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PLX
PROTALIX BIOTHERAPEUTICS, INC.
false
Accelerated Filer
Q2
2012
10-Q
2012-06-30
0001006281
--12-31
<div style="FONT: 10pt Times New Roman, Times, Serif">
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.5in"></td>
<td style="WIDTH: 0.25in"><b>b.</b></td>
<td style="PADDING-RIGHT: 81.35pt"><b>Basis of
Presentation</b></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
The accompanying unaudited condensed consolidated financial
statements of the Company have been prepared in accordance with
accounting principles generally accepted in the United States
(<font style="TEXT-TRANSFORM: uppercase">"</font>GAAP<font style="TEXT-TRANSFORM: uppercase">"</font>) for interim financial
information. Accordingly, they do not include all of the
information and notes required by GAAP for annual financial
statements. In the opinion of management, all adjustments (of a
normal recurring nature) considered necessary for a fair statement
of the results for the interim periods presented have been
included. Operating results for the interim period are not
necessarily indicative of the results that may be expected for the
full year.</p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
These unaudited condensed consolidated financial statements should
be read in conjunction with the audited consolidated financial
statements in the Annual Report on Form 10-K for the year ended
December 31, 2011, filed by the Company with the Securities and
Exchange Commission. The comparative balance sheet at December 31,
2011 has been derived from the audited financial statements at that
date.</p>
</div>
<div style="FONT: 10pt Times New Roman, Times, Serif">
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"><b>NOTE
3 - STOCK TRANSACTIONS</b></p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 49.65pt"></td>
<td style="WIDTH: 21.25pt"><b>a.</b></td>
<td><font style="COLOR: black">On February 22, 2012, the
Company issued and sold 5,175,000 shares of Common Stock in an
underwritten public offering at a price to the public of $5.25 per
share. The net proceeds to the Company were approximately
$25,388,000 (net of underwriting commissions and issuance
costs of approximately $1,780,000).</font></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 49.65pt"></td>
<td style="WIDTH: 21.25pt"><b>b.</b></td>
<td>During the six months ended June 30, 2012, the Company issued a
total of 1,117,249 shares of Common Stock in connection with the
exercise of a total of 1,117,249 options by certain officers and
employees of the Company. The Company received aggregate cash
proceeds equal to approximately $1,055,000 in connection with such
exercises.</td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<table style="MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0">
<tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top">
<td style="WIDTH: 49.65pt"></td>
<td style="TEXT-ALIGN: left; WIDTH: 21.25pt"><b>c.</b></td>
<td style="TEXT-ALIGN: justify">Following FDA <font style="FONT: 10pt Times New Roman, Times, Serif">approval of
taliglucerase alfa on May 1, 2012<font style="COLOR: black">, the
Company started recognizing compensation costs in relation to
performance-based awards that were granted in February 2010 to
certain officers and employees of the Company which vest over a
three-year period commencing upon the FDA's approval of</font>
taliglucerase alfa<font style="COLOR: black">. During the second
quarter of 2012, the Company recorded an expense in the amount of
approximately $3.5 million for the cumulative period from the date
of grant.</font></font></td>
</tr>
</table>
</div>
3555000
3759000
3759000
0.04
2128000
<div style="FONT: 10pt Times New Roman, Times, Serif">
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"><b>NOTE
1 - SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.5in"></td>
<td style="WIDTH: 0.5in"><b>a.</b></td>
<td><b>General</b></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.75in"></td>
<td style="WIDTH: 0.25in"><b>1.</b></td>
<td>Operation</td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
Protalix BioTherapeutics, Inc. (collectively with its subsidiaries,
the "Company"), and its wholly-owned subsidiary, Protalix Ltd., are
biopharmaceutical companies focused on the development and
commercialization of recombinant therapeutic proteins based on the
Company’s proprietary ProCellEx<sup>®</sup> protein
expression system ("ProCellEx"). In September 2009, Protalix Ltd.
formed another wholly-owned subsidiary under the laws of the
Netherlands, Protalix B.V., in connection with the European
Medicines Agency ("EMA") application process in the European Union.
