Breaking Down Protalix BioTherapeutics, Inc. (PLX) Financial Health: Key Insights for Investors

Are you keeping a close watch on Protalix BioTherapeutics, Inc. (PLX) and trying to decipher its financial standing? Did you know that in fiscal year 2024, they achieved a record revenue from goods sales, soaring to $53.0 million, a 31% increase from 2023? But how does this revenue growth translate into overall financial health, and what are the key factors driving these changes? Dive in to explore the details of Protalix's financial performance, including a net income of $2.9 million, the impact of strategic partnerships, and insights into their R&D and clinical developments.

Protalix BioTherapeutics, Inc. (PLX) Revenue Analysis

Analyzing Protalix BioTherapeutics, Inc. (PLX)'s revenue streams provides critical insights into the company's financial health and future prospects. Revenue streams are the various sources from which a company generates its income.

Protalix BioTherapeutics, Inc. (PLX) primarily generates revenue from the sales of its therapeutic proteins, particularly Elelyso, and from collaborations and licensing agreements with other pharmaceutical companies. Understanding the breakdown, growth, and contribution of these segments is crucial for investors.

Here's a breakdown of key aspects of Protalix BioTherapeutics, Inc. (PLX)’s revenue streams:

• Primary Revenue Sources: Primarily driven by sales of Elelyso (taliglucerase alfa), a recombinant glucocerebrosidase enzyme replacement therapy for the treatment of Gaucher disease. Additional revenue is derived from collaborations and licensing agreements.
• Year-over-Year Revenue Growth: Analyzing historical trends in revenue growth rates reveals the company’s ability to expand its market presence and capitalize on opportunities. Percentage increases or decreases provide insights into the effectiveness of sales and marketing strategies.
• Contribution of Business Segments: Evaluating the contribution of different segments, such as product sales versus collaboration revenues, helps identify key drivers of overall revenue. It also highlights the diversification (or lack thereof) in revenue generation.
• Significant Changes in Revenue Streams: Monitoring any notable shifts in revenue streams is essential. This includes the introduction of new products, changes in licensing agreements, or impacts from regulatory approvals.

For instance, any new partnerships or expanded indications for Elelyso could significantly alter revenue forecasts. Likewise, changes in reimbursement policies or competitive pressures could affect sales.

According to the Protalix BioTherapeutics, Inc. (PLX)’s report for the fiscal year ended December 31, 2023:

• Total revenues were $67.4 million, compared to $58.1 million for the year ended December 31, 2022.
• Product revenues totaled $22.3 million for the year ended December 31, 2023, an increase of approximately 24% compared to $18.0 million for the year ended December 31, 2022.
• Revenues from collaboration and licensing agreements were $45.1 million for the year ended December 31, 2023, compared to $40.1 million for the year ended December 31, 2022.

Here is a detailed revenue breakdown for Protalix BioTherapeutics, Inc. (PLX):

Understanding these revenue dynamics is essential for stakeholders to assess the financial stability and growth potential of the company. Investors should monitor these trends to make informed decisions about Protalix BioTherapeutics, Inc. (PLX).

More insights about the company are available here: Mission Statement, Vision, & Core Values of Protalix BioTherapeutics, Inc. (PLX).

Protalix BioTherapeutics, Inc. (PLX) Profitability Metrics

Assessing the financial health of Protalix BioTherapeutics, Inc. (PLX) requires a detailed look into its profitability metrics, which include gross profit, operating profit, and net profit margins. These metrics provide insights into how efficiently the company generates profit from its revenues and manages its expenses. Examining these figures over time helps to identify trends and assess the sustainability of the company’s profitability.

As of the fiscal year 2024, Protalix BioTherapeutics reported a gross profit of $37.24 million. This figure represents the revenue remaining after deducting the cost of goods sold (COGS), showcasing the company's efficiency in production and sourcing. To gain a deeper understanding of the company's operational performance, it's essential to consider the operating profit.

Operating profit provides a clearer picture of profitability by accounting for operational expenses. In 2024, Protalix BioTherapeutics reported an operating profit of $6.57 million. This indicates the company's ability to generate profit from its core business operations, excluding non-operating items like interest and taxes.

The net profit margin is a key indicator of overall profitability, reflecting the percentage of revenue that remains as net income after all expenses, including interest and taxes, are accounted for. For the fiscal year 2024, Protalix BioTherapeutics reported a net profit of $1.56 million. This metric is crucial for investors as it demonstrates the actual profitability of the company after all costs are considered.

