Precipio news about the company signing a deal with hospitals in Egypt.
Precipio (NASDAQ:PRPO) says that this deal has it signing its first major international services contract. This contract is with a health care management group that serves multiple hospitals in Cairo, Egypt.
The Precipio news will have the cancer diagnostics company offering its pathology diagnostic services to these hospitals. It will also be providing them with access to its proprietary technologies that it develops.
This Precipio news also includes the company’s expectations from the deal. That includes the company expecting “significant first year revenues” from its ICE-COLD PCR technology and HemeScreen for hematologic molecular testing. Precipio says that it will be expecting these tests to become available in Egypt by the end of the second quarter.
Precipio says that it is expecting other benefits from this deal as well. Among these is an early estimate that H2-2019 gross margin will improve by 20 points to 25 points. It is also expecting to see cash burn decrease.
“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,'” Ilan Danieli, CEO of PRPO, said in the Precipio news release. “The international segment of our business is going to be a valuable contributor to our revenues, margins and cash flow in the coming quarters.”
PRPO stock was up 4% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