The Company’s two subsidiaries are referred to collectively
herein as the "Subsidiaries."</p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
On May 1, 2012, the U.S. Food and Drug Administration (<font style="TEXT-TRANSFORM: uppercase">"</font>FDA<font style="TEXT-TRANSFORM: uppercase">"</font>) approved taliglucerase alfa
for injection, the Company’s first approved drug product, as
an enzyme replacement therapy (ERT) for the long-term treatment of
adult patients with a confirmed diagnosis of type 1 Gaucher
disease. Taliglucerase alfa is a proprietary, recombinant form of
glucocerebrosidase (GCD) that the Company developed using
ProCellEx. Taliglucerase alfa is the first FDA-approved plant
cell-based recombinant therapeutic protein.</p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
Taliglucerase alfa is being marketed in the United States under the
brand name ELELYSO™ by Pfizer Inc. (<font style="TEXT-TRANSFORM: uppercase">"</font>Pfizer<font style="TEXT-TRANSFORM: uppercase">"</font>), the Company's
commercialization partner, as provided in the exclusive license and
supply agreement by and between Protalix Ltd. and Pfizer (the
<font style="TEXT-TRANSFORM: uppercase">"</font>Pfizer
Agreement<font style="TEXT-TRANSFORM: uppercase">"</font>).
Protalix Ltd. granted Pfizer an exclusive, worldwide license to
develop and commercialize taliglucerase alfa under the Pfizer
Agreement, but retained those rights in Israel. The Company has
agreed to a specific allocation between Protalix Ltd. and Pfizer
regarding the responsibilities for the continued development
efforts for taliglucerase alfa. To date, the Company has received
an upfront payment of $60.0 million in connection with the
execution of the Pfizer Agreement and shortly thereafter an
additional $5.0 million clinical development-related milestone
payment. The Company received an additional $25.0 million milestone
payment in connection with the FDA's approval of taliglucerase alfa
in the United States, which are recorded as revenues during the
current period. The agreement provides that the Company share with
Pfizer the net profits or loss related to the development and
commercialization of taliglucerase alfa on a 40% and 60% basis,
respectively, except with respect to the profits and losses related
to commercialization efforts in Israel. <font style="COLOR: black">In calculating the net profits under the agreement,
there are certain agreed upon limits on the amounts that may be
deducted from gross sales for certain expenses and costs of goods
sold</font>.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
The Company is cooperating with Pfizer to obtain marketing approval
for taligulcerase alfa in additional countries and jurisdictions.
Currently, marketing authorization applications have been filed for
the European Union, Israel, Brazil and Australia. In June 2012, the
EMA's Committee for Medicinal Products for Human Use (CHMP) adopted
an opinion recommending against the marketing authorization of
taliglucerase alfa in the European Union. While the CHMP gave a
positive risk-benefit assessment for taliglucerase alfa, its
recommendation was based solely on the orphan market exclusivity
granted to VPRIV<sup>®</sup>, Shire plc's Gaucher disease
treatment. It was not based on the safety and efficacy profile of
taliglucerase alfa. The Company and Pfizer are currently working
together, along with other interested parties, to determine the
next steps regarding the CHMP opinion.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
In addition to taliglucerase alfa, the Company is developing
certain other products using ProCellEx.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"></p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
Currently, patients are being treated with taliglucerase alfa on a
commercial basis in the United States, and, both within and outside
of the United States, through the Company's clinical trials and
related studies, compassionate use programs, special access
agreements, named patient provisions and other programs designed to
ensure that treatments are available to Gaucher patients in light
of recent shortages of approved treatments. In July 2009, following
a request by the FDA, the Company submitted a treatment protocol to
the FDA in order to address an expected shortage of the current
enzyme replacement therapy approved for Gaucher disease. The
treatment protocol was approved by the FDA in August 2009, and the
Company is continuing to treat patients in the United States under
this protocol as it winds down with patients being moved to
commercial treatment with Elelyso. On July 13, 2010, the Company
announced that the French regulatory authority had granted an
Autorisation Temporaire d'Utilisation (ATU), or Temporary
Authorization for Use, for taliglucerase alfa for the treatment of
Gaucher disease. An ATU is the regulatory mechanism used by the
French Health Products and Safety Agency to make non-approved drugs
available to patients in France when a genuine public health need
exists. This ATU allows Gaucher patients in France to receive
treatment with taliglucerase alfa before marketing authorization
for the product is granted in the European Union. Payment for
taliglucerase alfa has been secured through government allocations
to hospitals. In addition to the United States and France,
taliglucerase alfa is currently being provided to Gaucher patients
under special access agreements or named patient provisions in
Brazil and in other countries.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
On August 10, 2010, Pfizer entered into a short-term supply
agreement with the Ministry of Health of Brazil pursuant to which
the Company and Pfizer have provided taliglucerase alfa to the
Brazilian Ministry of Health for the treatment of Gaucher patients.
