Is Pluristem Therapeutics (PSTI) Stock a Good Buy?

Pluristem Therapeutics Inc. (NASDAQ: PSTI) is screaming for the top in the market this morning, and for good reason. The company announced a landmark collaboration agreement with the largest food producer in Israel. Here’s the scoop:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

PSTI Announces Landmark Collaboration

As mentioned above, Pluristem is having a great day in the market today after announcing that it has entered into a landmark agreement with the largest food producers in Israel, Tnuva Group. The collaboration will center around the development, manufacture, and commercialization of cultured cell-based products for the food industry. 

In the release, PSTI went on to say that the collaboration starts with the incorporation of a new company that will receive exclusive, global, royalty bearing licensing rights to use Pluristem’s proprietary technology, intellectual property, and knowhow, all of which will be used in the field of cultured meat. 

As part of the agreement, Tnuva Group will invest $7.5 million in the new company based on a pre-money valuation of $40 Million. Tnuva will also have the option to invest up to an additional $7.5 million over a period of 12 months following the closing of the deal. 

Of course, PSTI said that it will support the establishment, research and development activities of the new company as part of a services agreement while Tnuva will provide the R&D platform to develop consumer products. Moreover, Tnuva will receive preferred marketing rights of any products developed by the new company in Israel. 

While the new company will focused on cultured meat in the beginning, the parties may expand the collaboration to include cultured dairy and fish products in the future. 

A Perfect Partnership for PSTI

Pluristem’s claim to fame is its ability to design, develop, and manufacture cells for commercial use. The company has expanded its processes and has the ability to cost-effectively produce high-quality cells with batch-to-batch consistency. 

The cells the company is able to create have the potential to change the game in the cultured meat space. In fact, the two companies expect to present a Proof of Concept in 2022 with the goal of launching its first raw cultured meat product in 2023. 

Management Commentary

In a statement, Haim Gavrieli, Chairman of Tnuva Group, had the following to offer:

“Our collaboration with Pluristem is part of the execution of Tnuva Group’s strategy and vision. Tnuva strives to lead the alternative protein industry in Israel and to continue to expand in the industry on a global scale. We chose to collaborate with Pluristem because we believe it owns one of the most advanced cell production technologies in the world. We expect the collaboration between the companies to revolutionize the cultured food industry and develop the next generation of alternative proteins.”

The above statement was followed up by Zami Aberman, Chairman at PSTI, with:

“Both Parties are leading companies in their fields, each with proven experience and tremendous capabilities, and the collaboration between us holds vast potential to lead towards a better future for the food industry. The collaboration with Tnuva supports Pluristem’s strategy to establish partnerships that leverage its cell-based technology platform. As we embark on this collaboration with Tnuva, Pluristem is still dedicated to its core business of developing cell therapy products.”

Yaky Yanay, CEO & President at PSTI said:

“Over the years, Pluristem has developed one of the most advanced cell manufacturing platforms. During the last year, we made our strategy more precise, with the goal of leveraging our technology and expertise through partnerships and collaborations. Today, we are proud to join forces with a market leader, Tnuva Group, as they bring 96 years of experience in consumer food brands and innovation to the table. We believe that Tnuva’s and Pluristem’s vast experience will support fast and effective development of large-scale cultured meat products, relying on our existing infrastructures and talented teams. This collaboration is the first showcase of Pluristem’s intention to expand its business to verticals that need superior cell expansion proprietary technologies.”

Finally, Eyal Malis, CEO at Tnuva Group had the following to offer:

“Tnuva Group has decades of experience developing and marketing innovative products for the Israeli market. Tnuva leads the alternative protein market in Israel and has recently taken its expertise globally. Just as Tnuva made the field of alternative proteins accessible to every Israeli home, we intend to make cultured food products available to all. The collaboration between two proven pioneers in their fields, each of which with proven experience and tremendous abilities, can create a better future for the food industry.”

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

The Bottom Line

The bottom line here is simple, Pluristem is embarking on an adventure that has the potential to generate significant revenues in the near future. In fact, alternative meat is one of the fastest growing industries in the world, one that’s expected to be a $140 billion market relatively soon. If the two can generate high-quality, mast-produced, cultured meat products, they have the potential to generate incredible growth ahead. 

Don't Miss the Next Big Story

Join our free mailing list below to receive real-time, actionable alerts!