REDONDO BEACH, CA / ACCESSWIRE / December 2, 2015 / Pressure BioSciences Inc. (OTCQB: PBIO) is a developer of life science tools (e.g., instruments and consumables) for researchers around the world. By gently squeezing cells rather than mechanically breaking them open with "one-size-fits-all" tools, the company's innovative PCT platform enables scientists to quickly release and isolate the proteins on which they need to conduct research, but without damaging them. These proteins can then be put into mass spectrometry and other equipment to potentially make valuable, even life-changing scientific discoveries.
In this article, we will take a look at three reasons that investors may want to take a closer look at the company as a potential investment opportunity in the life sciences industry.
Unique Technology in a Large End Market
Pressure BioSciences' Pressure Cycling Technology ("PCT") represents a breakthrough in the way that basic research is conducted. Rather than mechanically breaking a cell apart with a proverbial "pick and hammer," the PCT plattform lets scientists gently squeeze out the proteins, lipids, or other cellular components they require, greatly reducing the possibility of damaging the cell's contents prior to studying them. This enables research sceintists to obtain a greater amount of higher quality biomolecules (e.g., proteins, lipids, DNA) or perhaps even biomolecules they had not seen before.
In particular, the PCT platform cycles pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals to rapidly and repeatedly control the breakage of cells, allowing for the release of biomolecules from within the cell. The customizability of the pressure (from about 1,000 psi to nearly 100,000 psi, at user defined increments) and other elements (e.g., temperature) is important, because every cell type (e.g., normal, cancer, animal, plant, lung, liver, etc.) has a different pressure point. For instance, an HIV cell may only require 17,000 psi to be broken, while other cells may have much higher pressure points (or even lower).
With over 500,000 researchers across 80,000 laboratories worldwide, the innovative PCT platform is targeting an estimated $6 billion industry. This razor-razorblade business model -- driven by consumables -- could generate attractive high-margin recurring revenue within the market. While these consumables only accounted for about 6% of revenue during the third quarter, the revenue mix is likely to shift greatly upwards as the company's products become more commonplace in the market.
Growing Organic Revenue
Pressure BioSciences has grown its quarterly revenue from an average of less than $350,000 a year ago to nearly $600,000 during the third quarter of 2015, surpassing management's guidance of $500,000 by a wide margin. With only a single full-time sales person on staff, the vast majority of these sales were generated through word of mouth. Scientists using the PCT platform publish papers and present their data at scientific meetings mentioning the techniques used, and colleagues inquire to learn more about it.
A growing number of customers have realized the platform's unique ability to better prepare samples across a wide array of industries, with its top five customers accounting for far less than half of its product revenue. In the private sector, Merck & Co. (NYSE: MRK) and Amgen Inc. (NASDAQ: AMGN) are among its customers. In the public sector, the FDA, CDC, FBI, and U.S. Army use the platform to conduct research in various capacities. In the academic sector, Cedars-Sinai, UCLA, Florida International University, Stanford, and Harvard have all been customers.
Numerous Near-term Catalysts
Pressure BioSciences has numerous upcoming catalysts on the horizon that investors may want to consider given the potential of these events to boost its stock price. After executing on many of its goals set out for FY2015, management has big plans to transition itself from an over-the-counter stock with $3 million in variable-rate debt, little cash in the bank, and minimal ability to do active marketing and sales, to a nationally-listed stock that has no variable-rate debt, several million in operating funds, and numerous partnerships in 2016.
The company hopes to sign a co-marketing deal with one of the big six mass spectrometry companies by the end of the year, which would mark the completion of all of its milestones for FY 2015 that it set out to accomplish. Since sample preparation is a crucial laboratory step that comes just before mass spectrometry analysis in the research process, the co-marketing deal could be a natural fit and help the company expand beyond organic, word-of-mouth sales to drive revenue and its customer base significantly higher in 2016.
Next year, the company plans to up-list to the NASDAQ or the NYSE in order to expand its visibility and reach within the financial community. Many institutional investors are forbidden from investing in OTC-listed securities, which has severely limited the stock's liquidity. As founders and executives of many other NASDAQ-listed companies, the company's management team is keenly aware of how to solve the issue and truly build shareholder value moving forward.
Takeaway Points for Investors
There are many different opportunities in the crucial sample preparation and laboratory equipment space. Companies like Positive ID (OTC: PSID) sell all-in-one sample prep devices into specific end markets, while others like Fluidigm Corp. (NASDAQ: FLDM) focus on selling a wide range of assays, reagents, and integrated fluid circuits to the life science industry.
Pressure BioSciences is taking a different approach by reinventing the age-old way of breaking apart cells and extracting proteins and other biomolecules from cells by using pressure cycling technology. With a compelling value proposition for customers and strong organic growth, the company has already seen a lot of traction in the marketplace that it hopes to expand through distribution agreements with mass spec companies by the end of the year. That said, it is apparent that the investment community has not yet fully appreciated the recent successes and the bright future of this very exciting life sciences company.
Investors can learn more by visiting www.pressurebiosciences.com.
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Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release.Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx.
SOURCE: Emerging Growth LLC
