Strong indications of academic-level pathology market adoption and sales uptake
NEW HAVEN, CT, (February 22nd, 2018) - Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced today that within the first half of Q1-2018 it has set up trials for pathology lab services with 4 times as many new oncology customers as in the entire prior quarter, representing a substantial increase of its new customer rate to 10 trials in the first half of Q1-2018.
Each customer represents annual revenue potential of $50,000-$150,000/year. The new customer trials metric is the single most significant indicator of business growth, and paints an exciting picture for Precipio’s 2018 revenue growth.
In order to win each of our existing customers, our sales team has successfully unseated an incumbent, often well-entrenched laboratory. The first, and often most challenging step, is to persuade the customer to try the services of a different laboratory. Therefore, a key driver of ultimately converting customers is to enter into a trial with the customer so they can experience the difference Precipio’s services offer.
Once the customer has experienced the various aspects of our service, they must decide whether to remain with their existing laboratory, or switch to use Precipio’s services. Historically, our customer retention rate has been significantly higher than typically observed in the industry.
During this process, our team cross-sells value-added products and services such as our Harvard licensed liquid biopsy ICE-COLD PCR™ (ICP) testing which enables doctors to monitor patients for treatment resistance and determine other genetic mutation-based outcomes.
Precipio offers two unique elements of service unparalleled by competing laboratories.
The first is access to the highest level of academic expertise, delivered with quality commercial service. Only Precipio offers oncologists direct, easy access to world-class academic experts, while providing the necessary service-related elements such as rapid results, electronic report delivery, billing, customer service, and other ancillary services that are critical competitive elements within our industry.
Second, Precipio offers access to superior technology and advanced diagnostic services such as ICP, and our proprietary IV-Cell technology, which lead to better patient outcomes due to the more appropriate treatment plans that result from an accurate diagnosis.
Our strategy is to use these powerful competitive advantages over commoditized laboratories to rapidly win market share and cross sell the value add products.
The sales team is measured by several key metrics, among them quarterly revenue growth, customer conversion, and trial pipeline. The latter is the “feeder” metric that drives the other metrics, and therefore is a critical metric to achieve growth.
“It is extremely encouraging to see our planned cross-selling between pathology services and ICP materialize and we expect further acceleration as we grow our sales infrastructure, add new value enhancing technologies, and expand into new regions”, said Stephen Miller, Precipio’s Chief Commercial Officer. “I have experienced first-hand with our sales team how our company is positively viewed by customers as an innovator and different from competitors.”
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. For more information, please visit www.precipiodx.com.
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 12, 2017, the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, 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.