Protalix BioTherapeutics, Inc.

Protalix BioTherapeutics, Inc. (NYSE: PLX) is a biopharmaceutical firm engaged in developing and commercializing recombinant therapeutic proteins through its proprietary plant cell–based production platform, ProCellEx®. Alongside its approved therapies, the company is progressing a clinical pipeline that includes PRX-115, a PEGylated uricase candidate for uncontrolled gout, PRX-119, a long-acting DNase I program targeting NETs-related conditions, and several additional proprietary technologies and early-stage development assets.

As per US Inflation Report published on ‘PLX’ on Jan 09,2026, Kalkine provided an ‘Buy’ stance on the stock at USD 2.00 based on fundamental analysis and the stock price has now moved up by ~ 31.00% since then.

Noted below are the details of support and resistance levels provided in our previous report:

Rationale:

• Earnings Normalisation After Strong YTD Growth: Nine-month revenues rose ~24% YoY to USD 43.6 million, while the third quarter itself was largely flat YoY, indicating a moderation in growth momentum after a strong first half and a shift from acceleration to normalisation.
• Quarterly Performance Skewed by Timing Effects: Management explicitly highlighted that quarterly revenues fluctuate based on partner inventory decisions (Chiesi, Pfizer, Fiocruz), suggesting limited near-term visibility and potential volatility despite healthy full-period numbers.
• R&D Intensity Rising Ahead of Revenue Inflection: R&D expenses increased ~58% YoY for the nine months, driven primarily by preparations for Phase 2 of PRX-115, raising the cost base ahead of any corresponding clinical or commercial monetisation.
• Cash Burn Re-emerges Despite Accounting Profitability: Operating cash flow turned materially negative (-USD 14.0 million for nine months FY25), reflecting working capital absorption and elevated spending, even as reported losses narrowed versus the prior year.
• Balance Sheet Strength Supported by Equity Issuance: Equity increased partly due to ATM issuances and option exercises during FY25, indicating reliance on capital markets alongside internal cash generation to fund operations and pipeline advancement.
• Concentration on a Limited Commercial Portfolio: The bulk of revenues continue to be derived from two approved therapies (Elfabrio and Elelyso), with future growth dependent on lifecycle extensions and regulatory outcomes rather than diversification in near-term revenue streams.
• Regulatory Overhang in Key Growth Opportunity: The EMA’s negative opinion on the proposed alternative Elfabrio dosing regimen introduces uncertainty around expansion potential, despite re-examination efforts, tempering near-term upside expectations.
• Valuation Sensitivity to Development Milestones: With PRX-115 still in early-to-mid clinical stages, incremental progress is increasingly milestone-driven, making performance more sensitive to trial outcomes rather than steady operating leverage.

Valuation (Using P/E Multiple)

Share Price Chart

Conclusion

Despite solid year-to-date revenue growth, performance has begun to normalise on a quarterly basis amid partner-driven ordering volatility, while operating cash flows have turned materially negative as rising R&D intensity accelerates ahead of any near-term monetisation from the clinical pipeline. The business remains heavily concentrated in a limited set of commercial products, with incremental upside constrained by regulatory uncertainty around dosing expansion for Elfabrio and increasing dependence on development milestones for PRX-115. At the same time, balance sheet strength has been partially supported through equity issuances rather than internally generated cash, underscoring a risk-reward profile that appears less compelling following the recent earnings recovery.

With revenue momentum flattening on a quarterly basis, operating cash flows turning negative amid rising R&D intensity, growth increasingly reliant on clinical milestones, regulatory uncertainty constraining near-term upside, and liquidity supported partly through equity issuance, a "Sell" recommendation on Protalix BioTherapeutics, Inc. (NYSE: PLX) has been given at the current market price of USD 2.62 as on 02 February 2026 at 8:25 am PST.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 02 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.