AMI Research says Pressure BioSciences "poised for growth", starts coverage with "buy" rating

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."
Pressure BioSciences is a life science, medical device company that develops and commercializes pressure cycling technology-based  instruments and consumables.
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 well.
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 uses.
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.