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Pressure BioSciences ramps up growth, with record 2014 product sales

Pressure BioSciences (OTCQB:PBIO) was upgraded Thursday by analysts at Zacks Research, which continues to be bullish on the life sciences company's shares after it reported record revenue for 2014, with expectations for continued sales growth in 2015 and beyond.

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SeeThruEquity has reiterated its ‘buy’ recommendation for Pressure BioSciences (OTCQB:PBIO) increasing its price target to $2.18 per share, which represents a potential upside of 560.6% from the recent price of $0.33.

Shares of the company, whose products are based on its pressure cycling technology (PCT), were trading at 0.34 cents on Thursday.

Ajay Tandon, SeeThruEquity’s CEO, downplayed the overall 2014 year-to-year revenue, noting that it is almost irrelevant given growth in PBIO’s core products and services as well as the completion of important product improvements that suggest 2015E revenue to reach US$2.5 million, 81.9 percent higher YoY:

"In light of the company's recent announcement that it has won a US$1 million NIH grant payable over 2015 and 2016. More important in our view, is the fact that the core business trends at PBIO showed improvement during the year. In fact, revenues from products and services increased by 29% from $1.05mn in 2013 to $1.35mn in 2014," said Tandon.

On April 1, PBIO reported total revenue for the fiscal year ending December 31, 2014 of US$1,374,744 compared to $1,503,288 for the same period in 2013, an 8.6% decrease due to grant revenue dropping from US$456,610 to US$24,594. But, it is important to note that products and services revenue of $1.35 million was 28 percent higher than the $1.05 million of the previous year.

Sales of consumables also increased 6 percent year-over-year to $167,380, but grant revenue decreased to $24,594 from $456,610 in 2013. Losses were steady year-over-year at 44 cents per share.

Apart from higher sales from consumables, SeeThruEquity’s price target increase is also based on the fact that on February 19, 2015 PBIO received a $1.02mn SBIR Phase II grant from the National Human Genome Research Institute of the NIH.

The grant is payable over two years, to support the development of a high pressure-based system for the preparation of samples for DNA analysis by next generation sequencing (NGS) methods, opening a large market and growth opportunity for the company.

PBIO maintains an ambitious guidance of achieving revenues of US$2mn during 2015 thanks also to the possibility of spinning off selected PCT applications into new, stand-alone businesses designed to generate a revenue stream for the company.

Earlier this year, PBIO also announced the launch of a new major sample preparation system for proteins known as PCT-HD, which is based on the company's PCT. The U.S.-based company said the PCT-HD system combines two of the company's existing products: the recently released patent-pending μPestle consumable, and the Barocycler NEP2320 instrument.

The technology duo allows for faster and higher quality homogenization, extraction and digestion of proteins, according to PBIO.

Earlier in April, PBIO was also upgraded by analysts at Zacks Research, who continue to be bullish on the life sciences company's shares after it reported record revenue for 2014, with expectations for continued sales growth in 2015 and beyond.

 

 

 

 

 

Quick facts: Pressure BioSciences, Inc.

Price: 2.56 USD

OTCQB:PBIO
Market: OTCQB
Market Cap: $6.14 m
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