Precipio reaffirms forecast that product revenues will reach approximately 50% of pathology revenue by the fourth quarter of 2021
NEW HAVEN, CT, (April 26th, 2021) – Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced that currently, the contracted annualized revenues from signed customers for its HemeScreen POL (Physician Office Laboratory) testing system exceed $750,000 and for the reasons set forth below, by Q4-2021 this cohort is expected to result in reported quarterly revenues with an annualized run rate of $1,000,000.
With an additional pipeline of over 30 prospective customers nationwide, Precipio currently reaffirms its forecast that product revenues will reach approximately 50% of pathology revenue by the fourth quarter of 2021.
The annualized reported revenues from the cohort of current signed customers are expected to increase to $1,000,000 by Q4-2021 because newly signed customers typically make smaller contractual commitments in order to evaluate their work flow and HemeScreen utility before committing to a larger number.
In addition, during the coming months the HemeScreen offering is anticipated to broaden by the introduction of additional panels for other types of cancer. If successful, this expansion will improve patient care while providing meaningful financial benefits to customers’ and to Precipio’s bottom line. As Precipio continues to introduce additional assays to be utilized on the same platform, average revenue per customer will increase via incorporation and utilization of these assays within the POL’s operations.
In this short window of marketing HemeScreen, as the economy is now allowing in person meetings, we have seen oncologists’ quickly recognize the clinical benefits to their patients and the financial improvements to their practice that HemeScreen can generate. The enthusiasm we have received and the rapid market acceptance generated by our HemeScreen product is a confirmation of our earlier communications to shareholders.
The partnership with ION Solutions continues to demonstrate its value, as the ION team is leveraging its strong relationships with its oncology customers to build the sales pipeline for this offering. For this reason we project this growth rate should accelerate as our product gains more traction, and we continue to build a strong track record of customer success and satisfaction.
“When a company is able to offer a product that combines a positive impact to patient care as well as a meaningful financial benefit to its customers, we create a compelling value proposition.” said Ilan Danieli, Precipio’s Chief Executive Officer. “With HemeScreen leading the way and building new customers, we are encouraged that new revenues can significantly and positively benefit the bottom line”.
Precipio has built a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to physicians and their patients worldwide, as well as proprietary products that serve laboratories worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment such as the Yale School of Medicine, Harvard’s Dana-Farber Cancer Institute, and the University of Pennsylvania, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
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