PURE Bioscience develops and commercializes bioscience technologies. The company's flagship bioscience technology is an aqueous antimicrobial called silver dihydrogen citrate (SDC). Of the two analysts covering the stock, 50% recommend a buy while the remaining rate holding. As per the consensus estimates of analysts polled by Bloomberg, the stock has an implied upside of 161.2% and is currently trading at $2.01.
Richmont Sciences, PURE's marketing agent, has secured a 10-year, $144 million supply contract from High Scope, a Middle East distributor. The deal's major objective is to bring SDC-based water treatment to the nine Middle East countries. A $355,000 worth product shipment, initially to be used in Dubai as a short trial, launched the 10-year commitment. Meanwhile, High Scope has agreed to buy a minimum $9 million worth SDC in 2011 with annual purchases increasing to $21 million during the tenth year.
The U.S Environmental Protection Agency has approved Pure's SDC as a food-contact surface sanitizer, which opens up new markets. To reduce the threat of bacterial contamination of poultry products, the company is working closely with food microbiologists for testing SDC as a carcass wash. The poultry sector presents a robust growth opportunity and PURE is due to conduct a large study at the University of Georgia, which maintains a facility of almost 9 million chickens.Griffin Securities estimates the company reporting revenue of $1.9 million in the household product line, $752,000 in personal care and $500,000 in agriculture. Heading into 2012, revenue from these segments is likely to increase more than 90% from the 2011 levels.