One of the newest companies in our coverage universe, Pressure BioSciences, Inc. (PBIO-OTC), holds exciting new technologies for life science research—technologies that could help advance the work being done in tens of thousands of laboratories worldwide. The Company’s pressure cycling technology (PCT) platform, which is able to apply and release high levels of hydrostatic pressure in a safe and controlled manner, aids researchers and scientists by giving them the laboratory equipment needed to improve the processing of samples—which ultimately can lead to higher-quality research in critical fields like testing cancer therapies, creating new vaccines, and even faster and more accurate DNA analysis for things like processing rape kits. As an indication of the competitive advantage in research that Pressure BioSciences’ products can offer, to the Company’s knowledge, PCT has been shown to be the only technology able to completely kill anthrax while still leaving the sample in a testable state.
Having demonstrated the utility of its equipment through roughly 235 installations in 150 marquee laboratories around the world, the industry is starting to take notice of the small-cap Pressure BioSciences, and with good reason.
Revenue at Record Highs
On November 7, 2013, Pressure BioSciences reported all-time-high quarterly revenue of over $420,000 in the third quarter 2013. Representing a 7% increase in revenue year-over-year, it is particularly noteworthy that the Company’s revenue growth is coming primarily from increased product and services sales. While grant revenue is still a significant source of funding for the Company, product sales during the quarter increased 10% to nearly $330,000, driven in part by growth of consumables, which increased 84% to just over $50,000.
Single-use consumable products are an important element of Pressure BioSciences’ product line. These products include PULSE Tubes and MicroTubes to hold samples during processing as well as a variety of prepackaged sample preparation kits and reagents that provide additional specialized capabilities tailored to particular sample processing challenges. All of the consumables are designed to be used in conjunction with the Company’s laboratory instrument. Pressure BioSciences anticipates that these consumable products could eventually grow to become the leading revenue-generating item and profit center in its PCT products mix.
For the nine-month period year-to-date as of September 30, 2013, Pressure BioSciences reported revenues of approximately $1.15 million, a 12% increase over the same period in 2012. Again, revenue growth is being driven by product sales, which were up 9% year-over-year to $746,000 for the first nine months of 2013.
And it seems Pressure BioSciences is just getting started. As announced in a November 18th press release by the Company, product revenue for the first five weeks of the fourth quarter has already exceeded that of the entire fourth quarter last year.
A Pipeline of Innovation
Crystal Research CEO Jeff Kraws has said repeatedly that innovation is key for companies in the healthcare and life sciences arenas. Pressure BioSciences is exhibiting its capabilities in this area, with significant progress made in developing new laboratory instruments to meet the emerging needs of scientists and researchers. An example is the Company’s Barocycler HUB880 and Barocycler High-Throughput pressure cycling technology (PCT)-based systems—both of which are targeted for launch in the first half of 2014. Proof-of-principle has been established, and the Pressure BioSciences’ CEO Richard T. Schumacher calls its high-throughput PCT model specifically a “game-changer” for the Company.
While the current processing capabilities of its existing products have sales to small laboratories and individual scientists, an automation-ready, high-throughput system fulfills the needs of larger research and clinical diagnostics laboratories and companies. Pressure BioSciences believes that the Barocycler HT Multiwell has the potential to fuel growth and increase revenues for existing and new PCT-based applications and products, as well as to facilitate new strategic partnerships. The Company expects beta units to be built and tested by the first quarter 2014, with market-ready units to be available for sale as early as the second quarter 2014.
Pressure BioSciences’ ability to continue to grow, and to manage this growth effectively, will be an important factor in the Company’s performance going forward. To this end, Pressure BioSciences benefits from a strong executive management team experienced in technology development and the sample preparation markets that the Company is targeting, as well as a broad intellectual property portfolio of 24 issued patents and additional pending patents.
The Company is also implementing sales and marketing operations through relationships with Constant Systems and other distributors, building up a social media presence, and focusing on marketing presence in the life sciences arena with sales outreach to potential PCT users.
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