Analyzing the trends in profitability over time offers valuable insights into the company's financial trajectory. Here’s a look at the company's financial performance from 2022-2024:

Comparing Protalix BioTherapeutics' profitability ratios with industry averages provides a benchmark for assessing its performance. This comparison helps investors understand whether the company is performing above or below industry standards.

Analysis of operational efficiency involves examining cost management strategies and gross margin trends. Effective cost management and increasing gross margins can significantly enhance profitability. For example, Protalix BioTherapeutics' gross margin in 2024 was approximately 71.47%, calculated as (Gross Profit / Total Revenue). This indicates strong efficiency in managing production costs.

Further insights into Protalix BioTherapeutics, Inc. (PLX) and its investors can be found here: Exploring Protalix BioTherapeutics, Inc. (PLX) Investor Profile: Who’s Buying and Why?

Protalix BioTherapeutics, Inc. (PLX) Debt vs. Equity Structure

Understanding how Protalix BioTherapeutics, Inc. (PLX) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity funding.

As of December 31, 2023, Protalix BioTherapeutics, Inc. (PLX) reported the following debt situation:

• Long-term debt: $23.6 million
• Short-term debt: $2.7 million

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. As of December 31, 2023, Protalix BioTherapeutics, Inc. (PLX) had a debt-to-equity ratio of 0.73. This ratio indicates the proportion of debt and equity the company uses to finance its assets. It's important to compare this ratio to industry standards to determine if Protalix BioTherapeutics, Inc. (PLX)'s leverage is within a reasonable range.

Protalix BioTherapeutics, Inc. (PLX) has strategically utilized debt financing alongside equity funding to support its operations and growth initiatives. Recent activities include:

• On February 28, 2023, Protalix BioTherapeutics, Inc. (PLX) entered into Amendment No. 2 to Loan Agreement and Limited Waiver with Kreos Capital VI (Expert Fund) Limited, increasing the term loan facility from $45 million to $55 million.
• The company often uses equity offerings to strengthen its financial position. For example, on November 9, 2023, they announced a public offering of ordinary shares and warrants, expecting gross proceeds of approximately $15.0 million.

Balancing debt and equity is crucial for Protalix BioTherapeutics, Inc. (PLX) to maintain financial stability and flexibility. While debt can provide capital for growth, excessive debt can increase financial risk. Equity funding, on the other hand, dilutes ownership but strengthens the balance sheet.

For further insights into Protalix BioTherapeutics, Inc. (PLX)'s financial health, you can read more here: Breaking Down Protalix BioTherapeutics, Inc. (PLX) Financial Health: Key Insights for Investors

Protalix BioTherapeutics, Inc. (PLX) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Protalix BioTherapeutics, Inc. (PLX), a biopharmaceutical company, these metrics provide insights into its financial stability and operational efficiency. Here's an overview of PLX's liquidity position:

Assessing Protalix BioTherapeutics, Inc.'s Liquidity

Several key financial ratios and statements help in evaluating Protalix BioTherapeutics, Inc.'s liquidity:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets. For Protalix BioTherapeutics, Inc., the current ratio for the most recent quarter (MRQ) is 2.34. For fiscal year 2024, the current ratio is 2.35. A current ratio above 1 indicates that the company has more current assets than current liabilities.
• Quick Ratio: Also known as the acid-test ratio, the quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Protalix BioTherapeutics, Inc.'s quick ratio for the MRQ is 1.49.

Analysis of Working Capital Trends

Working capital is the difference between a company's current assets and current liabilities. It represents the funds available for day-to-day operations. Effective management of working capital is crucial for maintaining liquidity. Some data indicates that working capital was $23.63 million in 2022. Analysis of working capital trends, especially working capital per revenue, provides insights into how efficiently Protalix BioTherapeutics, Inc. manages its short-term assets and liabilities to generate revenue.

Cash Flow Statements Overview

Cash flow statements provide a detailed look at all the cash inflows and outflows a company experiences during a reporting period, categorized into operating, investing, and financing activities.

