Proteomics International Laboratories Ltd (ASX:PIQ) has generated monthly revenues of $100,000 in each of March and April, a 60% uplift on the previous monthly average.
Several recent contract wins support ongoing activity.
The company’s strategy to expand its analytical services business and in so doing, underpin its cash position.
PILL's analytical services generate a regular ongoing revenue stream by providing a fee-for-service offering in life sciences.
Growth is being driven by the generic protein drug market as the sector seeks to replicate the multiple billion dollar drugs that are coming off patent.
PILL has one of the few laboratories accredited to accurately analyse the make-up of these drugs as being like-for-like with the brand-name drugs they seek to replace.
Based on monthly figures to date, the revenue trend is expected to continue.
Recent contract wins
Activity has been concentrated on the company's testing of generic protein drugs (biosimilars) and is underscored by a series of recent contracts including:
- Biosimilar testing for allergic asthma drug (Europe) - US$120,000 (A$165,000);
- Biosimilar testing for multiple sclerosis drug (India) – US$67,000 (A$92,000); and
- Biosimilar testing for tissue repair drug (Middle East) - US$29,000 (A$40,000).
These contracts will flow into future revenues and do not include any potential new business derived from the recent trade visit to India, which targeted biosimilars.
PILL is anticipating significant fee-for-service work to flow from its recent marketing initiative in India.
Analysis
Monthly revenues of $100,000 in each of March and April is a significant achievement for PILL considering the company recorded total cash receipts of $484,000 for the combined September, December and March quarters.
With the recent contract wins expected to flow into future revenues and additional revenues expected from the recent marketing in India, PILL is positioned for a strong final June quarter.
The key advantage of PILL's technology platform is that it allows the company to quickly and accurately (means fewer samples to start with) and cost effectively assess potential new drug candidates in a matter of months.
This is opposed to an extended number of years used in the traditional screening process to discover new drugs.
PILL therefore has the ability to repeat the process multiple times while traditional drug discovery would still be undertaking its first program.
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