The below is my novice attempt to help PIQ gain more attention to new investors, I believe PIQ offers a good opportunity and is worthy of as much attention as possible. As always do your own research, the below could be completely wrong
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In the last few years, proteins have become the drug class of choice for the pharmaceutical industry because of their intimate role in biological systems. Thus proteomics technology is now playing a key role in understanding disease, from finding new diagnostic biomarkers to determining drug targets, and discovering new biopharmaceutical drugs.
PILL is recognised as a global leader in the field of proteomics.
It received the world’s first ISO 17025 laboratory accreditation for proteomics services, and operates from state-of-the art facilities at the Proteomics International Laboratories.
The company’s business model harnesses its proprietary technology platform to diagnosis disease through Biomarkers (a naturally occurring molecule, gene, or characteristic by which a particular pathological or physiological process, disease, etc. can be identified).
The company recently launched it’s first solution called ‘PromarkerD” which can successfully predict (with 86% accuracy) if a diabetic will develop chronic kidney disease. PromarkerD is the world's first accurate diagnostic test for diabetic kidney disease and has been patent approved in all major developed countries.
PIQ commercialize the PromarkerD test via health care partners, usually through a per use royalty fee.
In March earlier this year, PIQ released PromarkerD into the Dominican Republic as an entry point for wider release into the US Market. The DR commercial deal was valued at $1.5M over 9years.
On May 28th, PIQ released PromarkerD into the United States through a private health care industry partner called PrismHealthDx.
The commercial value of the deal has been made confidential and only highlights that PIQ will receive royalty payments for each test. 1.5M people are diagnosed with diabetes in the USA annually.
Assuming royalty fees of $10 per test with 50% of annual diagnosed, returns revenues of $7.5M.
It is very likely that Japan, Australia, New Zealand, Europe & China will also see PromarkerD released within the next 1-2years.
With a market cap under $20M this present’s a strong upside in SP in the mid to long term.
PIQ also generates revenue through its Analytical Services division. This division focuses on specialist research on Biosimilars and charges via a fee-for-service model.
The global biosimilars market is expected to reach $6.2 billion by 2020, almost trebling from its 2015 level, as it seeks to replicate the multiple billion dollar blockbuster drugs that are coming off patent.
PIQ’s analytics division generated $1.1M in receipts FY 2017 and is projected to come in under $1M this FY.
Additionally, in February earlier this year PIQ acquired 10% of CPR (an Australia private clinical research firm with revenues of $15Mpa).
The acquisition will boost PIQ’s exposure in the industry to generate additional incomes from the Analytical Services division. CPR Investment & Partnership (10% acquisition) What are Biosimilars? This short video below explains the new generation of drugs using Biologics and how Biosimilars offer the same results at a much cheaper cost.
Financials
PIQ is financially strong with a recent options which expired in March and generated $3.5M capital.
PIQ’s FY 2017 OPEX came in $2.9M and FY2018 is projected to come in at $3.1M. FY17 Revenue from receipts only was $1.1M.
PIQ also benefit from Government Grants for it’s research work, however this has been excluded from revenue calculation to ensure accurate analysis.
PIQ received $920k in Q3 FY18 from R&D grants.
With over $3M in cash and on-going projected revenues from their analytics division and as PromarkerD is progressively rolled out around the world with royalty revenue coming through, in my opinion PIQ is increasingly becoming de-risked and presents a good opportunity to invest into a market leading (proteomics) medical company focused on next generation predictive diagnostics & biosimilars.
End: Please do your own research before considering any investment.
The information presented is not financial advise and is for informative purposes only.
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