2016 resultsNo doubt a loss of $110.7M is an eye popping - one that is not helped at all by a fall in revenues to $16M compared to $24M in 2015. But when you look at the accomplishments in 2016, the huge loss can be easily justified. They also explain why PLI is facing a transformative year in 2017.
What I am most impressed by is that out of $88M spent on R&D in 2016, the plasma protein division accounted for $74M. This is obviously explained by the investment in manufacturing capacity and readying of facilities to file BLAs for Pg and IVIG in 2017 and the commercial launch of Pg in 2017 and IVIG in 2018. There has also been a lot invested in preparing for the next round of INDs to be submitted for the other plasma proteins. This investment is critical to PLI becoming a revenue generating machine over the next 3-4 years, all of which will be greatly enhanced by the acquisition of TST and its facilities in Belleville.
Yesterday, we have seen the initial fruit of PLI's efforts to monetise its 4050 platform. I believe that there will be a lot more to come in this regard in 2017 both in terms of regional deals and the prospect of a major deal with Roche or another Big Pharma on IPF. We also can't forget the pediatric voucher that may be awarded by the FDA at the time of Pg approval later this Summer. The bottom line is that the huge investments and clinical progress made in 2016 are going to start to pay back big time for PLI shareholders, leading to a NASDAQ listing probably within the next 12-15 months.
Of course, at the opening, the market will focus on the $110M loss. Let's see what happens. I expect a sell off, encouraged by the shorts but I sense that their is going to be some buying strength kicking in probably after the conference call. Never a dull moment. But I am looking forward to seeing how 2017 plays out. I expect to see new sp highs by September.