Protalix Biotherapeutics ((PLX)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Protalix BioTherapeutics’ recent earnings call painted a picture of robust growth and promising developments, despite some challenges. The company reported significant revenue increases and advancements in their product pipeline, particularly with Elfabrio and PRX-115. While there were concerns about decreased sales in certain regions and rising expenses, the overall sentiment remained positive, buoyed by strong partnerships and market potential.
Significant Revenue Increase
Protalix experienced a remarkable 50% increase in revenues from selling goods in the first half of 2025 compared to the same period last year. This growth was primarily driven by the sales of Elfabrio to Chiesi, an international biopharmaceutical group, highlighting the product’s strong market performance.
Elfabrio Market Potential
Elfabrio is positioned in a lucrative global market, estimated at USD 2.3 billion in 2025, with expectations to reach USD 3.2 billion by 2030. Protalix anticipates that royalties from Elfabrio could exceed $100 million by 2030, reflecting its potential to capture a significant market share.
Operational Highlights
Protalix’s partnership with Chiesi has been a cornerstone of its operational strategy, with Chiesi making substantial investments in medical, regulatory, and commercialization programs for Elfabrio. This collaboration is expected to drive further growth and market penetration.
PRX-115 Development Progress
The development of PRX-115, a promising gout product candidate, is progressing well. Protalix plans to initiate a Phase II study in the second half of 2025, building on encouraging results from previous studies, which could open new avenues for growth.
Financial Performance Improvement
The company reported revenues of $15.4 million for Q2 2025, marking a 16% increase compared to Q2 2024. Protalix also achieved a net income of approximately $164,000, a significant turnaround from a net loss of $2.2 million in the previous year.
Decrease in Sales to Brazil and Pfizer
Despite overall revenue growth, Protalix reported a decrease of $4.7 million in sales to Brazil and $1.2 million to Pfizer, attributed to timing differences. This highlights some regional challenges the company faces.
Increased Research and Development Expenses
R&D expenses saw a substantial increase of $3 million, or 100%, compared to Q2 2024. This rise was primarily due to preparations for the Phase II clinical trial of PRX-115, indicating the company’s commitment to advancing its product pipeline.
Financial Expenses Increase
Protalix experienced an increase in financial expenses due to exchange rate costs and lower interest income from bank deposits, resulting in net financial expenses of $0.5 million for Q2 2025.
Tax Expense Increase
The company recorded tax expenses of approximately $0.5 million for Q2 2025, compared to a tax benefit of approximately $0.1 million in Q2 2024, reflecting changes in its financial landscape.
Forward-Looking Guidance
Looking ahead, Protalix is optimistic about its future prospects. The company anticipates Elfabrio royalties to exceed $100 million by 2030, based on a projected 15% to 20% market share of the $3.2 billion Fabry disease market. This forecast underscores the potential for sustained growth and market leadership.
In summary, Protalix BioTherapeutics’ earnings call conveyed a positive outlook, driven by significant revenue growth and promising product developments. Despite facing some challenges, the company’s strong partnerships and strategic initiatives position it well for future success.