Protalix Biotherapeutics Inc (NYSEMKT:PLX) Deserves More Exposure Than What It Is Getting Now

Protalix Biotherapeutics Inc

Despite having positive interim data of the clinical researches, Protalix Biotherapeutics Inc (NYSEMKT:PLX) isn’t getting the market respect it should have. That is why, throughout this month, the company’s stock remained beaten. But, don’t they say, everything happens for a reason? So, the company’s stock, despite all odds, should get cheap exposure. The company, which at present, is working on the ProCellEx protein expression system, may have the protein production plant cost estimated at around $20 million. The cost is reduced by a large number, which has even compelled Pfizer Inc. (NYSE:PFE) to join the company on board.

Protalix Biotherapeutics Inc- Pfizer Inc. Relationship

At present, Pfizer Inc. has purchased the commercialization rights of drug called Elelyso. This is Protalix Biotherapeutics Inc’s product that works for the Type 1 Gaucher disease. Apart from Brazil, Pfizer has bought the drug’s rights across the world. Now, what is interesting that Protalix Biotherapeutics Inc recently also announced that the government of Brazil has agreed to buy $24 million of this drug for the entire year. At present, Protalix Biotherapeutics Inc’s market capital is $48 million.

Protalix’s system and the drugs creation

The ProCellEx protein expression system is used by company for creation of three of the drugs, viz. OPRX-106, PRX-102 and 110, which target the ulcerative colitis (UC), cystic fibrosis (CF) and Fabry disease, respectively.

The problem is that all the three conditions can have a standard treatment, but they all have limiting factors. So, the company’s drugs may or may not work. At present, Protalix aims to not just market these drugs, but also, build them by addressing these limiting factors.

Your takeaway from the discussion

The conclusion is that, from where we see the situation, it is possible that the company starts earning break even by the beginning of 2018, but its drugs may fail, even if the interim data shows positive result. The company’s product pipeline may end up being scrapped, due to the recommendation by FDA.  But, isn’t that the risk we can all take on a biotech company?