Protalix (PLX) AI Stock Analysis

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Protalix

(NYSE MKT:PLX)

68Neutral

Protalix's overall score reflects strong technical momentum and positive corporate developments, such as debt repayment and operational achievements. However, financial performance and valuation challenges, including inconsistent revenue growth and a negative P/E ratio, temper the outlook. Continued focus on revenue enhancement and debt reduction will be crucial for future performance.

Protalix (PLX) vs. S&P 500 (SPY)

Market Cap

$204.45M

Dividend YieldN/A

Average Volume (3M)741.99K

Price to Earnings (P/E)99.6

Beta (1Y)0.44

Revenue Growth-18.47%

EPS Growth-70.64%

CountryUS

Employees213

SectorHealthcare

Sector Strength73

IndustryBiotechnology

Share Statistics

EPS (TTM)0.03

Shares Outstanding78,032,585

10 Day Avg. Volume687,213

30 Day Avg. Volume741,985

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.64

Price to Cash Flow (P/CF)12.20

P/FCF Ratio12.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.00

Price Target Upside476.92% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Protalix Business Overview & Revenue Model

Company DescriptionProtalix BioTherapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in the United States, Australia, Canada, Israel, Brazil, Russia, Turkey, and internationally. The company offers Elelyso for the treatment of Gaucher disease. Its product pipeline comprises PRX-102, a therapeutic protein candidate, which is in the last stage of clinical trials for the treatment of Fabry diseases; PRX-110, a proprietary plant cell recombinant form of human deoxyribonuclease I that has completed phase IIa clinical trials for the treatment of cystic fibrosis; PRX-115, a plant cell-expressed recombinant PEGylated Uricase for the treatment of gout; and PRX-119, a plant cell-expressed PEGylated recombinant human DNase I product candidate for the treatment of NETs-related diseases. The company has agreements and partnerships with Pfizer; Fundação Oswaldo Cruz (Fiocruz); and Chiesi Farmaceutici S.p.A. The company was founded in 1993 and is based in Hackensack, New Jersey.

How the Company Makes MoneyProtalix generates revenue primarily through the development and commercialization of its proprietary therapeutic proteins. The company makes money by entering into licensing agreements and collaborations with larger pharmaceutical companies, which often include upfront payments, milestone payments, and royalties on sales of products developed using its technology. Protalix's revenue streams are significantly influenced by these partnerships, as well as the commercialization of its own products. Additionally, the company may receive government grants and incentives for research and development activities within the biotechnology sector.

Protalix Financial Statement Overview

Summary

Protalix has shown substantial improvements in profitability and cash flow, crucial for its financial stability. While revenue growth has been inconsistent and leverage remains a concern, the positive momentum in financial health is evident. Continued focus on reducing debt and enhancing revenue will be key.

Income Statement

Positive

The company has demonstrated a positive turnaround in profitability over the last few years. Gross profit margins have been healthy, and there was a notable improvement in net income, moving from losses to profits recently. However, revenue growth has been inconsistent with a decline in the latest period, and EBIT margins are still relatively low, indicating room for operational improvements.

Balance Sheet

Neutral

Protalix's balance sheet shows a significant reduction in total debt, which is a positive sign for financial health. The equity position has improved from negative to positive, enhancing the equity ratio. However, the debt-to-equity ratio is still high, indicating potential leverage risks. The company needs to continue strengthening its equity to mitigate these risks further.

Cash Flow

Positive

The company has shown a strong improvement in cash flow, moving from negative free cash flow to positive in the latest period. The operating cash flow to net income ratio indicates a healthy conversion of profits into cash. However, the free cash flow growth rate is volatile, suggesting potential fluctuations in cash generation capabilities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
53.40M	65.49M	47.64M	38.35M	62.90M
	Gross Profit
29.08M	42.51M	28.05M	22.00M	52.02M
	EBIT
3.92M	10.46M	-13.01M	-20.46M	1.85M
	EBITDA
6.52M	11.65M	-10.78M	-18.94M	4.45M
	Net Income Common Stockholders
2.93M	8.31M	-14.93M	-33.98M	-14.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.83M	44.56M	22.18M	38.98M	38.55M
	Total Assets
73.42M	84.43M	55.79M	73.67M	67.93M
	Total Debt
5.53M	26.28M	33.47M	33.47M	64.40M
	Net Debt
-14.23M	2.65M	16.36M	-5.51M	46.13M
	Total Liabilities
30.21M	50.87M	66.43M	79.70M	94.97M
	Stockholders Equity
43.21M	33.57M	-10.64M	-6.04M	-27.04M
Cash Flow		Free Cash Flow
7.39M	-2.47M	-25.63M	-11.74M	-26.76M
	Operating Cash Flow
8.67M	-1.32M	-25.00M	-10.29M	-26.11M
	Investing Cash Flow
4.22M	-16.71M	-5.04M	18.92M	-19.95M
	Financing Cash Flow
-16.79M	24.67M	8.24M	12.08M	46.47M