• Operating Cash Flow: This indicates the cash a company generates from its core business operations. For the year 2024, Protalix BioTherapeutics, Inc.'s cash from operations was $8.67 million.
• Investing Cash Flow: This section reflects cash used for investments in assets. In 2024, Protalix BioTherapeutics, Inc. had a cash flow from investing of $4.22 million.
• Financing Cash Flow: This includes cash flow related to debt, equity, and dividends. Protalix BioTherapeutics, Inc.'s cash flow from financing activities for 2024 was -$16.79 million.

Potential Liquidity Concerns and Strengths

Based on the fiscal year 2024 financial results, Protalix BioTherapeutics, Inc. exhibits several strengths:

• Strong Cash Position: The company ended 2024 with $34.8 million in cash and equivalents.
• Debt Repayment: Full repayment of outstanding debt strengthens the balance sheet.
• Record Revenues: Revenues from goods sales reached a record $53.0 million in 2024, a 31% increase compared to 2023.

However, it's also important to note potential concerns:

• Financing Cash Flow: A negative financing cash flow of -$16.79 million in 2024 indicates that the company is primarily using cash for debt repayment and other financing activities.

For more detailed insights, you can refer to Breaking Down Protalix BioTherapeutics, Inc. (PLX) Financial Health: Key Insights for Investors.

Protalix BioTherapeutics, Inc. (PLX) Valuation Analysis

Determining whether Protalix BioTherapeutics, Inc. (PLX) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these aspects to provide a clearer picture for investors.

Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) Ratios:

• P/E Ratio: As of now, a current P/E ratio for Protalix BioTherapeutics, Inc. (PLX) isn't clearly available. Generally, a high P/E ratio suggests that investors expect higher earnings growth in the future compared to companies with lower P/E ratios.
• P/B Ratio: Similarly, current specific P/B ratio data for Protalix BioTherapeutics, Inc. (PLX) isn't readily accessible. The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio might indicate that the stock is undervalued.
• EV/EBITDA Ratio: Up-to-date EV/EBITDA ratio for Protalix BioTherapeutics, Inc. (PLX) isn't clearly stated. This ratio is used to assess the overall value of a company relative to its earnings before interest, taxes, depreciation, and amortization. A lower ratio could imply undervaluation.

Without specific current values for these ratios, it's challenging to definitively assess Protalix BioTherapeutics, Inc. (PLX)'s valuation using this method. Investors would typically compare these ratios to industry averages and historical data to form a more informed opinion.

Stock Price Trends Over the Last 12 Months (or Longer):

Assessing the stock price trends for Protalix BioTherapeutics, Inc. (PLX) over the past year provides insights into market sentiment and company performance. Recent data indicates:

• As of April 17, 2025, Protalix BioTherapeutics Inc. (PLX) shows a stock price of $4.99.
• The 52-week high is $6.80, while the 52-week low is $3.45.

This range indicates the volatility and potential trading opportunities within the year. Analyzing the trend within this range, whether the stock is consistently moving upwards or downwards, helps in understanding the market's prevailing sentiment.

Dividend Yield and Payout Ratios (If Applicable):

As of the latest information, Protalix BioTherapeutics, Inc. (PLX) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst Consensus on Stock Valuation:

Analyst ratings provide a summarized view of professional opinions on the stock's potential. Recent analyst ratings for Protalix BioTherapeutics, Inc. (PLX) include:

• As of April 2024, the consensus among analysts is to Buy Protalix BioTherapeutics.
• The average target price is around $14.50.

These ratings suggest that analysts generally have a positive outlook on the stock's future performance, anticipating a potential increase from its current trading price. The consensus is based on the data from 3 analysts. Keep in mind that analyst ratings are not definitive and should be considered as one factor among many in making investment decisions.

To gain more insight into who is investing in Protalix BioTherapeutics, Inc. (PLX) and the motivations behind their investment, check out: Exploring Protalix BioTherapeutics, Inc. (PLX) Investor Profile: Who’s Buying and Why?

Protalix BioTherapeutics, Inc. (PLX) Risk Factors

Protalix BioTherapeutics, Inc. (PLX) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market and regulatory pressures. Understanding these factors is crucial for investors assessing the company's stability and growth potential. For further insights, you might find this resource helpful: Breaking Down Protalix BioTherapeutics, Inc. (PLX) Financial Health: Key Insights for Investors.

One of the primary risks involves industry competition. The biopharmaceutical industry is intensely competitive, with numerous companies vying for market share. Protalix faces competition from both established pharmaceutical giants and emerging biotech firms, many of which have greater financial and technological resources. This competition can affect the pricing and market acceptance of Protalix's products, potentially reducing revenue and profitability.

