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“POTENTIAL GAME CHANGER TO THE LIFE SCIENCES TECHNOLOGIES”
Ajay Tandon Director of Research SeeThruEquity, LLC
“DISCOVERY STARTS
WITH SAMPLE
PREPARATION”
Richard T Schumacher President & CEO Pressure BioSciences, Inc.
“RESPONSE TO PRESSURE MAY HAVE PROFOUND IMPLICATIONS IN FUTURE DRUG DESIGN & DEVELOPMENT”
Professor Wayne L. Hubell Professor of Biochemistry at UCLA
In This Report
The Company
Patented Technology
Market Size
Benefits
Management Team
Analyst Opinion
Capitalization
PRESSURE CYCLING TECHNOLOGY Pressure BioSciences, Inc. (“PBI”) (OTCQB: PBIO) develops, markets, and sells propri- etary laboratory instrumentation and associated consumables to the life sciences sample preparation market, including in the discovery of biomarkers with a world-wide market estimated to be $26 Billion. PBI’s products are based on the unique properties of both constant (static) and alternating (pressure cycling technology, or PCT) hydrostatic pressure. PCT is a patented, enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to safely and reproducibly control bio-molecular interactions
OVER 250 SYSTEMS INSTALLED WORLDWIDE To date, PBIO has installed over 250 PCT systems in approximately 160 sites world-wide. There are over 100 publications citing the advantages of the PBIO PCT platform over competitive methods, many from key opinion leaders.
PBI’s pressure cycling technology employs a unique approach that we believe has the potential for broad applications in a number of established and emerging life sciences areas, including;
Sample preparation for genomic, proteomic, and small molecule studies
Pathogen inactivation
Protein purification
Control of chemical (enzymatic) reactions
Immunodiagnostics
Protein purification
The Company’s primary development and sales efforts are in the biomarker discov-ery, drug discovery and design, and forensics areas. Customers also use PBIO’s prod-ucts in other areas, such as bio-therapeutics characterization, soil & plant biology, vaccine development, and counter-bioterror applications.
StockWatchIndex Research Report OTCQB:PBIO
HUBB 880 Pressure Generator
PRESSURE CYCLING TECHNOLOGY
Pressure Cycling Technology, or PCT was developed by Pressure BioSciences Inc. (PBI). PCT is a patented tech-nology platform using alternate cycles of hydrostatic pressure between ambient and ultra-high levels to safely and conveniently control the actions of mole-cules to liberate, extract and/or prepare biological sam-ples (such as cells and tissues from human, animal, plant and microbial sources) for subsequent down-stream analysis.
Sample preparation precedes most forms of scientific analysis. It is often times consuming and error-prone. PBI’s PCT system can be used to economically and pre-cisely control the sample preparation process. The PBI PCT technology platform allows the user to control the interaction of bio-molecules, such as DNA, RNA, pro-teins, lipids, metabolites and other small molecules.
PBI’s product line includes five different models of pres-sure generating instruments and over a dozen different consumables used in these instruments. The combina-tion of these instruments and consumables make up PBI’s PCT Sample Preparation System, or PCT Platform.
PBI has entered into a co-marketing agreement with SCIEX, the clear market leader in the mass spec field for proteomics with a commanding market share. PBI and SCIEX will jointly utilize PCT-based sample preparation systems such as the PCT-HD from PBI with SWATH®Acquisition based next-generation proteomics.
TWENTY FOUR PBI PATENTS PBIO’s proprietary technology platform and its associat-ed consumables has been diligently protected by management, who has been awarded 24 worldwide patents.
CAPITALIZATION
The Barocycler NEP3229 is an afforda-ble, high pressure laboratory instrument designed to fit on a bench top, inside a biological safety cabinet, or on the shelf of a cold room. It is capable of pro-cessing up to three samples simultane-ously using specially designed, single-use containers called PULSE Tubes.
