in 2016 vs. 2015, volatility in these funding sources is not uncommon and management expects grant revenue to pick up during the fourth quarter and continue to increase in 2017. Operating losses also narrowed by 34.6% to $451,807 during the third quarter 2016, which brought operations losses down 2.8% to $2,558,848 for the nine-month ended September 30 2016, as the company marches towards profitability.
These financial results follow several other milestones that the company has completed over the past few quarters, including its co-marketing agreement with SCIEX (a leading provider of analytical instrumentation to the life science industry), the elimination of nearly $3 million in floorless debt, the release of the company’s next-generation instrument system - the Barocycler 2320EXTREME, the closing of the sale of $610,000 of its common stock in a PIPE transaction, and the opening of a $2 million, unsecured line of credit under very reasonable terms for PBI’s shareholders.
The company has installed over 250 of its PCT systems in approximately 160 sites worldwide including nine of its new Barocycler 2320EXTREME units. Through its partnership with SCIEX, the company and SCIEX launched the PCT-SWATH technology that incorporates PBI’s PCT platform with SCIEX’s mass spectrometry system. As evidence of the early acceptance of this new co-marketing initiative, The Children’s Medical Research Institute (CMRI) – part of the Cancer Moonshot initiative – has chosen to use PCT-SWATH in its ProCan cancer research program, in which it expects to test at least 70,000 tumor samples.
Pressure Bio has demonstrated the ability to set goals and achieve them, so it is interesting to note the company's goals for the next few quarters. Pressure Bio intends to continue narrowing losses while they allocate capital and resources (from the recent above-market financing and its new line-of-credit) to significantly expand sales and marketing efforts. The company expects to further grow its relationship with SCIEX and realize the fiscal benefits of the foundation that has been laid. As a result of this direction, the company feels it is on a solid path to profitability.
Barocycler 2320EXTREME Gains Traction
Pressure BioSciences’ Barocycler 2320EXTREME – the latest in its line of PCT technologies – is a significant upgrade that has been in development for more than a year and a half. After incorporating the advice of key opinion leaders, the new technology represents the first major change to its PCT technology in many years. This new, next-generation system is capable of processing more samples at a lower cost, under better-controlled conditions, with the real potential of extracting more proteins from each cell. More proteins offers the potential for more discoveries…which then potentially means more cures, vaccines, and preventive strategies.
The company announced that it completed the build of four Barocycler 2320EXTREME instrument systems during the third quarter of 2016 through its ISO-certified contract manufacturer. Customers in Germany and Japan have already purchased these units, while at the end of the second quarter of 2016, the Children’s Medical Research Institute (CMRI) purchased the first three commercially available units for use in their cancer research initiative.
The company continues to progress toward securing a CE Mark for the next-generation Barocycler 2320EXTREME before the end of the year (which will open many potential sites in dozens of countries that require a CE Mark to sell in their country). At the same time, the company was invited to present at the Gala Opening of the ACRF International Centre for the Proteome of Human Cancer – or ProCan – located in the newly renovated laboratory facilities at CMRI near Sydney, Australia, creating an opportunity to reach new potential customers.
Pressure BioSciences Inc. (OTCQB: PBIO) represents a unique investment opportunity for biotech investors willing to take a risk on a smaller company. With a high-profile partnership with SCIEX (a leader in mass spectrometry), a “cleaner balance sheet”, sales-focused hires on the way, and access to several million dollars in funds, the company is well positioned to capitalize on the launch of its new Barocycler 2320EXTREME. Shipments have already begun and the adoption of the technology should continue to accelerate over the coming quarters.
For more information, visit the company’s website at www.pressurebiosciences.com.