Precipio Signs Distribution Agreement For IV-Cell® and HemeScreen® in Japan
Precipio, Inc. (NASDAQ: PRPO) has announced a new agreement with a Japanese distributor for the sales and distribution of its IV-Cell cytogenetics media in the Japanese market. The distributor has secured the first purchase order from a leading Japanese clinical laboratory, with the first shipment expected by the end of Q1-2024. This marks a significant expansion into the Japanese diagnostic market, known for its high quality standards and rigorous product scrutiny.
The entry of Precipio's IV-Cell into the Japanese market represents a significant milestone for the company. Japan is known for its stringent quality standards, especially in healthcare products. The fact that a major Japanese laboratory has placed the first order is a testament to the product's quality and the potential demand within this new market. This expansion can be seen as a strategic move to diversify Precipio's revenue streams and reduce dependence on its domestic market.
For investors, this development could signal potential growth opportunities. However, the scale of impact on Precipio's financials will depend on the volume of future orders and the ability of the company to maintain a strong supply chain to meet the demands of the Japanese market. The long-term success will also hinge on competitive pricing, continued product excellence and effective management of international operations.
The announcement of Precipio's distribution agreement and subsequent first order from a Japanese laboratory is likely to have an immediate positive impact on the company's stock. Investors typically respond well to expansion news, especially into markets that are perceived to have high barriers to entry like Japan. The deal could lead to increased revenue projections for the upcoming quarters, which in turn could affect the company's stock price and market valuation.
However, it is crucial to monitor the company's cost of sales and operating expenses associated with this expansion. While the initial order is promising, the profitability of this venture will be clearer once the costs of establishing and maintaining the distribution channels and any potential regulatory hurdles, are factored into the financial analysis.
IV-Cell cytogenetics media is a specialized product used in the diagnosis of cancers through the examination of chromosomes in cell cultures. The adoption of IV-Cell by a Japanese laboratory indicates recognition of its technical efficacy. This is particularly important in a field that is highly sensitive to accuracy and reliability. The successful penetration of IV-Cell into the Japanese market could pave the way for further research collaborations and enhancements in cytogenetic testing methodologies.
Considering the global cancer burden and the critical role of diagnostics in treatment planning, Precipio's expansion into Japan could also have implications for international standards in cancer diagnostics. If IV-Cell is adopted widely, it may influence regional testing protocols and potentially lead to broader adoption in other markets that look to Japan as a benchmark for quality.
01/17/2024 - 10:30 AM
First order for IV-Cell placed by Major Japanese Laboratory
NEW HAVEN, Conn., Jan. 17, 2024 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO)
The Japanese diagnostic market is renowned for its high level of quality and for its intense scrutiny of products. Precipio was approached by a Japanese laboratory with an inquiry about its IV-Cell media, and entered into a testing period to evaluate the product.
The laboratory conducted extensive testing of Precipio’s IV-Cell cytogenetics media, including a comprehensive side-by-side analysis comparing it to the current media used in their lab. The study, results of which were shared with Precipio, demonstrated the superior performance of IV-Cell, and ultimately resulted in their decision to adopt the media in their laboratory.
The laboratory then appointed a distributor to handle negotiations with Precipio, resulting in a distribution agreement for its products within the Japanese market. The parties have entered into a multiple year commitment, with the intent of forming a long-term relationship to leverage the distributor’s network within Japan to distribute Precipio’s current, and future products, and bring diagnostic advancements to a broad range of customers in the Japanese market.
“There is no greater demonstration of the quality and clinical utility of our product, than its acceptance by a premier lab in Japan. I’m extremely proud of our R&D team that has successfully created a product that will be used in such a prestigious international market,” said Ilan Danieli, Precipio’s CEO, “Furthermore, our entry into the Japanese market underscores the effectiveness of our overseas sales & marketing strategy. I expect that in 2024 we will also see penetration into other markets globally, complementing our domestic growth in the US market.”
About Precipio
Precipio is a healthcare biotechnology company focused on cancer diagnostics. Our mission is to address the pervasive problem of cancer misdiagnoses by developing solutions in the form of diagnostic products and services. Our products and services deliver higher accuracy, improved laboratory workflow, and ultimately deliver better patient outcomes which reduce healthcare expenses. Precipio develops innovative technologies in our clinical laboratory where we design, test, validate, and run these products intended to improve diagnostic outcomes. Precipio then commercializes its technologies as proprietary products that serve the global laboratory community and further scales Precipio’s reach to eradicate misdiagnosis. For more information, please visit www.precipiodx.com
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What is the latest announcement from Precipio, Inc. (NASDAQ: PRPO)?
Precipio, Inc. (NASDAQ: PRPO) has announced an agreement with a Japanese distributor for the sales and distribution of its IV-Cell cytogenetics media in the Japanese market.
Which market is Precipio, Inc. (NASDAQ: PRPO) expanding into?
Precipio, Inc. (NASDAQ: PRPO) is expanding into the Japanese diagnostic market.
What product has the Japanese laboratory placed an order for?
The Japanese laboratory has placed an order for Precipio’s proprietary IV-Cell cytogenetics media.
When is the first shipment expected to be delivered?
The first shipment is expected to be delivered at the end of Q1-2024.
What is the reputation of the Japanese diagnostic market?
The Japanese diagnostic market is renowned for its high quality standards and rigorous product scrutiny.
