Asia is the first Key Geographic Focal Point
NEW HAVEN, Conn., July 22, 2019 (GLOBE NEWSWIRE) -- Specialty Diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced today that in conjunction with its global expansion efforts, it has begun to establish distribution partnerships in Asia, which may yield early stage revenues as soon as Q4 of this year.
These activities continue to move Precipio in the direction of global expansion as well as revenue growth & diversification, by capitalizing on our assets to provide markets outside the US with the products and services they need. This also provides the company with unencumbered-by-insurance reimbursement, high-margin revenues which contribute to growing both the top and bottom lines.
Precipio’s value proposition to International customers includes two key areas:
1. World class academic-level pathology expertise
2. Innovative, proprietary laboratory technologies (such as IV-Cell™, HemeScreen™ and ICP).
Pursuant to Precipio’s strategic plan led by Chief Strategy Officer Ori Karev, the Company determined that the optimal approach to penetrating non-US markets is to first promote our proprietary technologies. These technologies meet an immediate customer need by replacing 3rd party products currently used, with our substantially improved technology-driven products.
During the last few months, the company conducted meetings with numerous hospitals and reference laboratories in Singapore, Malaysia, India and Thailand. Most institutions visited expressed a strong interest in using our products, and subject to a successful validation, they expect to incorporate our products into their existing work processes. Precipio estimates the potential annual revenue from the Asian customers visited to be approximately $5M annually.
The company has commenced arrangements for trials in Asia which we expect will take place this quarter. An initial shipment has already arrived to Asia for customers to begin testing our products, and we are setting up local partnerships to support localized logistics operations necessary to handle shipping, importation and regulatory aspects of delivering these products to our customers.
We expect to make announcements of agreements with partners, clients and distributors, as the case may be, as soon as they are finalized. In parallel, Precipio continues to develop its business in other key geographic areas such as South America, Europe, and the UAE.
“The enthusiastic response we have received in Asia has validated our value proposition, and we are excited to make the move from ideation and strategy to implementation within 3 months from the time we embarked on our global expansion strategy,” said Ori Karev, Precipio’s Chief Strategy Officer. “Testing the waters through our recent Asian visit is only the beginning - we will continue to utilize our global contact network to grow our relationships in order to capitalize on our value propositions outside of the US, while significantly contributing to revenue growth.”
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. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment such as the Yale School of Medicine and Harvard’s Dana-Farber Cancer Institute, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
Certain statements in this press release constitute “forward-looking statements,” within the meaning of federal securities laws, including statements related to ICP technology, including financial projections related thereto and potential market opportunity, plans and prospects and other statements containing the words “anticipate,” “intend,” “may,” “plan,” “predict,” “will,” “would,” “could,” “should,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the known risks, uncertainties and other factors described in the Company’s definitive proxy statement filed on April 19, 2019 , the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and on the Annual Report on Form 10-K for the year ended December 31, 2018 as well as the Company’s prior filings and from time to time in the Company’s subsequent filings with the Securities and Exchange Commission. Any change in such factors, risks and uncertainties may cause the actual results, events and performance to differ materially from those referred to in such statements. All information in this press release is as of the date of the release and the Company does not undertake any duty to update this information, including any forward-looking statements, unless required by law.