During the remainder of 2010 and the first quarter of 2011, the
Company and Pfizer completed the supply of products deliverable
under the short-term supply agreement. During 2011, Pfizer recorded
an allowance for sales returns in connection with the supply
agreement because the Brazilian Ministry of Health requested that
Pfizer consider the replacement of certain vials that might expire
during 2012. Revenue, net of allowance for sales returns, generated
from the Brazilian Ministry of Health was recorded by Pfizer, and
the Company recorded its share of such revenues in accordance with
the terms and conditions of the Pfizer Agreement.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.75in"></td>
<td style="WIDTH: 0.25in"><b>2.</b></td>
<td>Liquidity and Financial Resources</td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
In addition to the FDA approval, successful completion of the
Company’s development programs and its transition to normal
operations is dependent upon obtaining the foreign regulatory
approvals required to sell its products internationally. In
accordance with the terms and conditions of the Pfizer Agreement,
the Company received a $25.0 million milestone payment in
connection with the FDA's approval of taliglucerase alfa in the
United States. In addition, the Company is eligible to receive
potential milestone payments equal to $25.0 million, in the
aggregate, for matters relating to the successful achievement of
regulatory approval of taliglucerase alfa in the European Union.
Notwithstanding the FDA's approval of taliglucerase alfa, there can
be no assurance that the Company will receive regulatory approval
of taliglucerase alfa in the European Union or any other
jurisdiction, nor is there any assurance that the Company will
receive regulatory approval of any of its other product candidates,
and a substantial amount of time may pass before the Company
achieves a level of revenues adequate to support its operations, if
at all. The Company also expects to incur substantial expenditures
in connection with the regulatory approval process for each of its
product candidates during their respective developmental periods.
Obtaining marketing approval with respect to any product candidate
is directly dependent on the Company’s ability to implement
the necessary regulatory steps required to obtain such approval in
the United States and in other countries. The Company cannot
reasonably predict the outcome of these activities.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="TEXT-ALIGN: left; MARGIN-TOP: 0px; TEXT-INDENT: 0in; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0.75in">
Based on its current cash resources and commitments, the Company
believes it will be able to maintain its current planned
development activities and the corresponding level of expenditures
for at least the next 12 months, although no assurance can be given
that it will not need additional funds prior to such time. If there
are unexpected increases in general and administrative expenses or
research and development expenses, the Company may need to seek
additional financing during the next 12 months.</p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.5in"></td>
<td style="WIDTH: 0.25in"><b>b.</b></td>
<td style="PADDING-RIGHT: 81.35pt"><b>Basis of
Presentation</b></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
The accompanying unaudited condensed consolidated financial
statements of the Company have been prepared in accordance with
accounting principles generally accepted in the United States
(<font style="TEXT-TRANSFORM: uppercase">"</font>GAAP<font style="TEXT-TRANSFORM: uppercase">"</font>) for interim financial
information. Accordingly, they do not include all of the
information and notes required by GAAP for annual financial
statements. In the opinion of management, all adjustments (of a
normal recurring nature) considered necessary for a fair statement
of the results for the interim periods presented have been
included. Operating results for the interim period are not
necessarily indicative of the results that may be expected for the
full year.</p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
These unaudited condensed consolidated financial statements should
be read in conjunction with the audited consolidated financial
statements in the Annual Report on Form 10-K for the year ended
December 31, 2011, filed by the Company with the Securities and
Exchange Commission. The comparative balance sheet at December 31,
2011 has been derived from the audited financial statements at that
date.</p>
<p style="MARGIN: 0pt 0px 0pt 56.7pt; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 36pt"></td>
<td style="WIDTH: 17.85pt"><b>c.</b></td>
<td style="PADDING-RIGHT: 81.35pt"><b>Earnings (loss) per
share</b></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Basic earnings (loss) per share are calculated by dividing the net
profit (loss) by the weighted average number of shares of the
Company's common stock, par value $0.001 (the "Common Stock"),
outstanding during each period.</p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Diluted earnings per share are calculated by dividing the net
profit by the weighted-average number of shares of common stock
outstanding during each period increased to include the number of
additional shares of common stock that would have been outstanding
