Pressure BioSciences Inc (OTCMKTS:PBIO) said Thursday that its second quarter saw strong consumables sales and serious momentum from the launch of its water-soluble CBD manufacturing system.
In a statement accompanying the company’s latest numbers, Pressure BioSciences CEO Richard Schumacher said, “Due to the poor water solubility of today’s oil-based CBD products, most ingested CBD is flushed from the body, leaving little of the product to provide its beneficial properties.
“After much diligence and analysis, we concluded that we have the expertise and experience to successfully address this critical issue. Consequently, we pulled significant hours away from many of our staff over the past few months and had them focus on the development of an instrument system — based on our patented UST platform — that would increase the water solubility, and thus the absorption, of CBD Oil. We succeeded; the result of that success is the BaroShear K45 processing system.”
The current absorption rate for orally consumed CBD is typically below 10%, but the company said the BaroShear K45 system could deliver up to a 90% rate.
Schumacher said the company expects demand for the system to grow.
“The CBD market is expected to hit $20 billion by 2024. There are currently hundreds upon hundreds of companies in this field. To survive, companies will need to differentiate themselves from the competition by delivering the highest quality products possible. Such products would undoubtedly need to have high water-solubility, absorption, and bioavailability. This is exactly what we intend to deliver.”
Schumacher concluded: “We have already begun to pre-sell limited quantities of the BaroShear K45. Units sold over the coming weeks will be delivered and installed in early 2020. We believe that such sales will have a significant impact on 2020 total revenue, potentially resulting in more than twice the total revenue of 2019.”
For the quarter ended June 30, the Pressure Bio’s revenue declined 19% to $518,700, compared to $638,800 for the same period in the previous year. Sales of consumables shot up 43% to $91,400 in the second quarter, compared to $64,100 in the same period in the previous year.
“We believe that revenue from our BaroFold platform contract services will continue to increase, and that the decline in PCT platform instrument sales observed over the past two quarters caused in part by our focus on the development of the BaroShear K45 will end, and that we will see an increase in PCT product sales over the second half of 2019,” said Schumacher.
Pressure BioScience's shares closed at $2.25 on Thursday.
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