The specialty cancer diagnostics business Precipio Inc. (NASDAQ: PRPO) is soaring on the charts today, up 9.52% to trade at $0.6825 at last check in after-hours trading after the company announced a long-term deal.
What contract did PRPO announce?
A new customer signed a four-year deal with Precipio (PRPO) to use HemeScreen technology in their lab. Based on volume data given by the customer, Q1-2023 revenues are anticipated to be in the neighborhood of a $250,000 run rate, an increase of about 15% above Precipio’s current HemeScreen business rate. Additionally, PRPO’s revenues are anticipated to climb by over 60% above its current HemeScreen flow rate to reach over a $1M operating margin by year’s end of 2023.
Due to two factors, PRPO has noticed in its current clients a lower starting volume followed by an increase in usage and subsequent income when customers integrate its expertise into their laboratories. These include smaller volumes at first as clients adjust their practices to use HemeScreen internally and their expected adoption of more test panels as they streamline their workflow and testing methods.
As a result of the strong possibilities in its stack of prospects of a comparable magnitude discovered by new distributors, PRPO sees it as the start of a prolonged growth era. The inclusion of additional clients currently in PRPO’s sales funnel and the recurring income from this customer will aid in building a solid foundation for the company. Each new client helps PRPO lower its burn rate and inch closer to profitability. PRPO projected that its team would continue to produce contracts that would lead to ongoing, similar news releases, together with its distribution partners.
PRPO recently delivered a poster presentation of the findings of a ground-breaking study, carried out in partnership with academics at the University of Pennsylvania, at the annual 2022 AMP conference. The study, which is anticipated to be published in full early in the following year, showed that PRPO’s HemeScreen MPN panel produced better findings than Sanger Sequencing.
What did PRPO want to accomplish?
By undertaking a blinded, side-by-side comparison of patient samples with known findings utilizing two technologies, Precipio (PRPO) aimed to evaluate the accuracy of the HemeScreen technology. Sanger sequencing, the technology with the highest level of precision and reliability, was used by PRPO to analyze 982 sample data for the same genes in the research.