Large Order for ProMetic Delivers on Corporate Forecast

Large Order for ProMetic Delivers on Corporate Forecast

By: Dylan Sikes - AllPennyStocks.com News

Tuesday, November 19, 2013

In the small cap and microcap world, there’s plenty of fluff that gets pumped out by management teams purporting strong sales that will be following one type of agreement or another. If most of us had a penny for every press release about an LOI, MOU, distribution agreement, etc. that contained effectively executive idle prattle about what the deal will mean to revenue, we could probably all be comfortably retired by now. It’s great to see when an executive delivers on the deal as in the case of ProMetic Life Sciences Inc. (TSX:PLI) (OTCQX:PFSCF) on Tuesday. Back in July, Laval, Quebec-based ProMetic said that it had entered a licensing and long-term supply agreement with an existing client for ProMetic’s affinity resin. As is the case many times, the customer was unnamed, but the company was referred to as a “global leader in the biotherapeutics industry.” According to the company, the deal followed development and scale-up of its technology to deliver a new affinity resin specifically designed to enhance the quality and purity of an existing biopharmaceutical product manufactured in multi-ton quantities.


ProMetic put it on the line, saying that they expected annual revenues to quickly exceed $6 million annually.

Today, the agreement was reported to bear fruit for the first time, with a new $5.1 million purchase order from the aforementioned multinational biopharmaceutical client. ProMetic intends to manufacture the affinity resin at its production facility located in the Isle of Man in the United Kingdom with the product expected to be delivered to the client throughout 2014 and early 2015. ProMetic anticipates additional orders will follow once the initial purchase order is fulfilled.

"This order for affinity resin provides confirmation of the rapidly growing demand for this particular product and is completely in-alignment with ProMetic's expectations. We are now seeing real and significant growth in demand for our affinity purification products as our clients recognise the value that ProMetic's technology provides with respect to market advantage and reduction of process costs,” said Dr. Steve Burton, chief executive of ProMetic BioSciences Ltd.

The order is setting ProMetic up for a solid start to 2014 as revenue and profits slid year-over-year in the third quarter. At $15.6 million, total revenue for the first nine months of 2013 is slightly above $15.0 million for the same period in 2012, but the revenue has come at lower margins. This, coupled with greater spending to advance drug candidates into clinical trials and preparation to launch a new plant in Laval, resulted in a $6.3 million downward swing in EBITDA in the first three quarters of the year as compared to the year prior. Non-cash warrant liabilities factored into the company posting a net loss of $9.9 million for the first three quarters, versus a net loss of $1.4 million for the same time last year.

Subsequent to the end of the quarter, ProMetic completed an equity raise, netting nearly $24 million to continue drug and corporate developments. The company is developing PBI-1402 as an oral treatment for anemia and PB-4050 as a new drug candidate for idiopathic pulmonary fibrosis.

Shares of PLI have held a firm uptrend for the past year; rising form lows of 17 cents in December 2012 to a high of $1.14 last month (570% gains bottom to top). The stock has cooled off a bit and pulled back to the 50 day moving average, closing Monday at 86 cents. In early Tuesday action, the stock price has edged up 3.5 percent to 89 cents as investors digest the purchase order news.

Copyright © 2013 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Other Penny Stock Movers

Miner Scores with Acquisition of Promising Silver District in Mexico
Mixed Signals: Durable Goods Orders Up, But Not All Sectors Are Soaring
Biotech Steals The Show Following Pre-Clinical Data Announcement
Most Popular
FREE Newsletter
AllPennyStocks.com Favorites


Back to Top