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Friday, 19 April 2013
Pressure BioSciences 2013 revenue expected to grow 37%, says AMI Research
Pressure BioSciences (OTCQB:PBIO), a life sciences firm that develops pressure cycling technology (PCT), is expected to increase its revenue 37 percent to $1.6 million in 2013, driven by the launch of new products, according to AMI Research.
The research firm said it predicts the South Easton, Massachusetts-based company's net loss to drop to 16 cents a share in 2013, from an estimated 38 cents in 2012.
AMI Research said Pressure BioSciences may launch new products, including its FFPE system in the second half of this year, and the rollout of its PCT-based HT and Xstream instruments in 2014.
"The new offerings will enhance Pressure BioSciences' solid portfolio of products and aid in the increased acceptance and recognition of PCT in the medical community," AMI analyst Peter J. D'Agostino wrote in an emailed note received on Thursday.
Earlier this month, the company said it plans to expand collaboration with key forensic groups to speed up the launch of a PCT-based rape kit processing system. D'Agostino said that management has indicated that company's PCT-based method could be commercially available during 2014.
Pressure BioSciences has developed a new procedure for the selective extraction of male DNA from mixtures of male and female cells. This may significantly increase the throughput of samples processed, which in turn could decrease the number of unprocessed rape kits, thus reducing the backlog of kits sitting on shelves nationwide.
There are 400,000 unprocessed rape kits awaiting examination and an estimated 180,000 new sexual assault cases annually throughout the United States.
PCT is a patented technology platform with multiple applications in the estimated $6 billion life sciences sample preparation market. The technology uses cycles of hydrostatic pressure between ambient and ultra-high levels to control bio-molecular interactions.
New York-based AMI Research expects Pressure BioSciences' 2012 revenue to grow 22 percent to $1.2 million, as the company pushed ahead with distribution PCT outreach that included an increase in international sales and distribution coverage to over 20 countries.
The research firm also cited additional distribution partners, such as Cole-Parmer, a unit of Thermo Fisher Scientific, Inc. (NYSE:TMO) which is now distributing Pressure's higher margin PBI Shredder SG3 System.
Pressure's shares jumped as much as 11.3 percent to 34 cents on Thursday, stretching this year's gains to approximately 88 percent. The company has a market value of $4 million.
Pressure BioSciences, however, is projected to post a 46.6 percent drop in revenue to $0.18 million in the fourth quarter of last year, when the company reports its 2012 results next week, D'Agostino wrote. The company was initially scheduled to report earnings on April 15.
The company's 2012 net loss is estimated to drop to 38 cents a share, from a net loss of 77 cents a share in 2011, helped by continued control of expenses and an increase in gross profit, D'Agostino wrote.
From AMI Research's perspective, Pressure BioSciences' biggest risk is its limited cash position. "Management has demonstrated the ability to raise capital on an “as needed” basis through private placement offerings, generally less than $2 million."
The research firm said it expects the company to be profitable in 2014 as it increases its market share. The company "is poised for substantial growth with the aggressive commercialization and increased distributor agreements, of its Barocycler product portfolio, new offerings in its pipeline and promising new markets for its existing technology."
AMI Research reiterated its "speculative buy" rating on the stock and maintained the target price at $1.00 a share.