Pressure BioSciences posts record 2Q product and services revenue, lowers operating expenses

Pressure BioSciences Inc (OTCQB:PBIO) posted second-quarter results Wednesday that marked a tenth consecutive quarterly jump in products and services revenue, thanks to booming sales of the company’s lab instruments which utilize pressure to control bio-molecular interactions. Significantly, the company also decreased operating expenses by 24% through savings in advertising and PR costs.

For the quarter ended June 2018, the South Easton, Massachusetts-based company reported an 18% jump in total revenue to US$638,800 compared to US$540,400 for the same period in 2017.

This increase was driven by a double-digit growth in products and services revenue to US$618,400 for the quarter compared to US$480,400 a year ago. Sales of instruments also jumped 14% to US$397,000 on a year-over-year basis. During the quarter, Pressure BioSciences also secured a US$318,000 contract from Ohio State University for the development of the company’s high-pressure Ultra Shear Technology.

“Quarterly gross profit margins increased by double digits year-over-year. During the quarter, operating loss decreased by US$283,400 (24%), as our focus on reducing expenditures in investor and public relations, advertising, and non-essential corporate services began to pay dividends. Importantly, while we were posting revenue increases and operating expense decreases, we were also successful in completing a critical objective of converting US$13.6mln of debt into equity,” said Pressure BioSciences CFO Joseph L Damasio.

BIG PICTURE: Zacks upbeat on Pressure BioSciences’ growth potential; targets US$10 a share

Shares of Pressure BioSciences rose 1.3% to US$3.95 Wednesday morning. The company is a leader in high-pressure-based technologies, platforms and services to the life-sciences market worldwide since 2007.

The company continues to strengthen its balance sheet by converting a significant amount of debt into equity and with shrinking debt, and it plans to uplist to a national exchange before the end of the year.

“Pressure BioSciences core Barocycler instrument and consumables business, based on our patented pressure cycling technology platform, also experienced solid quarterly growth. On a year-over-year comparison, quarterly sales of instruments, sample preparation accessories, and consumables increased 14%, 20%, and 22% respectively,” said Damasio.

Pressure BioSciences develops pressure cycling technology (PCT) solutions and hundreds of labs utilize the company’s pressure-based systems to extract proteins carefully from cells and separate lipids, DNA, RNA and smart molecules from biological samples.

The company also holds two patents for Ultra Sheer Technology, which applies high-pressure levels greater than 20,000 pounds per square inch. The technology allows companies to extend the life of milk, and healthier drinks and juices, by reducing heat exposure in the preservation process through a combined application of elevated pressure and controlled times and temperatures.

READ: Pressure BioSciences developing breakthrough processing method for shelf-stable milk, dairy products

“We recently announced an agreement with Ohio State University to develop an innovative manufacturing technology for the extended preservation of high-quality milk and dairy products at room temperature without using chemical additives. This technology is based on our patented Ultra Shear Technology platform,” said CEO Richard T. Schumacher.

Pressure BioScience’s Pre-EMT platform – which uses high pressure to help drug companies develop protein-based therapeutics – is being contracted out to an international biopharma company that intends to use it to improve the quality of a key protein drug. The platform is one of the assets Pressure Biosciences acquired as part of its acquisition of all the assets of BaroFold Inc last December.

“During the second quarter, we were delighted to announce the close of our first contract to evaluate our recently acquired PreEMT technology platform’s ability to enhance the manufacturing process and to improve the quality of a biotherapeutic protein drug candidate,” said Schumacher.

The Harvard Medical School-trained serial entrepreneur said the company now had a “diverse patent estate” covering all three of its pressure-based platform technologies.

“In addition to continued increases in revenue from the sale of PCT-related products, we have now begun to generate solid revenue from our PreEMT platform. In addition, our UST platform will receive US$318,000 from an awarded USDA grant (thru Ohio State) to develop first-in-kind laboratory-bench and manufacturing-scale UST instruments,” said Schumacher.

“We believe these instruments, with their expected ability to make highly stable nanoemulsions, will forge multiple, potentially lucrative pathways into engagements in multiple industries, including food, pharmaceuticals, nutraceuticals, cosmetics, and more,” added Schumacher. “Consequently, we believe that the markets our patented, pressure-based technology platforms serve have now expanded to include many additional multi-billion-dollar areas, and that our recent developments have positioned us well to take advantage of these exciting and lucrative opportunities.”

Operating loss for the second quarter decreased 24% to US$920,900 compared to US$1.2mln for the same period a year ago. However, loss per share was US$9.20 for the quarter compared to a loss of US$0.54 a year ago due to the conversion of debt and distribution of related dividends.

The move to pay down debt and bolster revenue puts the company’s finances are on more solid ground, Schumacher said.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors