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Protalix BioTherapeutics(PLX) - 2025 FY - Earnings Call Transcript
PLXProtalix BioTherapeutics(PLX)2025-05-20 21:30

Financial Data and Key Metrics Changes - The company reported revenues of 53millionforthefiscalyear2024,indicatingastrongcash−generatingpositionforabiotechfirm[6][29]−Cashattheendofthelastquarterwas53 million for the fiscal year 2024, indicating a strong cash-generating position for a biotech firm [6][29] - Cash at the end of the last quarter was 34.7 million, with projections to approach cash flow positive by the end of 2024 [29][30] Business Line Data and Key Metrics Changes - The first product, El Eliza, has generated approximately 12millioninBrazil,whileglobalsalesthroughPfizerareonly12 million in Brazil, while global sales through Pfizer are only 50 million out of a 1billionmarket,indicatingcommercializationchallenges[9][34]−Thesecondproduct,ElFabrio,isexpectedtocapture151 billion market, indicating commercialization challenges [9][34] - The second product, El Fabrio, is expected to capture 15% to 20% of a 3.1 billion market, potentially generating 130millionto130 million to 150 million in sales for Protalix [13][19] Market Data and Key Metrics Changes - The Fabry market was valued at 2.2billionlastyear,withexpectationsforgrowthto2.2 billion last year, with expectations for growth to 3.1 billion by 2030 [12][13] - The gout treatment market is projected to be 5.6billionwitha6.45.6 billion with a 6.4% CAGR, highlighting significant potential for the PRX-115 product [25] Company Strategy and Development Direction - The company aims to enhance its platform and explore rare renal diseases, while also focusing on the development of PRX-115 for gout treatment [28][30] - A strategic partnership with Chiesi is crucial, with a tiered royalty agreement that could yield significant revenue based on sales performance [14][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in commercialization for El Eliza but remains optimistic about future partnerships to improve market penetration [10][34] - The company believes that by 2030, total sales could reach between 120 million to 230 million, contingent on successful product launches and market acceptance [35] Other Important Information - The company has no debt and has cleaned its balance sheet, positioning itself for a fresh start [30] - Management noted that the share price drop following the first quarter results was disproportionate and attributed it to market reactions rather than operational failures [31][34] Q&A Session Summary Question: Is it reasonable to liken the competitive advantage of PRX-115 to that of El Fabrio? - Management believes PRX-115 could represent an even stronger competitive advantage due to its potential dosing regimen, which could significantly reduce treatment frequency compared to existing therapies [37] Question: What are the implications of sales fluctuations? - Sales are highly dependent on shipment logistics, and even minor delays can impact revenue recognition, but the company remains optimistic about profitability [38] Question: What are the expected costs for the upcoming trials? - The projected costs for the trials are manageable, estimated at around 24 million over two and a half years, which is significantly lower than previous trials [39]