Precipio PRPO Stock News

Precipio Inc (NASDAQ: PRPO) is a company that I’ve been following closely as of late. For those of you that haven’t gotten familiar with the company, check out my detailed report here.

Nonetheless, the company made an announcement today that could prove to be a game changer. In a press release early this morning, the company said that Mr. Ori Karev has joined the company as its Chief Strategy Officer. However, this update is about far more than management as it suggests that an aggressive global expansion effort is in the near future. 

As a result of this, my already bullish view on Precipio is only serving to be validated further. Here’s what’s happening:

Who Is Ori Karev? 

Ori Karev is a healthcare expert that just about every company in the space would want on its side. In fact, he brings 30 years of executive experience in the healthcare, insurance, and mobility industries to Precipio. 

Most notably, Mr. Karev held a position as the CEO of UnitedHealthcare Global. This is the International division of United Healthcare (NYSE: UNH), which just so happens to be the world’s largest health insurance provider. 

In his position at UnitedHealthcare Global, Ori expanded operations to more than 100 countries, employing more than 1,000 FTEs (the number of full time employees a company has including part time employees whose hours have been converted to full time). This included the establish and management of partnerships in various countries including China, Japan, Korea, England, Portugal, and the Philippines. He also oversaw multiple mergers and acquisitions in his role. 

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Considering his long record of success for UnitedHealthcare Global and other companies where he held executive positions, the value that he brings to PRPO and its investors is hard to argue against. 

Why This Has The Potential To Be A Game Changer!

The fact that Ori is joining the team in and of itself is great news. However, it’s not the big news in this release. The big news is why PRPO brought Mr. Karev on board and the aspects of the role that he will be playing as Chief Strategic Officer. 

At the end of the day, Precipio intends on taking its products to the global stage. Who better to have on your side than the man that did just that for United Healthcare! In fact, in the press release, Precipio outlined Mr. Karev’s responsibilities as the following:

  • Working with the PRPO senior executive team to develop and execute its expansion strategy both domestically and globally.
  • Take advantage of his “vast professional network” to seek and initiate new relationships with various healthcare organizations around the world that have been exploring the adoption of some of the company’s technology. 
  • Enhance the company’s existing domestic market penetration activities. 
  • Work with leading US health payors in order to identify optunities where PRPO may be able to deliver beter outcomes at a lower cost. 

While most of this had to do with a domestic strategy, where Ori is clearly well prepared to provide meaningful leadership, there was one key quote in the press release that made me think of bigger picture:

In the coming months, Precipio intends to launch its global initiatives, delivering the highest quality pathology services to clinicians and patients, worldwide.

At the end of the day, the company is looking to launch into the global diagnostics market. By 2026, the global cancer diagnostics market size is expected to grow to be worth nearly $250 billion annually with a 7% CAGR.

As the company enters into this vast market, Ori will be breaking into his rolodex, likely opening doors in China, Japan, Korea, England, Portugal, and the Philippines as he did for UnitedHealthcare Global. Moreover, his work in the insurance sector will open the door to long-standing relationships that he has built, likely increasing coverage of the company’s diagnostic tests. 

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Ultimately, PRPO plans on an aggressive expansion, both on a domestic and global level. The company realized the value that a veteran could bring to the table, and brought Ori on board. This was an overwhelmingly strong move that I believe will lead to strong growth in sales and value creation for investors!

Final Thoughts

Since I started following PRPO, there has been sever bits of strong positive news that have been released. However, today’s news is likely the biggest. 

The fact that Ori is bring brought into the company at this stage in the game is incredible news. At the end of the day, in many cases, who you know can be just as important as what you know in any industry, and Ori’s rolodex is an incredible one. With vast experience and great relationships, Mr. Karev is likely to bring PRPO to the next level. 

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