Conversion from sales funnels developed with distribution partners alongside direct sales points to continued accelerated growth
NEW HAVEN, CT, Globenewswire – (March 7th, 2023) – Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO) continues to convert its sales pipeline into HemeScreen customers, with an additional recently signed agreement expected to generate annualized revenues exceeding $125,000.
Furthermore, this month we also expect another customer to launch an additional new panel within their lab, growing their internal HemeScreen program, and increasing the revenue to Precipio from this existing customer; and two more customers which we previously signed agreements with, going live – adding to the company’s growing revenue base.
While this may seem like a relatively small-revenue customer, we want our shareholders to understand the importance of customers like this. First, at this early stage, any customer – large or small – represents a reference account which brings in other business. Second, these smaller customers have a different experience than the larger ones – they experience new revenue, not just a cost reduction from HemeScreen technology which previously has been beyond their reach.
Third, we believe that a mix of larger and smaller customers will create a more stable business base and uncover opportunities, particularly in the smaller accounts, that can create new products and services of value.
Based on our current customer base, revenues in Q2-2023 are now estimated to be ~50% greater than Q1-2023, and the quarterly run rate for Q2-2023 is expected to increase by ~120% over the Q2-2022 quarterly run rate.
“I expect that 2023 is going to be a year of strong conversion of our technology, pipeline, and distribution partnerships – into dollars”, said Ilan Danieli, Precipio’s CEO. “Our messaging and market segments are well aligned and are garnering the attention of customers. Our sales process is robust and rapid; our customer technical support and onboarding team is well equipped to handle the expected growth. We will continue to update our shareholders periodically as we see meaningful increases to our revenue expectations”.
HemeScreen customer onboarding process
Some shareholders have asked questions around the timeline, steps, complexity and regulatory requirements for a laboratory to onboard HemeScreen. While the process requires various steps, our customers have dealt with these issues when introducing other tests into their lab. Most labs can achieve them and complete the onboarding process within 4-8 weeks.
Much like the vast majority of laboratory tests used in the US, HemeScreen is classified as a set of RUO (research-use-only) reagents, which means the validation of the test is performed under the LDT (Laboratory Developed Test) process, not the FDA regulatory process. The LDT process generally requires a laboratory to conduct various validation steps in order to demonstrate the accuracy and reproducibility of the assay; a process that any high complexity laboratory is very familiar with.
As such, most customers can onboard new technologies such as HemeScreen in a relatively rapid manner, and within several weeks their test can be up and running. Precipio’s technical onboarding team supports our customers during the onboarding process through various steps such as ensuring that the lab has the set up their equipment correctly, has purchased the necessary lab tools and consumables, and has set up their workflow to maximize the efficiency of the assay.
For more information, investors can read about this process here.
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, 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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This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and the company, on our business, financial condition and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations, or could affect the company’s ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the company’s business, operations and employees and the other factors that are described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis” in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as updated from time to time in the company’s Securities and Exchange Commission filings.
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