if the potentially dilutive shares had been issued. Potentially
dilutive shares include outstanding stock options granted to
employees and non-employees.</p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
The weighted average number of shares outstanding used to calculate
earnings (loss) per share were as follows:</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="right">
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="6">Six Months Ended</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="6">Three Months Ended</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2012</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2011</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2012</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2011</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.45pt; PADDING-LEFT: 18.05pt; WIDTH: 34%; FONT-SIZE: 10pt">
Weighted average common shares outstanding for basic
calculation</td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
89,702,496</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
83,686,094</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
91,526,224</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
85,579,534</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.3pt; PADDING-LEFT: 0.25in; FONT-SIZE: 10pt">
Weighted average dilutive effect of stock options</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
2,967,537</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
3,354,943</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.45pt; PADDING-LEFT: 18.05pt; FONT-SIZE: 10pt">
Weighted average common shares outstanding for diluted
calculation</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
92,670,033</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
83,686,094</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
94,881,167</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
85,579,534</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; TEXT-INDENT: -17.3pt; PADDING-LEFT: 0.25in; FONT-SIZE: 10pt">
 </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
</tr>
</table>
<br style="CLEAR: both" />
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Diluted earnings (loss) per share do not include options of the
Company in the amount of 7,537,094 and 1,785,542 shares of Common
Stock for the six months ended June 30, 2011 and 2012,
respectively, and 7,435,271 and 1,785,542 shares of Common Stock
for the three months ended June 30, 2011 and 2012, respectively,
because the effect would be anti-dilutive.</p>
</div>
1086000
6843000
-1091000
-3546000
25388000
1047000
<div style="FONT: 10pt Times New Roman, Times, Serif">
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Inventory at June 30, 2012 and December 31, 2011 consisted of
the following:</p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center">
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold" colspan="2">June 30,</td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold" colspan="2">December 31,</td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif" colspan="2">
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
<b>2012</b></p>
</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif" colspan="2">
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
<b>2011</b></p>
</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="FONT-SIZE: 10pt"> </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif" colspan="6">(U.S. dollars in thousands)</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; WIDTH: 64%; FONT-SIZE: 10pt">Raw
materials</td>
<td style="WIDTH: 1%; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">$</td>
<td style="TEXT-ALIGN: right; WIDTH: 15%; FONT-SIZE: 10pt">731</td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">
 </td>
<td style="WIDTH: 1%; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">$</td>
<td style="TEXT-ALIGN: right; WIDTH: 15%; FONT-SIZE: 10pt">279</td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt">Work in progress</td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt">89</td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt">-</td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT-SIZE: 10pt">
Finished goods</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
209
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
</p>
</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; FONT-SIZE: 10pt">Total
inventory</td>
<td style="PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
$</td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
1,029</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
$</td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
279</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
</table>
</div>
32279000
5133000
133000
<div style="FONT: 10pt Times New Roman, Times, Serif">
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"><b>NOTE
4 - SUBSEQUENT EVENTS</b></p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 49.65pt"></td>
<td style="WIDTH: 21.25pt"><b>a.</b></td>
<td>On July 16, 2012, the Company’s Board of Directors
approved the grant of 1,500,000 shares of restricted Common Stock
to its officers and certain other employees. Of such restricted
shares, 1,100,000 of the shares were issued to the Company's named
executive officers and vest in 16 equal, quarterly increments over
a four-year period, commencing upon the date of grant and are
