H.C. Wainwright lifts Protalix stock target to $15, maintains buy

Monday, H.C. Wainwright analysts increased their price target on Protalix BioTherapeutics (NYSE:PLX) stock to $15.00 from the previous $10.00 while continuing to recommend a Buy rating for the company. The stock has shown remarkable momentum, gaining over 130% in the past six months, with an InvestingPro overall financial health score of GREAT. The adjustment follows Protalix’s reported third-quarter 2024 revenues from selling goods, which amounted to $17.8 million. This represents a substantial increase of 75% compared to the $10.2 million reported in the same period the previous year.

The significant revenue growth primarily stems from an additional $6.8 million in sales to Chiesi Farmaceutici S.p.A. and an increase of $1.1 million in sales to Pfizer (NYSE:PFE), although not rated by the analyst. These gains were slightly offset by a $0.3 million decline in sales to Brazil. With trailing twelve-month revenues of $45.67 million and a healthy gross profit margin of 35.86%, Protalix’s key product, pegunigalsidase alfa-iwxj, sold under the brand name Elfabrio for the treatment of adult Fabry disease, has been approved in multiple countries and is being commercialized by Chiesi Global Rare Diseases, a division of the privately-held Chiesi Group.

Elfabrio is a PEGylated enzyme replacement therapy (ERT) expressed via plant cell culture, designed with a longer half-life to allow less frequent dosing and to potentially reduce the production of neutralizing antibodies. The analysts at H.C. Wainwright anticipate that Elfabrio will be aggressively marketed by Chiesi’s rare disease unit, contributing to Protalix’s growth.

H.C. Wainwright’s renewed confidence in Protalix is further bolstered by the company’s financial position, having repaid all its 7.50% senior secured convertible promissory notes in the previous year using cash on hand. Operating with a moderate debt-to-equity ratio of 0.18 and a strong current ratio of 1.98, Protalix maintains a solid balance sheet. The analysts suggest that the company is on track to potentially achieve sustainable profitability from this year onward, primarily due to the Elfabrio royalty stream. For deeper insights into Protalix’s growth potential and comprehensive financial analysis, visit InvestingPro, where you’ll find exclusive research reports and detailed metrics.

In other recent news, Protalix BioTherapeutics reported significant developments. The company demonstrated a substantial 75% increase in revenue in Q3 2024, reaching $17.8 million, largely due to increased sales to partners Chiesi and Pfizer. This growth was accompanied by a transition from a net loss to a net income of $3.2 million in the same quarter.

In addition to this positive financial performance, Protalix successfully repaid all debts, further strengthening its financial standing. On the product development front, the company completed Phase 1 trials of PRX-115 with encouraging results and plans to initiate a Phase 2 trial in the second half of 2025.

Protalix also amended its bylaws, impacting stockholder rights and meeting procedures. The amendments included an increase in the ownership threshold required for stockholders to call a special meeting and an extension of the time frame for setting a special meeting date.

No analyst upgrades or downgrades were reported for Protalix. However, the company’s robust financial health and promising pipeline developments were noted. These recent developments highlight Protalix BioTherapeutics’ strategic focus on addressing unmet medical needs and advancing its product candidates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.