REDONDO BEACH, CA / ACCESSWIRE / October 20, 2015 / Pressure BioSciences Inc. (OTCQB: PBIO), a developer and marketer of proprietary laboratory instrumentation and associated consumables to the $6 billion life sciences sample preparation market, aims to develop a rape kit test method based on its patented PCT Platform and launch it commercially within the next 18 months. With the potential to significantly speed up rape kit testing, the technology could help fill an enormous unmet need in the United States.

In addition, the company's improving revenue, streamlined expenses, and debt reduction has brought its potential up-listing to a national exchange closer to reality. An up-listing would help improve transparency and liquidity for existing investors, while opening up the doors to institutional investments by mutual funds. These efforts could unlock substantial short and long-term value for shareholders.

In this article, we will take a look at why investors may want to pay close attention to these significant near-term catalysts over the coming weeks and months.

Improving Rape Kit Testing

The U.S. has an estimated backlog of approximately 400,000 rape kits, while some 180,000 new sexual assault cases add to that number each year. Using traditional techniques, the recovery of high quality DNA from cotton swabs can prove difficult, since the sample is often trapped in cotton fibers. The process is time-consuming, expensive, and fails to recover DNA in some cases, which has created a significant unmet need for a better solution.

In many cases, the solution proposed by governments has been to throw more money at the problem to increase the labor needed to process the rape kits. Manhattan District Attorney Cy Vance has put $38 million in forfeiture funds to help clear the massive backlog, while Vice President Joe Biden and Attorney General Loretta Lynch announced that the Department of Justice has set aside an additional $41 million for the effort.

Pressure BioSciences aims to tackle the problem from a different angle through a partnership with the forensic experts at Florida International University ("FIU"). By leveraging PBIO's PCT Platform, researchers at FIU have already demonstrated significantly decreased processing times and improved efficacy when testing rape kits, while using inexpensive reagents on a semi-automated platform. The goal is to speed up the testing process, which would subsequently allow many more tests to be completed in less time. This greater testing throughput should ultimately result in more criminals being taken off the street and faster achievement of justice for victims.

The increased media focus on the rape kit backlog means that more funding is finally being diverted into the space. By directing this funding towards a more efficacious target, the company hopes to both dramatically improve rape kit testing processes nationwide and deliver value to its shareholders by introducing a groundbreaking technology into a new market.

Preparing for an Up-Listing

PBIO has made substantial progress over the past few quarters in preparation for a potential up-listing to a national exchange.

In late-September, the company announced that it received $1.1 million from an additional closing on its $5 million private placement, which brings the total raised to $3.28 million. The funds will be used to expand its sales and marketing, increase manufacturing capabilities, ready the company for an up-listing, and retire all variable rate convertible debt. So far, the company has eliminated about 70% of the debt, making a big step in the right direction.

The company has also been steadily growing on an operational level. In August, the company announced a 34.4% increase in quarter-over-quarter revenue, driven by improvements in its consumable sales. Management anticipates exceeding $500,000 in third quarter revenue, marking the first time the company has exceeded half a million dollars in quarterly revenue. The company also gave guidance that its SG&A expenses should be lower during the second half of the year, which should translate to a strong top- and bottom-line growth rate.

"We followed our Q1 2015 record total revenue of $440,134 with a second straight $400,000+ quarter in Q2," said CFO Richard Thomley. "In line with previous guidance, we expect even stronger revenue growth in the second half of 2015. Based on shipments-to-date, purchase orders received, and serious indications to purchase, we believe that total revenue will exceed half a million dollars in Q3, strongly supported by continued growth in products and services revenue."

Looking Ahead

PBIO has a number of potential catalysts over the coming 18 months, in addition to the launch of its rape kit testing solution and a potential up-listing. These include an expected continuation of its ramping sales, plans to significantly increase its sales and marketing capabilities, and guidance that it expects to announce a co-marketing agreement with a major strategic partner before the end of 2015. All of this means that investors may want to keep a closer eye on the stock.

As a supplier to companies like Thermo Fischer Scientific (NYSE: TMO) and Amgen Inc. (NADSAQ: AMGN), the company's PCT Platform has built up a sizable presence within the large and growing protein research industry. The company's planned move into rape kit testing marks an ongoing expansion to service a wide number of testing providers with unique instrumentation, while investors benefit from the diversification across a number of different verticals.

The company's PCT Platform could apply to diagnostics across the spectrum, which means investors in diagnostics providers, like NeoGenomics Inc. (NASDAQ: NEO) and Enzo Biochem Inc. (NYSE: ENZ), may want to take a closer look at the stock for its growth potential and product breadth over the coming quarters.

For more information, visit the company's website at www.pressurebiosciences.com.

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SOURCE: Emerging Growth LLC