subject to a 24-month lock-up period, commencing upon the
applicable vesting dates. Immediately and automatically in the
event of a Change in Control, as such term is defined in the
Company's 2006 Stock Incentive Plan, as amended, all of the shares
of restricted Common Stock issued to the named executive officers
shall vest, and the lock-up periods shall terminate, subject to
certain exceptions. The remaining 400,000 shares of restricted
Common Stock were issued to other employees of the Company and vest
in 12 equal, quarterly increments over a three-year period,
commencing upon the date of grant. The Company estimated the fair
value of the restricted stock on the date of grant to be
approximately $8,580,000.</td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 49.65pt"></td>
<td style="WIDTH: 21.25pt"><font style="COLOR: black"><b>b.</b></font></td>
<td>During July 2012, the Company issued a total of 1,000 shares of
Common Stock in connection with the exercise of options to purchase
1,000 shares of Common Stock by an employee of the Company. The
aggregate cash proceeds in connection with the exercise of the
options are equal to approximately $120.</td>
</tr>
</table>
</div>
92670033
1055000
462000
14000
0.04
19391000
26564000
4599000
<div style="FONT: 10pt Times New Roman, Times, Serif">
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
The weighted average number of shares outstanding used to calculate
earnings (loss) per share were as follows:</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="right">
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="6">Six Months Ended</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="6">Three Months Ended</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2012</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2011</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2012</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2011</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.45pt; PADDING-LEFT: 18.05pt; WIDTH: 34%; FONT-SIZE: 10pt">
Weighted average common shares outstanding for basic
calculation</td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
89,702,496</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
83,686,094</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
91,526,224</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
85,579,534</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.3pt; PADDING-LEFT: 0.25in; FONT-SIZE: 10pt">
Weighted average dilutive effect of stock options</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
2,967,537</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
3,354,943</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.45pt; PADDING-LEFT: 18.05pt; FONT-SIZE: 10pt">
Weighted average common shares outstanding for diluted
calculation</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
92,670,033</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
83,686,094</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
94,881,167</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
85,579,534</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; TEXT-INDENT: -17.3pt; PADDING-LEFT: 0.25in; FONT-SIZE: 10pt">
 </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
</tr>
</table>
</div>
3000
89702496
750000
2967537
29974000
<div style="FONT: 10pt Times New Roman, Times, Serif">
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"><b>NOTE
2 – INVENTORIES</b></p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Inventory at June 30, 2012 and December 31, 2011 consisted of
the following:</p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center">
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold" colspan="2">June 30,</td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold" colspan="2">December 31,</td>
<td style="FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif" colspan="2">
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
<b>2012</b></p>
</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif" colspan="2">
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
<b>2011</b></p>
</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="FONT-SIZE: 10pt"> </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif" colspan="6">(U.S. dollars in thousands)</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; WIDTH: 64%; FONT-SIZE: 10pt">Raw
materials</td>
<td style="WIDTH: 1%; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">$</td>
<td style="TEXT-ALIGN: right; WIDTH: 15%; FONT-SIZE: 10pt">731</td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">
 </td>
<td style="WIDTH: 1%; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">$</td>
<td style="TEXT-ALIGN: right; WIDTH: 15%; FONT-SIZE: 10pt">279</td>
<td style="TEXT-ALIGN: left; WIDTH: 1%; FONT-SIZE: 10pt">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt">Work in progress</td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt">89</td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt">-</td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT-SIZE: 10pt">
Finished goods</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
209
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
</p>
</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; FONT-SIZE: 10pt">Total
inventory</td>
<td style="PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
$</td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
