Precipio (NASDAQ: PRPO) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has signed its first major international services contract, exciting investors and sending the stock for the top. Today, we’ll talk about:
- The new service contract;
- what we’re seeing from PRPO stock as a result; and
- what we’ll be watching for ahead.
Read our detailed report on PRPO here!
PRPO Announces First Major International Contract
As mentioned above, Precipio is having a strong day in the market today after announcing that it has signed its first major international services contract. The announcement came by way of press release early this morning.
In the release, the company said that it has signed a services contract with a healthcare management group that serves several major hospitals in Cairo, Egypt. In the beginning, the contract will cover patient biopsies for primary diagnosis and secondary opinion.
Moving forward, the company intends on collaborations that will include the establishment of laboratory operations within Egypt that will license the proprietary technologies developed by PRPO to provide liquid biopsy testing. These technologies include the company’s ICE-COLD PCR technology and its HemeScreen for hematologic molecular testing.
Due to historic volumes at these hospitals, it is expected that the agreement will lead to significant revenues in the first year. Also, the company said that once its liquid biopsy and HemeScreen tests are available within Egypt, it is expecting for revenues to be substantially augmented from thes ales of its tests. Initial revenues are expected to start by the end of the second quarter.
In a statmeent, Ilan Danieli, CEO at PRPO, had the following to offer:
I am delighted to see the benefits of our international efforts beginning to capitalize on Precipio’s platform and technologies and deliver the highest level of expertise to patients worldwide. The international segment of our business is going to be a valuable contributor to our revenues, margins and cash flow in the coming quarters.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves in the market. When it comes to Precipio, the news proved to be overwhelmingly positive.
After all, the new services contract comes just days after the company announced its plans to expand to the international stage. So, not only will the agreement drive revenue, it shows that the company’s hitting the ground running when it comes to its international goals.
Considering this, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:08), PRPO is trading at $6.25 per share after a gain of $1.45 per share or 30.21% 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 aggressive international expansion and the value that it brings to investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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