NEW HAVEN, Conn., March 07, 2023 (GLOBE NEWSWIRE) -- 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.

About Precipio

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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Forward-Looking Statements

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