1,029</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
$</td>
<td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
279</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
</table>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Effective as of the FDA approval of taliglucerase alfa on May 1,
2012, the Company capitalizes all manufacturing costs associated
with taliglucerase alfa.</p>
</div>
44000
24387000
1780000
3738000
183000
-37000
<div style="FONT: 10pt Times New Roman, Times, Serif">
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 36pt"></td>
<td style="WIDTH: 17.85pt"><b>c.</b></td>
<td style="PADDING-RIGHT: 81.35pt"><b>Earnings (loss) per
share</b></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Basic earnings (loss) per share are calculated by dividing the net
profit (loss) by the weighted average number of shares of the
Company's common stock, par value $0.001 (the "Common Stock"),
outstanding during each period.</p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Diluted earnings per share are calculated by dividing the net
profit by the weighted-average number of shares of common stock
outstanding during each period increased to include the number of
additional shares of common stock that would have been outstanding
if the potentially dilutive shares had been issued. Potentially
dilutive shares include outstanding stock options granted to
employees and non-employees.</p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
The weighted average number of shares outstanding used to calculate
earnings (loss) per share were as follows:</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="right">
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="6">Six Months Ended</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="6">Three Months Ended</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2012</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2011</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2012</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Times New Roman, Times, Serif" colspan="2">June 30, 2011</td>
<td style="PADDING-BOTTOM: 1pt; FONT: bold 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.45pt; PADDING-LEFT: 18.05pt; WIDTH: 34%; FONT-SIZE: 10pt">
Weighted average common shares outstanding for basic
calculation</td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
89,702,496</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
83,686,094</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
91,526,224</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%; FONT: 10pt Times New Roman, Times, Serif">
85,579,534</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.3pt; PADDING-LEFT: 0.25in; FONT-SIZE: 10pt">
Weighted average dilutive effect of stock options</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
2,967,537</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
3,354,943</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
-</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -17.45pt; PADDING-LEFT: 18.05pt; FONT-SIZE: 10pt">
Weighted average common shares outstanding for diluted
calculation</td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
92,670,033</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
83,686,094</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
94,881,167</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif">
 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Times New Roman, Times, Serif">
85,579,534</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; FONT: 10pt Times New Roman, Times, Serif">
 </td>
</tr>
<tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom">
<td style="TEXT-ALIGN: left; TEXT-INDENT: -17.3pt; PADDING-LEFT: 0.25in; FONT-SIZE: 10pt">
 </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: right; FONT-SIZE: 10pt"> </td>
<td style="TEXT-ALIGN: left; FONT-SIZE: 10pt"> </td>
</tr>
</table>
<br style="CLEAR: both" />
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0px 0pt 0.75in; FONT: 10pt Times New Roman, Times, Serif">
Diluted earnings (loss) per share do not include options of the
Company in the amount of 7,537,094 and 1,785,542 shares of Common
Stock for the six months ended June 30, 2011 and 2012,
respectively, and 7,435,271 and 1,785,542 shares of Common Stock
for the three months ended June 30, 2011 and 2012, respectively,
because the effect would be anti-dilutive.</p>
</div>
1860000
150000
1357000
15699000
-988000
25478000
2
<div style="FONT: 10pt Times New Roman, Times, Serif">
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.5in"></td>
<td style="WIDTH: 0.5in"><b>a.</b></td>
<td><b>General</b></td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.75in"></td>
<td style="WIDTH: 0.25in"><b>1.</b></td>
<td>Operation</td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
Protalix BioTherapeutics, Inc. (collectively with its subsidiaries,
the "Company"), and its wholly-owned subsidiary, Protalix Ltd., are
biopharmaceutical companies focused on the development and
commercialization of recombinant therapeutic proteins based on the
Company’s proprietary ProCellEx<sup>®</sup> protein
expression system ("ProCellEx"). In September 2009, Protalix Ltd.
formed another wholly-owned subsidiary under the laws of the
Netherlands, Protalix B.V., in connection with the European
Medicines Agency ("EMA") application process in the European Union.
