Protalix Biotherapeutics ((PLX)) has held its Q1 earnings call. Read on for the main highlights of the call.
The recent earnings call for Protalix BioTherapeutics presented a balanced sentiment, reflecting both positive and negative aspects of the company’s financial performance and strategic developments. The company highlighted substantial revenue growth and promising pipeline advancements, supported by a robust cash position. However, these positive developments were tempered by increased costs related to goods sold and research and development, alongside a continued net loss.
Significant Revenue Growth
Protalix BioTherapeutics reported a remarkable 70% increase in revenues from selling goods, reaching $10 million in Q1 2025, compared to $3.7 million in Q1 2024. This growth was primarily driven by a $5.9 million increase in sales to Pfizer and a $400,000 increase in sales to Fircruz in Brazil, showcasing the company’s expanding market reach and successful partnerships.
Positive Developments for PRX-115
The company shared encouraging results from the first in human study of PRX-115, which demonstrated increased exposure and a rapid reduction in plasma uric acid levels in a dose-dependent manner. Protalix plans to initiate a phase two clinical trial for PRX-115 in gout patients later this year, marking a significant step forward in their clinical pipeline.
Reduction in Operating Expenses
Protalix reported a 16% decrease in selling, general, and administrative expenses, which fell to $2 million in Q1 2025 from $3.1 million in Q1 2024. This reduction was primarily attributed to decreased salary-related expenses and selling expenses, reflecting the company’s efforts to optimize operational efficiency.
Cash Position
As of March 31, 2025, Protalix’s cash, cash equivalents, and short-term bank deposits totaled approximately $34.7 billion. This strong cash position provides the company with the financial flexibility to support ongoing research and development initiatives and strategic growth opportunities.
Increased Cost of Goods Sold
The cost of goods sold surged by 215% to $8.2 million in Q1 2025 from $2.6 million in Q1 2024. This increase was primarily due to the heightened sales to Pfizer and Fircruz in Brazil, reflecting the growing demand for Protalix’s products but also highlighting the associated cost challenges.
Higher Research and Development Expenses
Research and development expenses rose by 21% to approximately $3.5 million in Q1 2025 from $2.9 million in Q1 2024. This increase underscores Protalix’s commitment to advancing its clinical pipeline and investing in future growth opportunities.
Net Loss
Protalix reported a net loss of approximately $3.6 million or $0.05 per share for Q1 2025, compared to a net loss of $4.6 million or $0.06 per share in Q1 2024. While the net loss decreased year-over-year, it remains a critical area for the company to address as it continues to balance growth with profitability.
Forward-Looking Guidance
Looking ahead, Protalix BioTherapeutics aims to initiate a phase two clinical trial for PRX-115 later this year. The company is also collaborating with Chiesi Global Rare Diseases on the potential approval of a reduced dosing frequency for their Fabry disease treatment by the European Medicines Agency. These initiatives reflect Protalix’s strategic focus on expanding its product offerings and enhancing its market position.
In conclusion, the Protalix BioTherapeutics earnings call presented a balanced view of the company’s current performance and future prospects. While significant revenue growth and promising pipeline developments were key highlights, increased costs and a continued net loss remain challenges. The company’s strong cash position and strategic initiatives provide a solid foundation for future growth, making it a company to watch in the biotherapeutics sector.