PBIO Signs Distribution Agreement For Germany and Switzerland
Early today (Monday morning), Pressure BioSciences, Inc. (PBIO) announced that it has entered into a distribution agreement with Germany-based life sciences company IUL Instruments GmbH. Under the terms of the agreement, IUL will have the exclusive right to market and sell PBIO's Pressure Cycling Technology (PCT) sample preparation instruments (Barocycler NEP2320 and NEP3229) and consumables in Germany and Switzerland. In addition, IUL will have the non-exclusive right to market and sell PBIO's recently released, patent-pending, mechanical homogenization device, the Shredder SG3, and its associated consumables, in the same two countries.
IUL Instruments GmbH, founded in 1991, is a leading, well-established, and well-respected provider of scientific products with strong customer relationships in pharmaceutical, academic, and other life sciences markets. Based in Germany, IUL handles sales and service with a staff of more than thirty, including product specialists in Germany, Austria, and Switzerland. IUL specializes in microbiology, cell biology, and biotechnology applications, and offers high-level support of specialized, complex, and exclusive technologies, including sample preparation, with a highly-educated and experienced marketing and sales team, and with rapid, customer-oriented, and high quality service support. IUL also markets, sells, and supports equipment for microbiological food control, analytical devices, and process technology for fermentation, cell culture, and life cell imaging.
What Can Investors Expect from the Distribution Agreement?
In fiscal year 2011, PBIO has made great progress in terms of operations, business development and financing.
· Over a dozen presentations have been made at scientific meetings, discussing the advantages of PCT over current sample prep methods.
· PBIO has received a grant from the NIH for $161K to help develop a new method for the processing of cancer and other samples.
· PBIO has received a grant from the Dept of Defense for $750K to help develop a new PCT-based instrument for high throughput processing, using the 96-well template that is universal in labs worldwide.
· PBIO has filed and been granted a three year, S-3 shelf registration for up to $15 million, so that the Company will have access to funds, if needed.
· The Company’s revenue in Q3 2011 was 50% greater than revenue in either Q1 or Q2 2011. Its PCT products revenue in Q3 was the highest in a year.
The Company has turned the corner. We think PBIO is poised to grow dramatically in fiscal 2012.
IUL understands well the German and Swiss life sciences market, including the need for high quality sample preparation products. Due to its uniqueness and superiority, PBIO’s PCT system will fill a very important yet unmet need in IUL’s customer base.
We expect sales from Germany and Switzerland will immediately contribute to PBIO’s total revenue from 1Q2012.
PBIO is an emerging leader in the sample preparation market with its unique and powerful PCT platform technology. The Company’s PCT technology has competitive advantages over existing technologies in the sample preparation market. As we pointed out in our previous research reports, PBIO is still in its early stage of commercialization and PCT is increasingly gaining recognition by research labs worldwide.
Things are better at PBIO now than they have been in over a year, yet the stock is still down to a third of its price a year ago. We think the Company’s stocks are undervalued. We have a price target of $5 per share.