Strategic Collaboration Means Better Penetration in the Sample Preparation Market
Grant Zeng, CFA
On May 7, 2012, Pressure BioSciences, Inc. (PBIO) and LEAP Technologies signed a strategic co-development, co-marketing, and co-selling agreement. Pursuing to the agreement, the two companies plan to develop a next generation sample preparation system by combining PBIO’s pressure cycling technology (:PCT) platform with LEAP's proprietary robotics and lab automation equipment. The companies share an industry focus in proteomics sample preparation, primarily in mass spectrometry.
PBIO and LEAP believe that by combining the best attributes of both technology platforms, they can develop a sample preparation system superior in quality and robustness to current methods.
LEAP Technologies has been providing laboratory sample preparation automation equipment and support for over 20 years. LEAP's automation solutions allow the research scientist to walk away and run their samples unattended (such as overnight). The company is a key player in the robotics/lab automation area of the life sciences, especially in the mass spectrometry sample preparation workflow. They are already known and accepted by the key mass spectrometry companies, and by many mass spectrometry labs.
PBIO already has a foothold in the mass spectrometry sample preparation area, but the ability to build PCT into an automated workflow using LEAP's proprietary equipment and software should help PBIO increase its penetration in the mass spectrometry area, as well as in other areas of the sample preparation market.
LEAP has a much greater sales force than PBIO. This long term and mutually-beneficial relationship will increase sales for both companies in the future.
We are impressed by the business development progress the Company has made. PBIO recently launched aggressive commercialization initiatives for its PCT-based products. Within one year, management has established quite a few co-marketing or distribution agreements worldwide.
We think these distribution/collaboration agreements are important to PBIO and its investors. This is a cost-effective way to significantly increase PBIO’s market penetration and increase sales. We expect to see incremental sales results during the first half of 2012 and major impact in 2H2012 and beyond.
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