Pressure Bio Wins New Grant - Analyst Blog

Written by Grant Zeng, CFA.

A Competitive Grant Has Been Awarded to PCT Platform Technology

Earlier this month, Pressure BioSciences, Inc. (PBI) announced that it has been awarded a Therapeutic Discovery Grant (TDG) for $244,479.

The TDG Program is designed for companies with 250 employees or less. Its goal is to support investment in qualified biomedical projects that "show potential to develop new therapies, address unmet medical needs, and reduce the long-term growth of healthcare costs." The program's purpose is also to encourage projects that will create and sustain high quality, high-paying jobs in the United States. Special consideration is given to projects that advance the aim of curing cancer in the next 30 years.

Thousands of research projects were submitted. Each was evaluated on its ability to produce potential therapies, address unmet medical needs, reduce healthcare costs and/or advance the goal of curing cancer. Only projects that could meet one or more of these goals were deemed eligible for an award. Pressure BioSciences was chosen because of its novel, patented and enabling pressure cycling technology (PCT) platform.

The amount of funds awarded were the maximum allocation allowed under the program. The grant program was very competitive and being selected is a strong validation of the company's PCT platform.

GEN Co-Sponsors Roundtable Discussion on Novel Bioremediation Techniques

In late October 2010, Genetic Engineering & Biotechnology News (GEN) co-sponsored a roundtable discussion on new ways to use biological solutions to assist in environment cleanup after manmade or natural disasters. The roundtable "Gulf Oil Spill: Using Modern-day Biology to Assess the Environmental Impact and to Help in Remediation" was also sponsored by the Venture Development Center (VDC) at The University of Massachusetts Boston where the discussions took place.

The panel members included John Farrington, UMass Dartmouth & Woods Hole Oceanographic Institute (Emeritus); Olivia Mason, Lawrence Berkeley National Laboratory; Doug Bartlett, Scripps Oceanographic Institute; Juanita Urban-Rich, UMass Boston; and Richard T. Schumacher, Pressure BioSciences Inc.

The effects of an oil spill, no matter the size, can be devastating on both marine and coastal life. Consequently, rapid and effective cleanup methods need to be in place before the next spill. Several technologies have been proposed and/or used to cleanup the spill in the Gulf, including the mechanical collection of oil and chemical dispersion.

However, there is a growing sentiment toward finding and using natural biological solutions. During the roundtable, scientists from academia and industry discussed the effectiveness of biological methods that can help improve the understanding of the marine environment, assess the impact that oil spills of any magnitude have on this complex yet delicate ecosystem, and help monitor the effectiveness and even be part of the cleanup procedure during remediation.

Pressure BioSciences' PCT platform for sample preparation is a unique, powerful and superior method in many applications including forensic application and agricultural application. The Company recently established a collaboration with the Lawrence Berkeley National Laboratory (LBNL).

Scientists at LBNL are using PBIO's PCT platform in studies aimed at improving the analysis of microorganisms in environments with low biomass, such as oil reservoirs or deep sea oil plumes from oil spills. It is possible that improved microbe analysis may lead to better strategies for oil spill clean-up.

The application in this field could lead to increased installation of the company's equipment and the consumption of its consumables which in turn will ultimately translate into top-line growth.

We have an Outperform rating on the company's shares with a price target of $5 per share.