On Wednesday, Precipio Inc. (NASD: PRPO) increased 7.30% to $0.88 in after-hours trade. The increase that enabled PRPO to reverse its regular-session loss occurred in the absence of any pertinent news suggesting that recent events may be having an effect on the stock.
What may be causing the PRPO stock to increase?
Recently, Precipio (PRPO) and a significant distribution partner (name withheld per partner’s policy) inked a distribution deal for HemeScreen. This distribution channel partner’s sales team will start pushing and driving sales of the HemeScreen platform to hundreds of their current clients after an upcoming training program and onboarding of their nationwide coverage.
Precipio is still carrying out its multi-faceted HemeScreen distribution expansion plan, which is aimed at physician-owned laboratories, hospital networks, and national and regional reference labs (POLs). Precipio’s engagement with a variety of distributors and channel partners enhances coverage of the market’s potential.
The new distributor concentrates on a sector of the healthcare industry that, according to PRPO estimates, has an additional $100M in market potential and is less likely to be reached by our current distributors. Precipio currently has over 250 sales professionals calling on diverse groups of qualified potential clients thanks to this distributor.
With this and its prior contracts in place, PRPO will have full access to and good coverage of all target segments for HemeScreen. Once a result, PRPO anticipates significant revenue growth as these relationships take off. In order to ensure that it achieves revenue growth and market penetration for this exceptional technology, PRPO saw the partnership as a chance to team up with industry-leading distributors.
Has HemeScreen’s introduction been successful?
Precipio released its second generation of HemeScreen panels in August, giving customers that use HemeScreen in their labs the choice of upgrading to the 1-step assay or sticking with the current assay.
The new version of panels does not require the positive-confirmation phase, which was necessary for the prior generation’s 2-step procedure. This indicates that both positive and negative findings can be obtained within three hours of the assay’s completion.
What made the enhanced version of PRPO more successful?
At the R&D lab of Precipio (PRPO), the latest version of the assay has undergone comprehensive testing and validation. It has been used clinically by PRPO’s CLIA/CAP accredited laboratory for a number of months, and the lab has gathered enough evidence to support its clinical and operational value. Customers of HemeScreen will now get this upgraded version from the Products Division.