The Company’s two subsidiaries are referred to collectively
herein as the "Subsidiaries."</p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
On May 1, 2012, the U.S. Food and Drug Administration (<font style="TEXT-TRANSFORM: uppercase">"</font>FDA<font style="TEXT-TRANSFORM: uppercase">"</font>) approved taliglucerase alfa
for injection, the Company’s first approved drug product, as
an enzyme replacement therapy (ERT) for the long-term treatment of
adult patients with a confirmed diagnosis of type 1 Gaucher
disease. Taliglucerase alfa is a proprietary, recombinant form of
glucocerebrosidase (GCD) that the Company developed using
ProCellEx. Taliglucerase alfa is the first FDA-approved plant
cell-based recombinant therapeutic protein.</p>
<p style="TEXT-INDENT: 0in; MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
Taliglucerase alfa is being marketed in the United States under the
brand name ELELYSO™ by Pfizer Inc. (<font style="TEXT-TRANSFORM: uppercase">"</font>Pfizer<font style="TEXT-TRANSFORM: uppercase">"</font>), the Company's
commercialization partner, as provided in the exclusive license and
supply agreement by and between Protalix Ltd. and Pfizer (the
<font style="TEXT-TRANSFORM: uppercase">"</font>Pfizer
Agreement<font style="TEXT-TRANSFORM: uppercase">"</font>).
Protalix Ltd. granted Pfizer an exclusive, worldwide license to
develop and commercialize taliglucerase alfa under the Pfizer
Agreement, but retained those rights in Israel. The Company has
agreed to a specific allocation between Protalix Ltd. and Pfizer
regarding the responsibilities for the continued development
efforts for taliglucerase alfa. To date, the Company has received
an upfront payment of $60.0 million in connection with the
execution of the Pfizer Agreement and shortly thereafter an
additional $5.0 million clinical development-related milestone
payment. The Company received an additional $25.0 million milestone
payment in connection with the FDA's approval of taliglucerase alfa
in the United States, which are recorded as revenues during the
current period. The agreement provides that the Company share with
Pfizer the net profits or loss related to the development and
commercialization of taliglucerase alfa on a 40% and 60% basis,
respectively, except with respect to the profits and losses related
to commercialization efforts in Israel. <font style="COLOR: black">In calculating the net profits under the agreement,
there are certain agreed upon limits on the amounts that may be
deducted from gross sales for certain expenses and costs of goods
sold</font>.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
The Company is cooperating with Pfizer to obtain marketing approval
for taligulcerase alfa in additional countries and jurisdictions.
Currently, marketing authorization applications have been filed for
the European Union, Israel, Brazil and Australia. In June 2012, the
EMA's Committee for Medicinal Products for Human Use (CHMP) adopted
an opinion recommending against the marketing authorization of
taliglucerase alfa in the European Union. While the CHMP gave a
positive risk-benefit assessment for taliglucerase alfa, its
recommendation was based solely on the orphan market exclusivity
granted to VPRIV<sup>®</sup>, Shire plc's Gaucher disease
treatment. It was not based on the safety and efficacy profile of
taliglucerase alfa. The Company and Pfizer are currently working
together, along with other interested parties, to determine the
next steps regarding the CHMP opinion.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
In addition to taliglucerase alfa, the Company is developing
certain other products using ProCellEx.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"></p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
Currently, patients are being treated with taliglucerase alfa on a
commercial basis in the United States, and, both within and outside
of the United States, through the Company's clinical trials and
related studies, compassionate use programs, special access
agreements, named patient provisions and other programs designed to
ensure that treatments are available to Gaucher patients in light
of recent shortages of approved treatments. In July 2009, following
a request by the FDA, the Company submitted a treatment protocol to
the FDA in order to address an expected shortage of the current
enzyme replacement therapy approved for Gaucher disease. The
treatment protocol was approved by the FDA in August 2009, and the
Company is continuing to treat patients in the United States under
this protocol as it winds down with patients being moved to
commercial treatment with Elelyso. On July 13, 2010, the Company
announced that the French regulatory authority had granted an
Autorisation Temporaire d'Utilisation (ATU), or Temporary
Authorization for Use, for taliglucerase alfa for the treatment of
Gaucher disease. An ATU is the regulatory mechanism used by the
French Health Products and Safety Agency to make non-approved drugs
available to patients in France when a genuine public health need
exists. This ATU allows Gaucher patients in France to receive
treatment with taliglucerase alfa before marketing authorization
for the product is granted in the European Union. Payment for
taliglucerase alfa has been secured through government allocations
to hospitals. In addition to the United States and France,
taliglucerase alfa is currently being provided to Gaucher patients
under special access agreements or named patient provisions in
Brazil and in other countries.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
On August 10, 2010, Pfizer entered into a short-term supply
agreement with the Ministry of Health of Brazil pursuant to which
the Company and Pfizer have provided taliglucerase alfa to the
Brazilian Ministry of Health for the treatment of Gaucher patients.