Barocycler NEP3229
Barocycler 2320EXT The new Barocycler 2320EXT instrument replaces the 2320-ENH in the PCT-HD workflow. The 2320EXT incorporates superior pressure and temperature con-trol for the next generation of high pres-sure sample preparation. Like the 2320-ENH, the 2320EXT is a compact, bench top instrument that can process up to 16 samples simultaneously using PCT MicroTubes.
Barozyme HT48
The Barozyme HT48, one of the new-est member of PBI’s Pressure Cycling Technology (PCT) Barocycler family of products, is a high throughput bench-top instrument designed for acceler-ated enzymatic digestion of proteins at high pressure .
HUB 880 The Barocycler HUB880 is a compact, portable, bench-top, ultra-high pres-sure generator that uses an air pres-sure-to-liquid pressure intensifier allowing the user to generate fluid pressure as high as 90,000 psi (~6.2. kilobar).
Projected Income 2016 - 2019
THE MARKET ESTIMATED TO GROW TO $26 BILLION
PBI develops and distributes lead-ing-edge technology systems and consumables in a very large, but underserved research services market for the preparations of samples, used in the discovery of biomarkers. The worldwide mar-ket is estimated to be $26 Billion, according to ASD Reports.
CO-MARKETING AGREEMENT WITH SCIEX In January of 2016 PBI entered into a co-marketing agreement with SCIEX to improve Protein Quantification in complex sam-ples. SCIEX is one of the six major mass spectrometry suppli-ers in the world and is owned by Danaher Corp with a market cap of $60 Billion. SCIEX is the clear market leader in the mass spec field for proteomics and holds a commanding market share.
According to their co-marketing agreement, PBI and SCIEX will jointly promote PCT-based sam-ple preparation systems, including the PCT-HD from PBI with SWATH® Acquisition based next generation proteomics.
REVENUE GROWTH
Expanded sales and marketing activities from existing and new products (instruments and con-sumables) has already begun to accelerate PBI’s revenue genera-tion in 2016.The joint activities with SCIEX will add to this in-crease in revenues and the com-pany expects to secure a signifi-cant market share with its superior pressure cycling technology (PCT). PBI’s PCT platform is gain-ing consistent and increasing recognition from leading experts in the life science market. PBI products represent significant technological and economical ad-vantages over competing existing technology.
PCT PLATFORM - IMPACT AREAS
PBI’s powerful, patent protected PCT platform is addressing a large market, com-prised of an estimated 500,000 scientists in 80,000 research labs worldwide. PBI’s PCT technology platform is currently used in eight significant impact areas with multiple adjacent sectors currently under evaluation.
Agriculture/Food Science
Environmental Epidemiology
Anti-Bioterror
Rational Drug Design
Biomarker Discovery
Fecal Lipidomic Profiling
Personalized Medicine
Improved Rape Kit Testing
PBI DISTRIBUTION PBI is continuously developing its sales and marketing strategy. It plans to in-crease its internal direct sales and marketing staff during the second half of 2016 and has added several new strategy distribution partners in specific areas of the life sciences. The company believes that its PCT system is best suited for strategic partners or distributors that are already established in the spectroscopy and fo-rensic areas. The company is currently in negotiations with significant players in both sectors.
CONSTANT SYSTEMS LTD Exclusive Agent for PBI Outside North America, South America, China and Japan POWERTECH Leading distributor of laboratory and industrial testing instruments in China
VERITAS
Distributor of products for the Japanese life sciences research community OROBOROS Australian distributor for the Schredder SG3 and Schredder Tubes only COLE PARMER US distributor for the Schredder SG3 and Schredder Tubes only KERAFAST US medical distributor
SELECTED MARQUEE CUSTOMERS
PBIO MANAGEMENT TEAM
FOCUSED ON ADVANCING LIFE SCIENCES Pressure BioSciences’s headquarter is in South Easton, MA and it has nine (9) full-time employees nationwide. The Company was founded in 1978 as Boston Biomedica, Inc. (BBI) by Richard T. Schumacher, the current CEO of the com-pany. When BBI was sold in 2004, all that remained in BBI was the PCT technology platform and the anti-HIV technolo-gy that was to become Panacos Pharmaceuticals. Mr. Schumacher remained at the company, had its name changed to Pressure BioSciences, had its stock symbol changed to PBIO, hired the management team that remains in place today, and re-started the company based on its PCT technology platform. Mr. Schumacher continues to be supported by this experienced management team and a high pedigree Board of Directors. For more detail visit www.pressurebiosciences.com.
