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Precipio reaffirms forecast that product revenues will reach approximately 50% of pathology revenue by the fourth quarter of 2021
NEW HAVEN, Conn., April 26, 2021 (GLOBE NEWSWIRE) -- 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.
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, 2020, as updated from time to time in the Company’s Securities and Exchange Commission filings.
The Company’s forward-looking statements in this press release are based on management’s current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
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