This is Why Shareholders Are Fired Up About Precipio Stock

Once left for dead, Precipio Inc. (NASDAQ:PRPO) has shown big signs of life.

Woman surgeon with cap and face mask
Source: iStockphoto

Since bottoming out at 58 cents in April 2020, the PRPO stock is now up to $3.71.  From here, I’d like to see the stock test a prior high of about $9.20, especially with its rapid coronavirus test for sale on Amazon.com (NASDAQ:AMZN).

Granted, coronavirus cases are steadily decreasing. However, testing, even for immunized folks, will remain essential.  After all, according to McKnight’s Long-Term Care News’ contributor Alicia Lasek. “Vaccines do not provide 100% protection against the virus, and in rare cases, people who are fully vaccinated may still develop the disease. Those so-called breakthrough cases may be driven by rapid virus changes, and ongoing testing of immunized individuals will be necessary to help prevent future outbreaks, researchers say.”

The last thing any of need is another outbreak of this virus.  So, it’s likely testing will stick around for some time, fueling stocks like Precipio.

Precipio Stock Soared on Amazon Deal

The company has a good deal of positives.

For one, it was first to be granted US FDA emergency use authorization for its 20-minute antibody test.  Two, its tests use receptor binding domain (RBD), which can reportedly be used for detection of coronavirus-specific antibodies, as noted by a medRxiv report on the National Center for Biotechnology Information (NCBI) website.

Three, its tests appear to be highly accurate in detecting Immunoglobulin M (IgM) antibodies.  In fact, according to Precipio, IgM develops first and can indicate immune response. Immunoglobulins (IgG) can also be detected in six days following the virus onset.

“The purpose of COVID-19 IgM & IgG serology antibody testing is to determine whether a patient has been exposed to COVID-19 and has potentially developed immunity. Patients with COVID-19 specific antibodies developed through previous infection or vaccination can test positive for IgM, IgG or both,” added the company.

Even better, the company has seen interest after launching its antibody test on Amazon.com to medical providers.

Earnings Haven’t Been Too Shabby Either

The company saw 95% annual growth year over year.  It also saw 180% quarterly growth year over year, as well.

For full-year 2020, the company saw revenues of $6.1 million, a year over year increase of 95%.  It also saw fourth quarter revenue growth of 180% year over year to $1.9 million.  In addition, for the fourth quarter, gross profits came in at $500,000, an increase of 27% quarter over quarter.  For the full-year, gross profit came in at $1.2 million, an increase of $900,000.

More than Just Coronavirus Tests

While the coronavirus news is certainly a big deal, it’s not all Precipio does.

The company also offers:

  • HemeScreen for Physician Office Laboratories (POL) is screening technology used for rapid, and cost-effective diagnostics. The company launched a four-hour Acute Myeloid Leukemia HemeScreen panel that can determine the genetics of the cancer, as noted in a press releaseThe company added, “There is no other product or technology in the market that can provide this access to rapid results within a POL setting.”
  • IV-Cell universal culture media is a Research-use only (RUO), ready-to-use, fully supplemented medium developed specifically to support bone marrow and peripheral blood cell culture for in vitro cytogenetic analysis of hematological disease,” as noted on the company’s website.
  • Its “ICE COLD-PCR technology preferentially enriches mutant DNA sequences in an excess of wild-type DNA through selective amplification of the mutant DNA,” as also noted on Precipio’s site.

The Bottom Line on the Precipio Stock

There are a good number of positives here.

For one, since bottoming out at 58 cents in April 2020, the PRPO stock is now up to $3.71.  That was good for a return of about 540% to date.  From here, I’d like to see the stock test a prior high of about $9.20.  Two, testing for the virus is here to stay, as a way to prevent future outbreaks.  Three, its antibody tests appear to be highly accurate, and sell on Amazon.com.  Also, while the test is only available to medical personnel, the Amazon.com listing is still a big deal.

From here, we’ll wait to hear what the company says in its corporate update on May 20.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


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