Protalix Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.60

Price Trends

50DMA

2.45

Positive

100DMA

2.22

Positive

200DMA

1.65

Positive

Market Momentum

MACD

0.03

Negative

RSI

58.29

Neutral

STOCH

92.77

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLX, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.45, and above the 200-day MA of 1.65, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 92.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLX.

Protalix Risk Analysis

Protalix disclosed 64 risk factors in its most recent earnings report. Protalix reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Protalix Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLX	68 Neutral	$204.45M	99.62	7.64%	―	-18.47%	-70.64%
DBVT	58 Neutral	$187.70M	―	-135.96%	―	―	0.58%
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%
LXRX	44 Neutral	$185.12M	―	-167.66%	―	2479.34%	18.91%
TERN	44 Neutral	$209.51M	―	-29.56%	―	―	10.98%
HURA	34 Underperform	$183.46M	―	-203.07%	―	―	77.15%
GOSS	33 Underperform	$184.71M	―	-122.54%	―	―	81.94%

* Healthcare Sector Average

Performance Comparison

PLX

Protalix

2.60

1.45

126.09%

LXRX

Lexicon Pharmaceuticals

0.50

-1.12

-69.14%

DBVT

DBV Technologies SA - American

7.91

1.11

16.32%

HURA

TuHURA Biosciences

4.14

0.51

14.05%

GOSS

Gossamer Bio

0.83

0.01

1.22%

TERN

Terns Pharmaceuticals

2.24

-2.30

-50.66%

Protalix Earnings Call Summary

Earnings Call Date: Mar 17, 2025 | % Change Since: 16.07% | Next Earnings Date: May 9, 2025

Earnings Call Sentiment Neutral

Protalix demonstrated strong revenue growth and successfully completed a Phase 1 trial for PRX-115, but faced challenges with decreased R&D service revenues and lower net income.

Highlights

Record Revenue Growth

Protalix recorded revenues of $53 million for fiscal year 2024, marking a 31% increase compared to $40.4 million in 2023, driven primarily by increased sales to Chiesi.

Debt Repayment

Protalix repaid in full all outstanding principal and interest under its 7.5% senior secured convertible promissory notes, strengthening its balance sheet.

Successful Phase 1 Trial for PRX-115

The company completed all cohorts in the Phase 1 clinical trial of PRX-115, with positive results that support moving into a Phase 2 trial.

Reduced Expenses

Research and development expenses decreased by 24% to $13 million, and selling, general and administrative expenses decreased by 19% to $12.2 million.

Lowlights

Decline in License and R&D Revenues

Revenues from license and R&D services decreased by 98% to $0.4 million, compared to $25.1 million in 2023, primarily due to the completion of regulatory milestones.

Lower Net Income

Net income for the year was $2.9 million, down from $8.3 million in 2023, reflecting decreased milestone payments.

Company Guidance

In the Protalix BioTherapeutics fiscal year 2024 conference call, the company reported record revenues of $53 million, a 31% increase from the previous year. This growth was driven primarily by an $11.8 million increase in sales to Chiesi and additional sales to Brazil and Pfizer. The company also noted a reduction in research and development expenses by 24% to $13 million, due to the completion of the Fabry clinical program. Their cash position at the end of 2024 was $34.8 million, while they achieved a net income of $2.9 million. Protalix highlighted significant progress in their pipeline, including the completion of a Phase 1 clinical trial for PRX-115 and preparations for a Phase 2 study. They also emphasized their partnership with Chiesi and the anticipated growth in royalty revenues from Elfabrio, projecting revenues north of $100 million by 2030.

Protalix Corporate Events

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy

Protalix Achieves Key Milestones and Remains Debt-Free

Positive

Dec 23, 2024

Protalix BioTherapeutics announced significant achievements in 2024, including the validation of Chiesi’s submission for a less frequent dosing regimen of pegunigalsidase alfa for Fabry disease patients in the EU. The company completed a phase I trial for PRX 115, showing promise for treating gout, and is debt-free after repaying all convertible notes. Despite the challenges of regional conflicts in Israel, Protalix has maintained uninterrupted operations, positioning itself for future growth and innovation.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.