Laboratory instrumentation company Pressure BioSciences, Inc. (PBIO-OTC) announced this morning that it had entered into an exclusive, three-year distribution agreement with a Chinese distributor of analytical instruments and other equipment to China's biotech, pharma, agricultural, environmental, food safety, and commercial laboratory markets. Pressure BioSciences reports that the company, Powertech Technology Company Ltd., is a recognized distributor to the Chinese market, with a network of 18 distribution offices, a maintenance center, an applications laboratory, and multiple sub-dealers. The press release further stated that Powertech's current business partners aside from Pressure BioSciences include Dupont, GE Healthcare, Sartorius, Zeiss, and Agilent.
Following record products and services sales from Pressure BioSciences in the first half of 2014 (up 70% over the year-ago period), this new agreement may represent a considerable new opportunity for the company to continue its growth. Pressure BioSciences' vice president of marketing and sales, Dr. Nathan P. Lawrence, characterizes China as the largest single-country market for the company's pressure cycling technology (PCT) products outside of the U.S.
"We are thrilled to partner with a company whose reputation and capabilities are as strong as Powertech. Their customer base is large and widespread throughout China, and includes life science and commercial testing laboratories that we believe will want to use our PCT-based products in their proteomic, genomic, and lipidomic studies. Importantly, their customer base also includes agricultural, food safety, and environmental laboratories – the types of facilities we believe will make up the majority of the next wave of potential customers for our PCT-based products." --Dr. Lawrence
In discussing the agreement, Mr. Richard T. Schumacher, President and CEO of Pressure BioSciences, stated that "Powertech has agreed to very aggressive – but attainable - minimum sales quotas. Constant Systems, our distribution partner for most of the rest of the world (outside of the U.S.) has recently invested heavily into its marketing, sales, and customer support of the PCT product line. We believe that sales of our new Barozyme HT48 and HUB880 instrument systems, as well as our new micro-Pestle consumable, will begin in earnest in the first quarter of 2015."
As the company's recent revenue growth had very little to do with sales in China, this ramp-up through the new agreement with Powertech as well as ramp-up of marketing and sales for Pressure BioSciences' multiple new 2014 product releases, is anticipated to lead to continued product revenue increases through the second half of 2014 and into 2014, according to Mr. Schumacher.
For further details on Pressure BioSciences' products, business strategies, markets, and financial results, please consult Crystal Research Associates' most recent Quarterly Update on the company, published on September 29, 2014.