Mr. Richard T. Schumacher, the founder of Pressure BioSciences, has served as a director of the Company
since the formation of its legacy business, Boston Biomedica, Inc., in 1978. He has served as CEO of Pressure BioSciences since April 2004 and President since September, 2004. He previously served as CEO and Chairman of the Board of Boston Biomedica from 1992 to February, 2003 and as President from 1986 to August 1999. Mr. Schu-macher served as the Director of Infectious Disease Services for Clinical Sciences Laboratory, a New England-based medical reference laboratory, from 1986 to 1988. From 1972 to 1985, Mr. Schumacher was employed by the Cen-ter for Blood Research, a non- profit medical research institute associated with Harvard Medical School. In addition to PBI, Mr. Schumacher has founded or co-founded three other life sciences companies: Boston Biomedica, Inc. (NASDAQ: BBII), Panacos Pharmaceuticals (NASDAQ: PBIO), and Trinity Biotech (NASDAQ: TRIB). The combined market capitalization of these three companies reached approximately $1 billion at their respective stock highs. Mr. Schumacher received a BS in Zoology from the University of New Hampshire.
Dr. Edmund Ting joined Pressure BioSciences as Senior Vice President of Engineering in April, 2006. Prior to joining
the company, Dr. Ting served as the Chief Research Officer of Avure Technologies, a leading worldwide manufacturer of high pressure hydrostatic processing equipment for the food and materials processing industry, Flow International Corporation, a world leader in the ultrahigh pressure waterjet cutting technology market, and the parent company of Avure Technologies. Dr. Ting last held the position of VP of Engineering Research and Development at Flow Interna-tional Corporation. Dr. Ting was also a research scientist and a group leader at Grumman Aerospace Corporation. Dr. Ting earned a BS degree in mechanical engineering from Northeastern University and a Sc.D. in materials science and engineering from the Massachusetts Institute of Technology.
Dr. Nathan P. Lawrence joined Pressure BioSciences Inc. in August, 2005, serving as Director of Research and
Development until his promotion to Vice President of Marketing and Business Development in April, 2006. Dr. Lawrence was responsible for the development of protocols based on Pressure Cycling Technology (PCT). From 2004 through 2005, Dr. Lawrence worked for 454 Life Sciences in product development and prior to 454 Life Sciences, Dr. Lawrence was Director of Research and Development for Boston Biomedica, Inc. He was responsible for the development of PCT, as well as the development of nucleic acid-based diagnostic assays. Prior to joining Boston Biomedica, Inc., Dr. Lawrence held several positions with increasing responsibility in Research and Develop-ment and manufacturing at Becton Dickinson and Gene Trak Systems. Dr. Lawrence holds a BA from the University of Miami, an M.S. from Southern Connecticut State University, and a Ph.D. from Yale University.
Dr. Alexander Lazarev joined Pressure BioSciences in April, 2006 as Director of Research and Development and was promoted to Vice President of Research and Development in March, 2007. Prior to joining Pressure BioSciences, Dr. Lazarev worked as a Visiting Scientist at the Barnett Institute of Chemical and Biological Analysis at Northeastern University, and served as a Director of New Technology Development at Proteome Systems, Inc., where he was in-volved in research and development of innovative proteomic analysis applications. Dr. Lazarev previously held senior research positions at Genomic Solutions, Inc. and PhytoChem Technologies, Inc. Most of Dr. Lazarev’s scientific career has been dedicated to development of methods and applications for biochemical analysis. Dr. Lazarev has been elected as an Executive Board member of the MASSEP.org, a non-profit scientific discussion forum dedicated to the promotion and improvement of chromatography and other analytical technologies. Dr. Lazarev earned his undergraduate and graduate degrees at the University of Kazan, Russian Federation.
