Precipio Inc (NASDAQ: PRPO) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that its product has been adopted by a new hospital.
Of course, the news excited investors who are pushing the stock for the top. Today, we’ll talk about:
- The new customer adoption;
- what we’re seeing from PRPO stock as a result; and
- what we’ll be watching for ahead.
PRPO Stock Gains On Customer Adoption
As mentioned above, Precipio is having a great day in the market today after announcing that its product has been adopted by a new hospital. The announcement came via press release early this morning.
In the release, the company said that Methodist Hospital in Memphis, TN, has selected its HomeScreen assay for use in its molecular hematology testing laboratory. Previously, the company would send out these tests to a local laboratory and was experiencing an average turnaround time of between two and four weeks.
Moving forward, Methodist will send its patient samples to PRPO for the HomeScreen assay. As a result, it will be guaranteed an average turnaround time of between two and four days.
Due to the fast turnaround time and the quality of testing, the hospital will have the opportunity to make faster clinical decisions, leading to better patient care. Moreover, Methodist has the potential to generate recurring revenue for PRPO in the amount of between $50,000 and $100,000 per year.
In a statement, Ilan Danieli, CEO at PRPO, had the following to offer:
The rapid adoption of HemeScreen demonstrates the validation of our business model as both a clinical laboratory and an incubator for new technologies which we are able to successfully commercialize.
By dealing with real-life problems encountered daily in our lab, we are able to identify, file for patent, develop, and then test various technologies, ultimately selecting the winning ones to bring to market. HemeScreen is an example of a technology that has traveled from an idea in our lab last year, to a growing revenue contributor in 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Precipio, the news proved to be overwhelmingly positive.
After all, the Memphis Hospital adoption of the company’s product will drive meaningful annual revenue for the company. Moreover, as an early adopter, Memphis will set the stage for case studies that will likely lead to further sales down the line.
Considering this, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:02), PRPO is trading at $0.15 per share after a gain of $0.022 per share or 17.09% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PRPO. In particular, we’re interested in following the story surrounding the company’s continued work to expand the sale of its HomeScreen assay. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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