Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO),
announced today that it has launched its HemeScreen™ Reagent Rental
(HSRR) program. The program enables Precipio to offer its
patent-pending HemeScreen technology beyond the laboratory and into
the oncologist’s office. A tried-and-true structure that is
prevalent in the diagnostic world, the HSRR program will enable
office-based physicians to place Real-Time PCR (RT-PCR) testing
equipment with no capital outlay.
Through this program, the physician practice
will have the ability to run the diagnostic tests in-house instead
of sending out to reference laboratories, obtaining faster results
and providing patients with better care. Customers will make one
monthly payment to purchase HemeScreen reagents, which will
subsidize the cost of the PCR equipment. The equipment itself will
be financed by an outside finance company, and its cost will be
incorporated into the monthly reagent payments.
Rationale for the RR model
As the economy continues to be impacted by
COVID-19, oncology practices are seeing their patient visits
(patients who are largely within the high-risk Covid-19 segment)
rapidly decline. Furthermore, as commercial reference laboratories
are embroiled in the operational complexities due to COVID-19,
turnaround times for diagnostic testing now present additional
challenges for patient care. By enabling office-based physicians to
test on-site, turn-around-times are reduced, staff productivity
increases and the physician can generate a new revenue stream.
The HSRR program offers a turn-key approach that
includes office staff training, customer support and access to the
necessary diagnostic protocols. Furthermore, physician offices
already running CBC (complete blood count) tests in their offices
require no additional regulatory permits.
Precipio recognized that therein lies an
opportunity to solve the challenges the oncology practice faces;
while increasing the reach and utilization of HemeScreen, and
creating a potential long-term revenue stream for Precipio. The
physician office commits (based on their existing volume of tests)
to a monthly purchase of reagents from Precipio, providing Precipio
with a fixed, recurring revenue stream to Precipio.
Utilizing its sales force, Precipio intends to
approach over 100 customers this quarter. Precipio estimates the
potential market size of at least 1,000 physician practices in the
US; anticipated revenue potential from each customer ranges from
$50k-$250k based on the size of the practice.
Physician offices interested in exploring this
opportunity to increase their revenue while receiving faster TAT
for their tests, should contact us at hsrr@precipiodx.com for more
information.
HemeScreen Product Family
Pipeline
Precipio’s HemeScreen is for patients
suspected of having a Myeloprofierative Disorder (MPD), a group of
leukemia-related conditions, where the diagnosis is supported by
the laboratory genetic results. HemeScreen streamlines this
testing and the HHSR program brings testing into the physicians’
offices.
Additionally, Precipio has made available its
first version of the HemeScreen family, which includes JAK2 exon
12, JAK2 v617f, MPL and CALR. Precipio is currently in the process
of applying its proprietary technology to develop additional assays
that will enhance the HSRR offering, enabling the physician office
to bring in additional tests using the same testing platform and
equipment.
Assays for genes such as Igvh, IDH1 & IDH2,
KIT mutations as well as others, create a “razor-and-blade” model,
as add-on assays to its HemeScreen product line. Precipio can
continue to enhance its product line and increase its revenue
stream from the same customer.
“During these crisis times when the reference
laboratory segment is struggling under the challenging
circumstances of social distancing and declining economic activity,
I am proud of our team for coming up with this solution that
creates a win-win for our physician customers, particularly in
their time of need,” said Stephen Miller, Chief Commercial
Officer.
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. 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.
Forward-Looking Statements
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 May 29, 2018, the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2019 and on the
Annual Report on Form 10-K for the year ended December 31, 2019 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.
Inquiries
investors@precipiodx.com
+1-203-787-7888 Ext. 523
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