Regulatory changes also pose a significant risk. The development, manufacturing, and marketing of biopharmaceuticals are heavily regulated by agencies such as the FDA in the United States and the EMA in Europe. Changes in regulatory requirements can increase the costs and time needed to bring new products to market, or even force the withdrawal of existing products. For example, new clinical trial requirements or stricter manufacturing standards could adversely affect Protalix's operations and financial results.

Market conditions represent another critical external risk. Economic downturns, shifts in healthcare policies, and changes in payer reimbursement models can all impact the demand for Protalix's products. Unfavorable market conditions can lead to decreased sales, increased pricing pressures, and reduced access to funding.

Operational risks include challenges related to manufacturing. Protalix relies on its proprietary plant cell-based protein expression system, known as ProCellEx, for the production of its drugs. Any disruption to this manufacturing process, whether due to technical issues, contamination, or supply chain problems, could lead to product shortages and lost revenue. Maintaining consistent product quality and scaling up production to meet demand are ongoing operational challenges.

Financial risks are also pertinent. Protalix needs to secure adequate funding to support its research and development activities, clinical trials, and commercialization efforts. The company may seek funding through a combination of revenue from product sales, partnerships, and debt or equity financing. However, there is no guarantee that Protalix will be able to obtain financing on favorable terms, or at all. Insufficient funding could delay or halt the development of new products and limit the company's growth prospects.

Strategic risks include the dependence on key partnerships. Protalix collaborates with other companies to develop and commercialize some of its products. For example, the company has a collaboration with Chiesi Farmaceutici S.p.A. for the development and commercialization of Elfabrio^®. If these partnerships are terminated or not successful, it could adversely affect Protalix's revenue and profitability.

Mitigation strategies include:

• Diversifying the product pipeline: Developing a range of products targeting different indications can reduce reliance on any single product.
• Strengthening manufacturing capabilities: Investing in robust manufacturing processes and quality control systems can minimize the risk of production disruptions.
• Expanding partnerships: Forming alliances with multiple partners can reduce dependence on any one relationship.
• Maintaining a strong balance sheet: Prudent financial management and access to diverse funding sources can ensure the company has sufficient capital to weather economic downturns and fund its growth initiatives.

Protalix BioTherapeutics, Inc. (PLX) Growth Opportunities

For Protalix BioTherapeutics, Inc. (PLX), several factors point toward potential future growth. These include product innovations, strategic market expansions, and key partnerships that leverage their competitive advantages.

Key growth drivers for Protalix BioTherapeutics, Inc. (PLX) include:

• Product Innovations: Continued investment in research and development to expand their pipeline of therapeutic proteins.
• Market Expansions: Targeting new geographic markets and patient populations to increase the reach of Elelyso and other potential products.
• Strategic Initiatives and Partnerships: Collaborations with other pharmaceutical companies or research institutions to develop and commercialize new therapies.

While specific revenue growth projections and earnings estimates are subject to market conditions and regulatory approvals, understanding Protalix BioTherapeutics, Inc. (PLX)'s strategic initiatives provides insight into their growth potential. Here's a look at some of their activities:

Protalix BioTherapeutics, Inc. (PLX) focuses on the following to drive future growth:

• Elelyso® (taliglucerase alfa): As a precedent, continued sales and market penetration of Elelyso remain crucial.
• Pipeline Development: Advancing other pipeline products through clinical trials, such as PRX-115 for the treatment of pulmonary diseases.
• Strategic Collaborations: Leveraging partnerships to expand their market reach and develop new therapies.

Protalix BioTherapeutics, Inc. (PLX) has several competitive advantages that position it for growth:

• Proprietary Technology: Their ProCellEx® platform for plant cell-based protein expression allows for efficient and cost-effective production of complex therapeutic proteins.
• Established Market Presence: A global presence in the Gaucher disease market with Elelyso provides a foundation for launching new products.
• Strategic Partnerships: Collaborations with major pharmaceutical companies can accelerate the development and commercialization of their products.

Interested in learning more about the investors behind Protalix BioTherapeutics, Inc. (PLX)? Read more here: Exploring Protalix BioTherapeutics, Inc. (PLX) Investor Profile: Who’s Buying and Why?