Precipio (PRPO) Stock: Up On Exclusive Manufacturing Agreement

Precipio PRPO Stock News

Precipio Inc (NASDAQ: PRPO) is making a run for the top in the market this morning after announcing that it has entered into an exclusive manufacturing agreement. Of course, the news led to excitement among investors, who have sent the stock up by more than 7% early in the trading session.

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PRPO Announces Exclusive Manufacturing Agreement

As mentioned above, Precipio is climbing after a press release announcement that it has entered into an exclusive manufacturing agreement. The agreement was signed with a diagnostics manufacturing company by the name of Novamed.

According to the terms of the agreement, Novamed will produce the proprietary IV-Cell media that was developed by PRPO on an exclusive basis for an initial term of 3 years.

Novamed makes a great partner. After all, it is one of about a handful of companies around the world with both specific and substantial experience in the production of products similar to IV-Cell media. Moreover, the company has the capability to scale up production of the media to a large volume that will meet the demand that is anticipated by PRPO.

Why This News Is Important

First and foremost, Novamed is no newcomer to the industry. In fact, the company has experience providing several reagents to companies like Thermo Fisher and Abbott Laboratories.

However, the partner themselves isn’t the only reason to be excited here. At the end of the day, the agreement will give Precipio the ability to provide cytogenetics laboratories in the United States and around the world with IV-Cell media at a rate that will meet demand. This ability to produce the required volume is a key hurdle that has now been passed.

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Management Commentary

The development and launch of a new media which will impact the diagnostic process, and subsequently the lives of tens of thousands of patients, is one that must be done carefully and correctly. The search for the right manufacturer was viewed as critical to the successful commercialization of our proprietary media and we are confident that in Novamed we have found the right partner. – Ilan Danieli, Precipio CEO.

We are excited to be working with Precipio to bring to market its novel media. Novamed has always prided itself on creating and delivering meaningful, patient-impacting products, and so IV-Cell fits our portfolio well. – Dr. Emil Katz, Novamed CEO.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team is excited to follow the movements of PRPO. With the global commercialization plans in mind, we believe that the stock has the potential to see dramatic gains ahead. Now, with a manufacturing partner that has the ability to meet demand, the value proposition is only growing!

What Do You Think?

Where do you think PRPO is headed moving forward? Join the discussion in the comments below!

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