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Monday, 26 November 2012
Pressure BioSciences partners with UK-based Constant Systems to expand international reach
Pressure BioSciences (OTCQB:PBIO) has inked a two-way strategic marketing, selling and distribution agreement with UK-based biomedical product provider Constant Systems, with the deal to expand Pressure's international reach into 12 additional countries.
The life sciences company's pressure cycling technology (PCT) platform uses rapid and repeating cycles of hydrostatic pressure at controlled temperatures to extract cell components in the preparation of a biological sample - such as DNA and proteins from humans, animals and plants - for further study.
Its PCT products can be used for mass spectrometry, biomarker discovery, bio-therapeutics, vaccine development, forensics, and counter-bioterror applications, among other applications.
Under the agreement, US-based Pressure BioSciences now has non-exclusive rights to market, sell and distribute Constant Systems' high pressure cell disruption equipment and consumables, which are used particularly for the extraction of proteins, in the US, Canada and Mexico.
Meanwhile, Constant gets the rights to market, sell, and distribute Pressure BioSciences' patented PCT-based instruments and consumables in England, Scotland, Wales, Ireland, Spain, Portugal, Italy, Norway, Sweden, Finland, Denmark, and Singapore.
Constant Systems, which has almost 900 of its own machines installed in around 40 countries globally, currently has strong sales and distribution channels in all 12 of these countries, while Pressure BioSciences notes it has none. The agreement between the two parties is in effect until December 31, 2013, with the ability to extend.
Pressure's president and CEO, Richard Schumacher, tells Proactiveinvestors that Constant Systems' pressure-based cell disruption systems are needed "by many of the same companies and scientists in North America that use or need PCT."
"The two product lines complement each other exceedingly well. While both the CS and PBI technologies are based on high pressure, each product line has fundamental scientific capabilities that the other does not have," he adds in a statement Monday.
He further explains that Pressure BioSciences' PCT platform uses certain patented pressure mechanisms to achieve small-scale, molecular level effects. Constant Systems' technology, on the other hand, uses different, proprietary pressure mechanisms for larger-scale, non-molecular level processing.
"In a number of routine laboratory applications, such as protein extraction, both effects can be critical to success. Therefore, for protein extraction and a number of other important scientific applications, we believe laboratories will benefit by using the CS and PBI products, either separately or together.
"This is a wonderful synergy of two well-respected, growing, and complementary product lines," Schumacher concludes.
The companies said they expect to co-market their products through shared booths at trade shows, via joint email campaigns, combined advertisements and webcasts, and other means of gaining visibility.
The parties have also started discussions on the possibility of expanding the agreement to include cooperative research, development, and manufacturing in the near future.
CEO of UK-based Constant Systems, Richard Mallabar, adds: "To date, throughout our sales network we have successfully installed close to 900 of our cell disruption units into more than 40 countries worldwide.
"To help us continue this trend of successful selling, and to increase our market share in North America, we have partnered with PBI. Their reputation, experience, and expertise in high pressure, market knowledge, installed base of over 200 PCT instruments in approximately 150 N. American labs, and their U.S. location, gives us confidence that together we will be highly successful in placing multiple cell disruption instruments in the U.S., Canada, and Mexico.”
Indeed, last week, Pressure BioSciences announced its quarterly results, posting a 40 per cent increase in revenues for its third quarter, as revenue from PCT products and services was $297,867 in the latest period, up 37 per cent year-over-year.
The company said it installed eight PCT sample preparation systems in the latest period, while sales of PCT-based consumables generated sales of around $28,000 - a rise of 33 per cent.
Earlier this month, two separate research groups presented data at a recent scientific world congress showing that the inclusion of the company's PCT platform into their sample preparation processes resulted in a "marked improvement in the quality and/or efficiency of test results."
And in a recent article from influential financial markets blog Seeking Alpha, contributor Vineet Dutta wrote about the fact that biotech services giant Thermo Fisher's (NYSE:TMO) unit Cole-Parmer recently agreed to carry Pressure BioSciences' PBI Shredder SG3 System.
"This could end up being a significant opportunity for PBIO because Cole-Parmer happens to be one of the world's largest and most recognized distributors of lab equipment and supplies," Dutta wrote in the online article.
Schumacher has previously said that a number of important goals remain for this year - including eliminating short-term investor debt, securing at least one additional strategic distribution partner and continuing with revenue increases and cost reductions. At least one of these goals has now been reached.
In fact, Pressure BioSciences has steadily progressed: in the first nine months of the year, the company generated revenue of more than $1.0 million - a level not reached over all four quarters of 2011.
Commenting on the strategic partnership announed today, the company's VP of sales and marketing, Dr. Nate Lawrence, says: “Finally, we believe that one of the earliest, most measurable results of this strategic partnership will be significantly increased revenue for both companies in 2013, and beyond.”
Constant Systems is part of the Score Group plc, an international engineering business based in Peterhead, Scotland that has annual sales of more than $130 million.