PRPO stock is up 10% as buyers continue to be attracted to the stock following the company’s Buy rating and new project with a large healthcare company.
On November 14, 2019, Precipio announced a “substantial biomarker project with a large healthcare company that will generate significant revenue over the next two quarters.” Precipio expects the project to be completed by the end of Q1 2020. Stephen Miller, Precipio’s Chief Commercial Officer, said, “With the exception of the recent quarter, we have had ongoing profitable revenue from our pharma clients. We are confident that our pharma project pipeline will continue to generate substantial revenue in the coming quarters.” The company’s headline for its announcement identifies the opportunity as a “$750,000 pharma project.”
Precipio announced preliminary results shared by two independent laboratories conducting testing of IV-Cell Media in a side-by-side parallel study comparing it to the media currently used by these laboratories. Both laboratories conducted a multi-sample study to evaluate the clinical and operational performance of IV-Cell, as part of their assessment to convert to using IV-Cell exclusively. One laboratory reported that in a case tested, an abnormality was identified in the translocation of chromosomes 15 and 17, an abnormality indicative of Acute Promyelocytic Leukemia, or APL. This translocation was found only when IV-Cell was applied to the cell culture. APL is an aggressive form of acute myeloid leukemia that cannot be definitively diagnosed without the identification of this translocation. The same sample was cultured using the laboratory’s current media and the translocation was not identified due to inferior results of their current media. In this situation, using the existing media the pathologist would not have been able to diagnose the patient with Leukemia based on the cell culture created. By analyzing the culture using IV-Cell, a cytogeneticist would clearly identify this as an abnormality associated with Leukemia, providing the diagnosing pathologist with pertinent information to make the definitive diagnosis of Acute Promyelocytic Leukemia. This is a finding that demonstrates the clinical value of IV-Cell media. A second laboratory sharing results of its testing also presented superior results for IV-Cell media when compared to their existing media used. The results showed improved performance in terms of mitotic index and banding resolution, two quality indicators critical to successful cell culturing. Furthermore, the laboratory also measured the labor time required to set up and run the culture using IV-Cell versus their existing culture. The results showed an average reduction of three plus hours of labor time per case using IV-Cell.
Back on September 30, 2019, Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced that Tennessee Oncology has selected Precipio’s HemeScreen RUO assay as its molecular testing assay for hematologic malignancies such as myelodysplastic syndromes (MDS) and myeloproliferative neoplasms (MPD). TN Oncology’s laboratory has validated the test and will be performing the HemeScreen assay as a lab developed test (LDT) within their laboratory.
This marks the first substantial customer for one of Precipio’s technologies. A first order has been placed – and delivered.
Tennessee Oncology is one of the nation’s largest community-based cancer care specialists. With 90 physicians in 40 locations, Tennessee Oncology deploys a POL (Physician Office Laboratory) which services their physicians. The laboratory runs a full suite of diagnostic services; with the addition of HemeScreen, it is able to provide better turnaround time and a higher quality of service to its physicians.
Tennessee Oncology is part of OneOncology, a partnership of independent community oncology practices working together to deliver comprehensive cancer care that includes the West Cancer Center and New York Cancer and Blood Specialists. Combined, OneOncology has more than 200 oncology providers.
Based on current volume within Tennessee Oncology’s laboratory, and taking into consideration the affiliate practices within OneOncology, Precipio anticipates revenues of approximately $750,000 per year from this group alone, scaling up beginning in Q4-2019. Furthermore, we estimate that in the US there are likely over 50 similar-size potential customers such as Tennessee Oncology for Precipio’s HemeScreen assay.
Under the published WHO guidelines, patients with Myeloproliferative Disorders (MPD) and Myelodysplastic syndrome (MDS) are required to be tested for the gene mutations included in the HemeScreen panel. These mutations include both therapeutic mutations which indicate the patient’s potential response to a targeted therapy; and also prognostic mutations, which indicate how aggressive the tumor may be.
These insights into the patient’s condition are critical to the immediate therapy decisions a physician must make, and therefore time is of the essence to receive those results. Many laboratories currently provide a turn-around-time (TAT) of 2-3 weeks for results on all 4 mutations; this can become a substantial waiting period for physicians and their patients awaiting this critical information to begin treatment.
Due to the efficiency of the technology utilized in HemeScreen, laboratories can achieve a rapid TAT of 1-2 days, significantly shortening the waiting time for these critical results for physicians and their patients.
“By offering an attractive solution for laboratories to generate revenue and profit, we add economic value as well as speed up clinical decision making for the physicians and patients”., said Stephen Miller, Precipio’s Chief Commercial Officer.
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.