Pluristem Therapeutics Inc.
) recently reported a net loss of 38 cents in fiscal 2013 (ended
Jun 30, 2013) wider than both the Zacks Consensus Estimate and
the year-ago loss of 34 cents.
Revenues of $0.7 million in fiscal 2013 were down 5% from a
year ago and short of the Zacks Consensus Estimate of $1
The revenues were derived from the company's agreement with
). The decline in revenues was due to the re-evaluation of the
development period under the agreement with United
Research and development expenses (net) increased 88% to $17.2
million, due to the increase in the company's clinical trials
expenses, salaries, full form materials expenses and consultants
and subcontractor expenses. General and administrative expenses
decreased by 14% to $5.6 million.
We note that Pluristem develops placenta-based cell therapies
in collaboration with companies like United Therapeutics or
through research and clinical institutions.
The cells from placenta are derived using the company's
proprietary PluriX therapy. PLX-PAD, Pluristem's first candidate
in development, is intended to treat peripheral artery disease
Meanwhile, the United States Patent and Trademark Office
granted Pluristem an important patent (U.S. Patent 8,529,888) for
methods used in the treatment of PAD.
The patent is expected to expire in 2028. The company is also
evaluating PLX-PAD for the treatment of Intermittent Claudication
(IC) and Buerger's disease.
We remind investors that Pluristem received a major setback in
Jun 2013 when the U.S. Food and Drug Administration placed a
clinical hold on a phase II IC study following a serious allergic
reaction in one of the patients who required subsequent
The news of clinical hold continues to loom large on
Pluristem's stock price.
Pluristem currently carries a Zacks Rank #3 (Hold). Right now,
Biogen Idec Inc.
) looks well placed with a Zacks Rank #1 (Strong Buy).
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