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AndrewGreenBull (96.16)

Protalix BioTherapeutics Inc sends out a profit taking signal

Recs

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February 24, 2011 – Comments (1) | RELATED TICKERS: PLX , GENZ.DL , SHPG

Protalix BioTherapeutics Inc  (PLX ) has only 40M in cash according to last 10Q. 730M market cap for a company without a drug on the market looks not that solid.

PLX will have the FDA decision tomorrow (02/25/2011). Risk/return ratio looks attractive: could be down to $3 if rejected and maybe up to $10 temporarily if it got approved.

Direct public offering is a sure thing and we will see dilution in the near term. Even if it got approval tomorrow, the current price is more than price in, in my opinion.

PLX’s Uplyso will compete with Genzyme’s (GENZ) Cerezyme and   Shire's (SHPGY)  Vpriv in the market of Gaucher’s disease treatment. Only 1 out of 100,000 may have the chance to get Gaucher’s disease. I doubt the profit potential in this small market.

We have seen dramatic insiders and institutional selling: Phillip Frost, Chairman of Teva Pharmaceutical Industries Ltd sold most of the shares he owned in PLX, and mutual fund giant Fidelity reported that in the quarter ended in December it sold 1.8 million shares out of the 2.9 million that it owned.

The sell signal for PLX is obvious from any angle.

Disclaimer: The author is not a licensed analyst and the purpose of his posts is NOT recommendation for any stock buying and selling activity but information sharing and discussion only.  Please do your own due diligence before making any trading decision.

1 Comments – Post Your Own

#1) On February 25, 2011 at 8:36 AM, AndrewGreenBull (96.16) wrote:

PLX received CRL, $6.30 premarket, still have some room to squeeze.

Thanks for the rec!

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