Thursday 15 November 2012

Pressure BioSciences posts 40% rise in Q3 revenues, narrows loss


Pressure BioSciences (OTCQB: PBIO) has posted a 40 per cent increase in revenues for its third quarter, reporting record sales of its pressure cycling technology (PCT) products. 
The life sciences company's 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.
For the three months that ended September 30, total revenue rose to $391,616 from $280,422 in the same period a year ago. 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, Pressure BioSciences said that 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."
The first study, presented by scientists from the FDA, reported that PCT was an important part of their approach to improve sample preparation and protein identification. The authors of the study said the approach allowed them to better identify and analyze events likely to control the biology of multipotent stromal cells - which offer potential for cell-based therapies for a wide number of diseases. 
Meanwhile, scientists from the Janssen team reported that PCT was "very effective in significantly reducing" the total time required to digest monoclonal proteins and to expedite their complete characterization. Monoclonal antibodies are used in diagnostics and therapeutics. 
In October, Pressure BioSciences also said that two research groups reported on the ability of the company's PCT platform to improve the detection of DNA in so-called "challenged" forensic samples.  The studies were presented by scientists from the Institute of Applied Genetics, University of North Texas Health Science Center in Fort Worth Texas, and from the Harris County Institute of Forensic Sciences in Houston Texas. 
For the third quarter, Pressure BioSciences reported a smaller operating loss in the period of $686,520 - a decline of 8 per cent - with a per share loss of 9 cents compared to a loss of 15 cents a year earlier. 
Expenses were lower, as after the exclusion of non-cash charges, operating cash burn for the latest third quarter was roughly $507,000 compared to $658,000 in the year-ago period. 
“In addition to our strong financial results, we reported a number of operational and technical achievements during the third quarter as well," said president and CEO, Richard T. Schumacher. 
"In addition, it was recently announced that Cole Parmer, one of the largest and best known distributors of laboratory equipment and consumables worldwide, has become a distributor of the PBI Shredder SG3 System.”
Indeed, 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. 
Cole-Parmer's catalogues land in the hands of "most if not all" of the people who run laboratories all over the world, the article said.  
"With Thermo Fisher's backing, Cole-Parmer's many decades of experience and hundreds of thousands of customers, and a new distribution platform, this deal has the potential of developing into a long and profitable relationship for PBIO as the relationship develops and Cole-Parmer adds more of PBIO's products to its catalogue."
Schumacher went on to say 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. 
"Most importantly, we need to improve our financial condition," Schumacher said. 
"Based on our accomplishments to date, we believe we will achieve success in these areas during the 2012 fourth quarter, and that this success, together with the achievements previously reported, will have a positive effect on the value of PBI for all of our shareholders.”
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. This increase was due to orders from new distributors, sales of new products, and a rise in grant billings. 
In the company's efforts to secure financing, it received around $600,000 in short-term loans from fiver investors during the third quarter, including two members of its board. 

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