Pressure Biosciences Inc (OTCMKTS:BIO) has seen momentum building behind its proprietary technology and it is primed for a successful fiscal 2017.
Revenues are on the rise and the group’s efforts to bring in new business is delivering.
The firm develops, markets, and sells proprietary laboratory instrumentation and associated consumables to the estimated $6bn sample preparation market.
The company got a major shot in the arm in December and now sees itself playing a key role in a new cancer research initiative in the United States, following the introduction of new legislation.
First quarter shows financial and operational success
Sales of products and services helped boost revenues in the first quarter. Total revenue came in at $551,357 for the three months to March 31, compared to $510,478 during the same period of 2016, despite the decrease in grant revenue.
Products and services revenue increased 16% to $525,998, mainly due to a 19% increase in instrument systems sales.
Sales of consumables also increased 43% to $63,264 in the quarter.
The operating loss decreased 4% to $999,103 from $1,045,945 for the same quarter of 2016.
A CE mark for preparation instrument
In February this year, it achieved a CE Marking for its sample preparation instrument Barocycler 2320EXTREME, giving it the green light to sell the product in Europe.
It can now market and sell the device in all 31 countries in the European Economic Area.
Meanwhile, in March, it significantly bolstered its sales capabilities by contracting with lead generating firm EKG Sales Associates, and by hiring two of its planned four field sales directors.
And it has now welcomed back veteran financial executive Joseph L Damasio back to the company, appointing him vice-president of finance and chief financial officer.
Damasio was employed at Pressure in 2007 as accounting manager, then as controller a year later and as vice president of finance and administration in 2011.
A major role in a cancer moonshot
In December, 2016, the company told investors that it expects to play a key role in the US $1.8bn “Cancer Moonshot” initiative after legislation was signed.
Specifically, it is set to benefit from the 21st Century Cures Act which included $1.8bn earmarked specifically for cancer research.
Pressure BioSciences’ technology is already being featured as an essential technology and used by leading researchers participating in the ‘Cancer Moonshot’ and other important research programs.
This program aims to accelerate cancer research and support other avenues that will improve the ability to understand, prevent, detect, treat, and even cure cancer. Its goal is to try and achieve in the next five years what would normally take ten years to complete.
This will be achieved in part by increasing the number of cancer researchers and studies, increasing the sharing of samples and data among these researchers, and by offering cancer researchers access to 21st Century, cutting-edge laboratory tools (instruments, consumables, etc.) that will enhance and improve their research studies.
Proprietary technology and winning over opinion leaders
Pressure Biosciences’ proprietary PCT-HD system has in recent years been trialled and adopted by leading scientists.
“We have a unique, patented technology that is now beginning to be appreciated by scientists around the world,” Richard Schumacher, the group’s founder and chief executive said earlier this year.
Schumacher highlighted that generally the life sciences have moved on significantly in past decades with the focus increasingly upon the intricacies within cells rather than what occurs around the outsides of them.
However, he says the technological approach to actually ‘open’ cells remains relatively crude and are still largely the same as they were in the 1980s (when he was last in the lab in a scientific capacity).
At Pressure BioSciences we’ve developed this new method, never been used before, to open the cell and get “all the good stuff” out.
“Essentially it is like a sponge, we squeeze it out. Where others beat up ‘the sponge’ using mechanical, we put it in a pressure chamber. It is much gentler, it is much more controllable.”
Schumacher points out that, generally speaking, scientists are stubborn people by nature, and convincing them to change their working practices has been one of the biggest challenges for the company.
But, by targeting what he calls ‘key opinion leaders’ in certain specialist fields Schumacher says Pressure Bioscience has started to overcome this hurdle.
“You have to go after the key opinion leaders. The scientists around the world that are recognised as the experts in studying proteins, DNA, RNA and lipids.
“We have to go after them and get them to use the technology with the assumption that once they’ve used it, they’ll realise how much better the system is. That’s what we’ve done."