During the remainder of 2010 and the first quarter of 2011, the
Company and Pfizer completed the supply of products deliverable
under the short-term supply agreement. During 2011, Pfizer recorded
an allowance for sales returns in connection with the supply
agreement because the Brazilian Ministry of Health requested that
Pfizer consider the replacement of certain vials that might expire
during 2012. Revenue, net of allowance for sales returns, generated
from the Brazilian Ministry of Health was recorded by Pfizer, and
the Company recorded its share of such revenues in accordance with
the terms and conditions of the Pfizer Agreement.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%">
<tr style="VERTICAL-ALIGN: top">
<td style="WIDTH: 0.75in"></td>
<td style="WIDTH: 0.25in"><b>2.</b></td>
<td>Liquidity and Financial Resources</td>
</tr>
</table>
<p style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
In addition to the FDA approval, successful completion of the
Company’s development programs and its transition to normal
operations is dependent upon obtaining the foreign regulatory
approvals required to sell its products internationally. In
accordance with the terms and conditions of the Pfizer Agreement,
the Company received a $25.0 million milestone payment in
connection with the FDA's approval of taliglucerase alfa in the
United States. In addition, the Company is eligible to receive
potential milestone payments equal to $25.0 million, in the
aggregate, for matters relating to the successful achievement of
regulatory approval of taliglucerase alfa in the European Union.
Notwithstanding the FDA's approval of taliglucerase alfa, there can
be no assurance that the Company will receive regulatory approval
of taliglucerase alfa in the European Union or any other
jurisdiction, nor is there any assurance that the Company will
receive regulatory approval of any of its other product candidates,
and a substantial amount of time may pass before the Company
achieves a level of revenues adequate to support its operations, if
at all. The Company also expects to incur substantial expenditures
in connection with the regulatory approval process for each of its
product candidates during their respective developmental periods.
Obtaining marketing approval with respect to any product candidate
is directly dependent on the Company’s ability to implement
the necessary regulatory steps required to obtain such approval in
the United States and in other countries. The Company cannot
reasonably predict the outcome of these activities.</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
 </p>
<p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">
</p>
<p style="TEXT-ALIGN: left; MARGIN-TOP: 0px; TEXT-INDENT: 0in; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0.75in">
Based on its current cash resources and commitments, the Company
believes it will be able to maintain its current planned
development activities and the corresponding level of expenditures
for at least the next 12 months, although no assurance can be given
that it will not need additional funds prior to such time. If there
are unexpected increases in general and administrative expenses or
research and development expenses, the Company may need to seek
additional financing during the next 12 months.</p>
</div>
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shares
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pure
plx:Entity
plx:Installment
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Includes share-based compensation 2,445 256 2,384 152
Includes share-based compensation 1,314 265 1,246 127
Common Stock, $0.001 par value; Authorized - as of June 30, 2012 and June 30, 2011 - 150,000,000 shares.