Independent equity research firm AMI Research Wednesday initiated coverage on Pressure BioSciences (NASDAQ:PBIO) with a "buy" rating and $5.22 price target.
In a research report, AMI's director of research Peter D'Agostino
said: "At this time, we urge investors to view PBIO as a revenue growth
story and as a buy and hold stock."
is a life science, medical device company that develops and
commercializes pressure cycling technology-based instruments and
The PCT platform technology instrumentation cycles pressure between
ambient and ultra-high levels (up to 35k psi) at controlled temperatures
to control the interactions of biomolecules. PBIO's technology is also
used for genomic, proteomic and small molecule sample preparation as
The applications of the company's PCT-based products are endless -
from the key $2 billion target market of mass spectrometry, an
analytical technique used to determine the characteristics of molecules,
to biomarker discovery, forensics and counter-bioterrorism, among other
Florida International University (FIU) was awarded in late January a
near $350,000 grant to improve rape case DNA testing using the company's
own PCT platform. The company's goal, with the help of the FIU grant,
is the continued development of a faster and more accurate method of
processing DNA evidence for rape prosecutions. With Pressure BioSciences' PCT System, there is no need to remove female cells prior to analysis.
The company's Barocycler product has even appeared in an episode of hit TV show "CSI:New York" in 2011.
In the report, AMI's D'Agostino said: "PBIO is poised for growth as
it begins an aggressive commercialization initiative in 2012."
D'Agostino said that this commercialization will be a highlight to
PBIOʼs story for the next couple of years and AMI expects that momentum
will be built.
"We are impressed with managementʼs plan to implement a restructured
sales force, significantly expand its distributor base and form
strategic agreements with larger partners, while still rolling out new
products in 2012 and 2013," D'Agostino said.
"As far we know, PBIO is the only company with PCT technology and available products."
AMI's D'Agostino was confident that as the company continues its
commercialization, it will gain significant medical acceptance,
allowing PBIO to grow market share.
For 2012, AMI projects product revenue growth of nearly 33 percent to
$1.0 million and expects total revenue to increase nearly 54 percent
to $1.5 million.
The independent research firm expects revenues to strengthen in the
second half of the year as PBIOʼs newly structured sales team begins to
gain traction and additional distributor agreements are signed and new
and recent products gain momentum.
In terms of future catalysts, D'Agostino sees aggressive product commercialization as PBIOʼs largest growth catalyst.
"A highlight to the PBIO story is its anticipated large-scale
commercialization effort. We expect the company to now be focused on
three areas in its commercialization effort; sales, distribution and
strategic partners," he said.
PBIO currently has distribution agreements in Japan and Korea and
recently partnered with a leading life sciences European distributor
for coverage in Germany and Switzerland. The company expects to
significantly increase the number of foreign distributors, which will be
essential for its anticipated growth.
A strong product pipeline will boost PBIOʼs commercialization
process, AMI said. PBIO closed an $800,000 private placement financing
earlier this month.
"PBIO has successfully launched new products and is gearing them for
mass commercialization. In 2012, PBIO is scheduled to launch its FFPE
system and in 2013 the company is expected to roll-out its PCT-based HT
and Xstream PCT instruments."
The new offerings will enhance PBIOʼs solid portfolio of products and
aid in the increased acceptance and recognition of PCT in the medical
community, AMI's D'Agostino added.