Pressure BioSciences, Inc.
14 Norfolk Avenue South Easton, MA 02375 Phone: (508) 230-1828 [email protected]
StockWatchIndex, LLC
Rainer Poertner, Chief Analyst
4712 Admiralty Way, #173
Marina del Rey, CA 90292
www.stockwatchindex.com
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dealer or a licensed investment advisor and does not generate any investment banking or commission-based revenue with respect to the securities of the
company described herein. StockWatchIndex is a Research and Information Marketing firm that has been hired by Small Cap Nation in New York to in-
crease market awareness for Pressure BioSciences,Inc.(OTCQB:PBIO) and has been compensated for the preparation of this report in cash. This report is
based on information from the company or other third party/public sources that we consider reliable, but we do not guarantee to be accurate or complete.
Nothing in this report may be construed as investment advice or a solicitation to buy stock. All information contained herein is subject to change without
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from the company. This is not an offer to buy or sell, or the solicitation of an offer to buy or sell any securities in PBIO, or any other stock mentioned in this
report, in any jurisdiction where such an offer or solicitation would be illegal.
SWI INVESTMENT OPINION
PBI IS A TECHNOLOGY LEADER IN AN EXPANDING MARKET PBI has developed a patent protected PCT technology platform with significant competitive advantages over existing technologies in the sample preparation market. PBI has secured leading distributors for its products, has already sold 250 systems that have been installed worldwide and is increasingly gaining recognition by leading research labs, heads of university departments and experts in the industry. There are more than 100 publications touting the advantages and great potential of PCT. Entering into a joined partnership with SCIEX, one of the six major mass spectrometry sup-pliers in the world, has positioned PBI well in a large, very specialized and underserved sector of the life science indus-try.
FINANCIAL RESULTS
While PBI is still in its early stages of commercialization, the company is nonetheless generating revenue. 2015 reve-nue has increased by 31% to $1.8 Million from $1.4 Million in 2014. The cost of products and services has decreased and gross margins have drastically increased, while net loss has increased to $7.4 Million in 2015, primarily because of the derivative liability accounting related to the company’s recent $6.3 million financing. Q1 2016 revenue has again improved by 16% YoY from Q1 2015. Based on the co-marketing agreement with SCIEX, the expectations ex-pressed by the company, and the large potential market for the company’s products, we anticipate double-digit growth in 2016 and rapid growth in the years to follow.
FINANCING PBI recently completed an over-subscribed $5 million offering of fixed price convertible debentures at $6.3 million. Management has shown extreme financial discipline and smarts and has eliminated 100% of its variable rate con-vertible debt. The balance of the proceeds received was used for expanding sales & marketing efforts and increasing manufacturing capacity.
VALUE PROPOSITION
The Company has demonstrated extraordinary fiduciary responsibility and is planning an up-list to a National Exchange. Based on the Company’s guidance, our own estimates and by applying a multiple of 25x combined with our standard discounts for risk consideration, we believe that a share price of $3.82 or higher by 2019 should be achievable. While PBI might still be considered a biotech startup, the company has proven technology already installed worldwide and the feasibility and likelihood of wide acceptance of its PCT technology has been supported in over 100 scientific publica-tions by many leading industry experts and institutions in the life sciences field. Accordingly, we consider the invest-ment risk considerably lower than with most other development stage biotech companies and believe that the prudent investor can realize a significant return as soon as in 2017.
Note: In 2015, together with an investment bank, PBI formed a subsidiary called Pressure BioSciences Europe (“PBI Europe”) in Poland. PBI has 49% ownership interest with the investment bank retaining 51%. As of now, PBI Europe does not have any operating activities but is expected to commence operations later in 2016. There is no consideration in the Financials for this transaction yet.