PROTALIX BIOTHERAPEUTICS, INC. (PLX)

[pili2016]

Great Phase 2 results today. PLX investment strategy from seekeingalpha article on PLX....(A question that my readers ask me frequently is what I expect from PLX and what is my exit price (last comment)).

http://seekingalpha.com/article/4033076-protalix-biotherapeutics-receives-24m-order-well-funded-significant-upside

My exit price is at least $3 and I believe it will get there by mid year next year. At $3 fully diluted the market cap is "only" $360M. That is actually cheap for a biotec with a Phase 3 finalized and about to to get FDA approval (for its Fabry Disease ERT - http://bit.ly/2irgEtq).
Investors must visualize the journey that Protalix is about to enter in early 2017 and project what would happen in a year of two:

>>>> Here is what I think:

1) PLX reports positive Phase 2 Cystic Fibrosis results sometime this week. Done today 1/3/2017

https://finance.yahoo.com/news/protalix-biotherapeutics-announces-positive-interim-123000436.html

I believe many small-time traders will exit with a handsome 10 - 40% afyter the results are known. They might be happy temporarily, and they will not want to know what happened to PLX after they sold. But I believe they will regret much like many AMD investors who bought at $1.7 and might have sold it at $3.4 for a "nice" 100% gain a few weeks later. But if they held a few more months they could have sold it $12. OK, so let's say an investors bought 10K shares of AMD on January 20, 2016 and sold it at $3.4 on April 20, 2016 they made a "handsome" $17K profit...right? But if they sold in December 2016 at $12, they would have $120K on the $17.4K initial investment. But investors are not even that patient to hold until $3.4 and the majority would probably sell between $2.2 to $2.5.....Oh wow.....how smart they were right?.....Wrong, those who did that are probably kicking themselves in the nuts (excuse my French). We have a similar scenario with PLX.

2) The company will report full Phase 2 Cystic fibrosis results during 1Q 2017. With favorable results I believe the stock will be North of $1.5. I expect partnership announcement soon thereafter or perhaps even before that. Remember that AIR DNase is going after Genentech's Pulmozyme with yearly revenues of $700M at very high margins. A partnership announcement will lift the stock to the $2.5 territory.

3) As PLX keeps advancing its 3 fabulous clinical programs..(fabulous because they are unique....they've engineered those molecules to overcome the limitations of current treatments) and it starts increasing revenues sequentially from its sales to Brazil, the pps will solidify and the uptrend will be steady.

4) When PLC announces FDA approval for its Fabry drug in 2018 the stock will jump to $5 or higher because here they come their drugs for Cystic Fibrosis and Ulcerative Colitis with a combined $8B addressable market. And by that time who knows how many other molecules will be developed to address other unmet needs or to beat current treatment programs that only work so so because there is nothing better available.....until PLX engineered molecules beat the crap out of them.....excuse my French again...

So, in conclusion, with PLX its is a journey to higher grounds...they more patient you are the more you will make. A $10K investment today could turn into $250K within two years...where do you get those kinds of returns???

What gives me confidence to make the above projections is that I don't have to worry about equity raises anytime in the near future. With almost $80M in cash and revenues from its FDA approved drug (already announced sales to Brazil) the company has stated categorically that they are now well funded through the end of 2019.

Hold tight and enjoy the ride...:)