Protalix BioTherapeutics, a leading biopharmaceutical company specializing in the development, production, and commercialization of recombinant therapeutic proteins through its proprietary ProCellEx® plant cell-based protein expression system, disclosed its financial results for the third quarter (Q3) concluding on September 30, 2023. Subsequently, the stock of Protalix Bio Therapeutics has experienced a substantial decline.
At the time of this publication, Protalix Biotherapeutics In stock (PLX) has witnessed a decline.
Protalix Biotherapeutics Inc
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Protalix BioTherapeutics Q3 2023 financial Results
During the three-month period ending on September 30, 2023, the company achieved revenues totaling $10.2 million from the sale of goods, marking a notable 16% increase compared to the $8.8 million earned in the same period of 2022. This boost was primarily attributed to a $3.0 million surge in sales to Chiesi, post the FDA and EMA approvals of Elfabrio, and an additional $0.6 million from sales to Brazil. However, this was partly offset by a $2.2 million decrease in sales to Pfizer.
Conversely, revenues from license and R&D services saw a significant decline of 96%, plummeting from $5.4 million in the third quarter of 2022 to $0.2 million in the same period of 2023. These revenues predominantly stemmed from agreements with Chiesi, with sponsorship of extension studies being transferred to Chiesi as of March 1, 2023.
Cost of goods sold for the third quarter of 2023 amounted to $4.9 million, indicating a 31% decrease compared to the $7.1 million recorded in the same period of the previous year. This decline was primarily attributed to reduced sales to Pfizer, offset by an increase in sales of Elfabrio to Chiesi and Elelyso to Brazil.
Research and development expenses for the third quarter of 2023 totaled approximately $3.7 million, a stark 50% decrease from the approximately $7.4 million incurred in the same period of 2022. This reduction was primarily driven by the completion of the Fabry clinical program and the regulatory processes related to Elfabrio’s Biologics License Application (BLA) and Marketing Authorization Application (MAA) review.
Selling, general, and administrative expenses experienced a 32% increase, rising from $2.8 million in the third quarter of 2022 to $3.7 million in the same period of 2023. This uptick was primarily driven by a $0.6 million increase in salary and related expenses due to one-time cash bonuses, as well as an uptick in share-based compensation.
Financial income, net, amounted to $0.2 million for the third quarter of 2023, in contrast to the financial expenses, net, of $0.4 million recorded in the same period of 2022. This shift was primarily attributed to a $0.3 million increase in interest income.
The company reported income taxes of approximately $0.1 million in the third quarter of 2023, primarily due to the provision for current taxes under Section 174 of the U.S. Tax Cuts and Jobs Act, enacted in December 2017.
As of September 30, 2023, Protalix BioTherapeutics maintained cash, cash equivalents, and short-term bank deposits of approximately $41.0 million.
The net loss for the third quarter of 2023 amounted to approximately $1.9 million, translating to $0.03 per share (basic), and $0.04 per share (diluted). This marks a notable improvement compared to the net loss of $3.6 million, or $0.07 per share (basic and diluted), recorded in the corresponding period of 2022.
