How Pressure BioSciences can alter the billion-dollar biological study sample preparation market
Proteins are the fundamental building blocks of life, carrying secrets that can transform the medical landscape as we know it, unearthing cures for life-threatening diseases.
However, conventional methodologies for breaking open cells that contain proteins have generally produced mixed results. There are no solid ways to isolate proteins with great efficiency.
But what if somebody could specifically pinpoint which protein to extract and undertake the same with the simplest of devices?
Let's explore this fascinating area of modern research, where a relatively unknown entity is making bold strides.
And at the core of PBIO's pressure cycling technology (PCT) is absolute simplicity - everything in nature can be skillfully controlled with pressure.
We know it gets harder to apply pressure as the target becomes smaller. The $6 billion biological sample preparation market serving 500,000 scientists has hitherto only employed blenders or freeze-thaw cycles to accomplish this task.
Now, laboratories can streamline pressure application; thanks to PCT, a patented, enabling technology platform that uses hydrostatic pressure to pop out proteins.
By controlling and applying vast amounts of pressure you can rupture cells and tissues from human, animal, plant, and microbial sources and isolate the protein lying hidden.
PCT-enhanced systems (instruments and consumables) can address the problems inherent to biological sample preparation.
Sample preparation is a crucial laboratory step performed by scientists working globally in biological life sciences research - around 80K labs are involved in this work.
Now if PBIO were to install two systems each in only 10% of 80,000 labs, it would imply over 50x growth - truly extraordinary.
In just a few short years, Pressure Biosciences has installed nearly 300 PCT Systems in over 150 leading academic, government, biotech, and pharma laboratories worldwide.
The company also boasts of zero competition in using PCT for sample preparation; conventional systems are outdated against PCT technology. A band of highly talented individuals, with degrees and working experience from Yale, Harvard and MIT, are the brains behind this enterprise (currently boasting of 24 patents related to PCT).
On January 12, 2016, SCIEX, a leader in life science analytical technologies, announced an exclusive co-marketing pact with Pressure Biosciences, scheduled to head for a Nasdaq listing (NYSEARCA:IPO) soon.
It could also foster a complete solution for achieving improved reproducibility of protein extraction from challenging samples like tumors.
Experts suggest that Merck (NYSE: MRK), Roche (OTC: OTCQX:RHHBY) and AstraZeneca (NYSE: AZN) are among the Big Pharma firms that could boost revenues through the expansion of cancer therapies, by using simple yet powerful technologies like PCT. This could prove to be a major push for PBIO's earnings.
Total revenues for Q216 was pegged at $0.51 million (back-to-back $500,000 sales quarters) compared to $0.41 million y/y, clocking 24% growth.
And to think it's come this far with only nine full-time employees and one person in sales. The company has disclosed that it expects to grow the sales and marketing team by at least four new hires before the end of 2016.
Products' and services' total revenues for 2016 could exceed the $2 million mark. The company's also cleaned up its balance sheet, removing its toxic convertible variable debt, eliminating the threat of unwanted shareholder dilution.
You could say the PBIO story is akin Qiagen's (NASDAQ: QGEN) meteoric rise, from just a few years ago. Qiagen started out as a provider of sample and assay technologies, and today generates $1.28 billion in sales with an adjusted profit of nearly $250 million annually.
The writing's on the wall - Pressure Biosciences' PCT platform is pioneering tech that could transform healthcare - making this modest $12.7 million market cap company, a potential takeover target. Clearly, there's no stopping PBIO's rapid surge.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.