Pressure BioSciences (PBIO) Showing Significant Potential for Continued Growth
PHOENIX, AZ / ACCESSWIRE / July 30, 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.
By: Callen Smith
SOURCE: Pressure BioSciences
ReleaseID: 430942