Protalix BioTherapeutics Reports Second Quarter 2020 Financial Results and Provides Business Update Announced positive top-line data in its Phase III BRIDGE study of PRX-102 for the Treatment of Fabry disease Submission

Protalix BioTherapeutics Reports Second

Financial Results and Provides Business

Announced positive top-line data

in its Phase III BRIDGE study of

PRX-102 for the Treatment of Fabry disease

Submission of a Biologics License

Application (BLA) to the U.S. Food and Drug Administration for PRX-102 for the treatment of Fabry disease

Conference call and live webcast scheduled

for Monday, August 10, 2020 at 8:30 am ET

CARMIEL, Israel, August 10, 2020 /PRNewswire/Protalix

BioTherapeutics, Inc. (NYSE American:PLX) (TASE:PLX), a biopharmaceutical company focused on the development, production and commercialization

of recombinant therapeutic proteins produced by its proprietary ProCellEx plant cell-based protein expression system,

today reported financial results for the second quarter ended June 30, 2020, and provided a business update on recent corporate

and clinical developments.

"This quarter, we delivered on two very important milestones

for the company: announcing positive topline results in our BRIDGE phase III clinical trial of PRX-102 for the treatment

of Fabry disease and subsequent BLA submission to the U.S. Food and Drug Administration (FDA). We were able to accomplish

these goals even as we faced the challenging headwinds from the global COVID-19 pandemic, and I am very proud of our entire team

for their commitment and dedication," said Dror Bashan, Protalix's President and Chief Executive Officer. "As

we look towards an exciting second half of the year, we are continuing to build Protalix for the long term. We augmented our research

and development team with highly qualified and seasoned veterans to support and enhance our pipeline, and we announced a new partnership

to explore the development of PRX-110." Mr. Bashan concluded, "We are gratified to have a balance sheet supporting

our strategic plans and look forward to continuing to execute as we move towards the anticipated commercial launch of PRX-102 for

the treatment of Fabry disease."

Recent Business Highlights

Second Quarter 2020 Financial Highlights

The Company recorded revenues from selling

goods of $3.6 million during the three months ended June 30, 2020, an increase of $0.2 million, or 6%, compared

to revenues of $3.4 million for the same period of 2019.

Revenues from license and R&D services

for the three months ended June 30, 2020, were $7.3 million, a decrease of $1.5 million, or 17%, compared to revenues

of $8.8 million for the same period of 2019. Revenues from license and R&D services are comprised primarily of revenues

the Company recognized in connection with its license and supply agreements with Chiesi. The decrease is primarily due to the completion

of two out of the three phase III clinical trials of PRX-102 as well as lower costs related to the Company's phase III BALANCE

clinical trial of PRX-102 for the treatment of Fabry disease.

Cost of goods sold was $1.8 million for

the three months ended June 30, 2020, a decrease of $0.9 million, or 32%, from cost of goods sold of $2.7 million

for the same period of 2019. The decrease is primarily due to a change in the cost structure as well as lower royalties paid to

the Israeli Innovation Authority.

Research and development expenses were $9.2 million

for the three months ended June 30, 2020, a decrease of $4.1 million, or 31%, compared to $13.3 million of research

and development expenses for the same period of 2019. The decrease is primarily due to the completion of two out of the three phase III

clinical trials of PRX-102 and reduced costs related to the Company's phase III BALANCE clinical trial as well as a

decrease in costs related to manufacturing of the Company's drug in development as some of the manufactured drug product

and related costs have been recorded as inventory.

Selling, general and administrative expenses

were $2.2 million for the three months ended June 30, 2020, an increase of $0.1 million, or 6%, compared to $2.1 million

for the same period of 2019.

Cash and cash equivalents at June 30,

2020 was $4.8 million, with $35.2 million in bank deposits.

Conference Call and Webcast Information

The Company will host a conference call on Monday, August 10,

2020, at 8:30 am, Eastern Daylight Time, to review the clinical, corporate, and financial highlights. To participate in the

conference call, please dial the following numbers prior to the start of the call:

The conference call will be broadcast live and also available

for replay for two weeks on the Company's website, www.protalix.com, in the Events Calendar of the Investors section. Please

access the Company's website at least 15 minutes ahead of the conference to register, download, and install any necessary

About Protalix BioTherapeutics, Inc.

Protalix is a biopharmaceutical company focused on the development

and commercialization of recombinant therapeutic proteins expressed through its proprietary plant cell-based expression system,

ProCellEx . Protalix was the first company to gain U.S. Food and Drug Administration (FDA) approval of a protein

produced through plant cell-based in suspension expression system. Protalix's unique expression system represents a new method

for developing recombinant proteins in an industrial-scale manner.

Protalix's first product manufactured by ProCellEx, taliglucerase

alfa, was approved for marketing by the FDA in May 2012 and, subsequently, by the regulatory authorities of other countries. Protalix

has licensed to Pfizer Inc. the worldwide development and commercialization rights for taliglucerase alfa, excluding Brazil, where

Protalix retains full rights.

Protalix's development pipeline consists of proprietary

versions of recombinant therapeutic proteins that target established pharmaceutical markets, including the following product candidates:

pegunigalsidase alfa, a modified version of the recombinant human -Galactosidase-A protein for the proposed treatment of

Fabry disease; OPRX-106, an orally-delivered anti-inflammatory treatment; alidornase alfa for the treatment of Cystic Fibrosis;

PRX-115, a plant cell-expressed recombinant PEGylated Uricase for the treatment of gout; and others. Protalix has partnered with

Chiesi Farmaceutici S.p.A., both in the United States and outside the United States, for the development and commercialization

of pegunigalsidase alfa.

Forward-Looking Statements

To the extent that statements in this press release are not

strictly historical, all such statements are forward-looking, and are made pursuant to the safe-harbor provisions of the Private

Securities Litigation Reform Act of 1995. The terms "expect," "anticipate," "believe," "estimate,"

"project," "plan," "should" and "intend," and other words or phrases of similar

import are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks

and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements

are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree

of risk and the final results of a clinical trial may be different than the preliminary findings for the clinical trial. Factors

that might cause material differences include, among others: risks that the FDA will not accept an application for accelerated

approval of PRX-102 with the data generated to date or will request additional data or other

conditions of our submission of any application for accelerated approval of PRX-102 and, if

approved, whether PRX-102 will be commercially successful; failure or delay in the commencement

or completion of our preclinical and clinical trials which may be caused by several factors, including: slower than expected rates

of patient recruitment; unforeseen safety issues; determination of dosing issues; lack of effectiveness during clinical trials;

inability to monitor patients adequately during or after treatment; and inability or unwillingness of medical investigators and

institutional review boards to follow our clinical protocols; risks associated with the novel coronavirus disease (COVID-19)

outbreak, which may adversely impact our business, preclinical studies and clinical trials; risks related to any transactions we

may effect in the public or private equity markets to raise capital to finance future research and development activities, general

and administrative expenses and working capital; the risk that the results of the clinical trials of our product candidates will

not support our claims of safety or efficacy, that our product candidates will not have the desired effects or will be associated

with undesirable side effects or other unexpected characteristics; risks related to our ability to maintain and manage our relationship

with Chiesi Farmaceutici and any other collaborator, distributor or partner; risks related to the amount and sufficiency of our

cash and cash equivalents; risks related to the successful conclusion of our negotiations with the Brazilian Ministry of Health

regarding the purchase of BioManguinhos alfataliglicerase generally; risks related to our commercialization efforts for BioManguinhos