NEW HAVEN, Conn., April 06, 2020 (GLOBE NEWSWIRE) -- 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.