Receives New $750,000 Project from Existing Pharmaceutical Client
NEW HAVEN, CT / ACCESSWIRE / October 10, 2017 / Precipio, Inc. (NASDAQ: PRPO), announced today that it has completed the post-merger consolidation of the Transgenomic CLIA lab formerly located in Omaha, NE, and moved all CLIA and Pharmacological Research Projects to its New Haven, CT CLIA laboratory. As a result of the transition and consolidation, the operating costs associated with maintaining these facilities will be reduced by approximately $0.5M annually. During the transition process, which took approximately four months, Precipio succeeded in maintaining all of its clients, and its pharmaceutical company client-related revenues. The remaining, smaller laboratory facility in Omaha will now focus exclusively on the continued research & development of ICE COLD-PCR liquid biopsy technology.
In addition to completing the consolidation, Precipio has signed an agreement with an existing pharmaceutical client for an additional research project that the company expects will generate $750,000 in revenues over the course of the project, planned to commence in the fourth quarter of 2017.
"One of our main operational objectives during this merger was the consolidation of the two CLIA facilities into one," said Ilan Danieli, President and Chief Executive Officer of Precipio. "Our goal was to complete the move and integrate with our existing laboratory operations in Connecticut by the end of the third quarter of 2017, without compromising the services we provide to our customers. I am delighted to report that we achieved this on time and without any material disruption; and we also received new projects during the transition, which will commence in the fourth quarter. While the company saw a temporary decline in revenues due to the transition hiatus, this new pharma project will, on its own, generate revenues that exceed our second quarter revenues. I want to congratulate our team who was so instrumental in making this transition happen, while not skipping a beat taking care of our customers."
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, initially the Yale School of Medicine, 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 Precipio's merger with Transgenomic, consolidation of laboratory operations, reductions of accounts payable, 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.
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SOURCE: Precipio, Inc.