The downtrend looks to continue for ProMetic Life Sciences inc.(TSE:PLI)(Pli.ca) they have reported their first quarter results for 2018 and it doesn’t look good. As of Wednesday evening the Q1 reports revenues of $4.3 Million compared to an estimated $5.6 Million and operating expenses of ~$30 Million (R&D $22.4MM, SG&A $7.6MM) above the ~$25.5 Million estimate (R&D ~$17.0MM, SG&A ~$8.4MM). At Htop StockWatch we think the more optimistic take away from this was ProMetic Life Sciences foretasted reduced cash burn, around 10-15% lower than the previous 2017 year. If all goes according to plan PLI will still more than likely need to find alternative sources of financing such as a non diluting financing deal / licencing deal.
Quite a few brokerage houses have be weighing in recently and over all it looks like its going to be a rough road back to previous highs. Royal Bank of Canada maintains their price target on ProMetic Life Sciences of C$2.00 as well as an “outperform” rating for the company from a research report April 2nd. CIBC reduced their price target on ProMetic Life Sciences from C$2.15 to C$0.60 in their research report on Monday April 2. Currently most popular Quantitative Reports including ours here at High Top hTop StockWatch have reported a fair value of ~$1.00 CAD.
With a large potential upside ProMetic Life Sciences PLI.TO / TSE:PLI could be a fantastic short and long term play. The responsibility is now on management to make sure everything falls into place and doesn’t just keep falling.
ProMetic Life Sciences Company Profile
Prometic Life Sciences Inc (ProMetic) is a Canada-based biopharmaceutical company. The Company has two segments: Small Molecule Therapeutics and Protein Technology. The Company offers its technology platform for large-scale drug purification of biologics, drug development, proteomics and the elimination of pathogens to various industries, and uses its own affinity technology that provides for extraction and purification of therapeutic proteins from human plasma in order to develop therapeutics and orphan drugs.
** We are currently long TSE:PLI but as always the opinions stated are that just opinions, you make and are responsible for your choices and investments, good luck!