Protalix's Sales Growth and Promising Pipeline Justify Buy Rating and $15 Price Target.

Protalix's strong sales performance and promising pipeline, including its enzyme replacement therapy Elfabrio for Fabry disease and PRX-115 for uncontrolled gout, justify a Buy rating and $15 price target. Analyst Ram Selvaraju notes significant revenue from Elfabrio and positive Phase 1 trial results for PRX-115. The growing market for enzyme replacement therapies positions Protalix for substantial future growth.

Protalix BioTherapeutics (PLX) reported robust financial performance in its second quarter of 2025, with revenues from product sales growing 16% year-over-year to $15.4 million, modestly exceeding analyst expectations [1]. Despite a miss on GAAP earnings per share (EPS) due to increased research and development (R&D) spending, the company demonstrated strong commercial traction and profitability. This performance is driven by the growing market for enzyme replacement therapies and the company's strategic focus on its pipeline, particularly its enzyme replacement therapy Elfabrio for Fabry disease and its biologic candidate PRX-115 for uncontrolled gout.

Key highlights from the quarter include a substantial increase in Elfabrio enzyme therapy shipments, led by a $8.0 million growth in sales to Chiesi, Protalix's global commercialization partner for Elfabrio. This robust early demand highlights the successful commercial execution of the therapy. The company also reported a 38% drop in cost of goods sold, driven by reduced sales to lower-margin legacy markets. Despite a decline in sales to Brazil and Pfizer, overall goods revenue from commercial products increased by 16% year-over-year, underscoring the growing importance of Elfabrio to the business.

Protalix's R&D spending jumped to $6.0 million, a 100% increase from the prior-year period, primarily due to preparations for a phase II clinical trial of PRX-115. This biologic drug candidate aims to address a form of gout that does not respond to typical therapies, opening up a valuable new indication. The company's pipeline progress, including the initiation of the PRX-115 phase II clinical trial, reflects its strategy of expanding its therapeutic reach over time.

Looking ahead, Protalix expects Elfabrio royalties to exceed $100 million by 2030, based on the projected 15% to 20% market share of the estimated $3.2 billion Fabry total market [2]. The company also anticipates significant milestone-related revenues from its strategic collaboration with Chiesi, with up to $75 million in potential payments depending on regulatory achievements.

Analyst Ram Selvaraju notes that Protalix's strong sales performance and promising pipeline justify a Buy rating and a $15 price target. The growing market for enzyme replacement therapies positions Protalix for substantial future growth. Investors should closely monitor the company's pipeline progress, regulatory milestones, and sales execution in the coming quarters.

References:
[1] https://www.nasdaq.com/articles/protalix-revenue-jumps-16-percent-q2
[2] https://seekingalpha.com/news/4485575-protalix-signals-100m-elfabrio-royalties-by-2030-as-phase-ii-prxminus-115-trial-advances