I published a detailed report about Precipio Inc (NASDAQ: PRPO) on April 9, 2019, just a couple of weeks ago. Those who read the report know that I have a very bullish stance when it comes to the stock. Nonetheless, since the report, there has been a major development.
PRPO is now working to take its products to the global stage, and the way that they’re doing it is likely to yield some serious results. Here’s what’s happening with the global expansion.
PRPO Announces Global Expansion Strategy Launch
The expansion plans started with an announcement that took place on April 18, 2019, when Precipio announced that it was bringing Ori Karev into the management team. In fact, Karev joined the company as the Chief Strategy Officer.
This was an important move as Ori Karev has a long history in healthcare. In fact, he was recently the CEO of UnitedHealthcare Global, a subsidiary of the world’s largest health insurance provider, United Healthcare.
At UnitedHealthcare Global, Mr. Karev helped the company to expand operations to more than 100 countries, employing more than 1,000 FTEs. Nonetheless, that isn’t the only expertise that Ori brings to the table.
In fact, Mr. Karev has more than 30 years of executive experience. His strong history of success also ranges across multiple industries, including healthcare, insurance, and mobility.
The Expansion Strategy Commences With Mr. Karev At The Helm
In a press release issued on April 24, 2019, PRPO announced the launch of its global expansion strategy. In the release, the company said that the expansion strategy will begin with efforts in India, China, Malaysia, various European countries and the gulf countries in the Middle East.
However, it’s important to mention that the company isn’t just blindly entering these markets. In fact, that’s where the appointment of Mr. Karev comes in. Think about it. If you’re going to expand into the global healthcare market, wouldn’t you want the guy that helped United Healthcare do just that?
At the end of the day, Mr. Karev’s rolodex and relationships are likely worth his annual salary times 20! In fact, just six days after his appointment as Chief Strategy Officer, we’re already seeing doors open.
In fact, according to the press release, Ori is already starting discussions with key players. Here’s a snippet from the release that outlines these efforts:
Led by Ori Karev, Precipio’s recently hired Chief Strategy Officer, Precipio has already launched discussions with leading hospitals, healthcare providers and regional health insurance carriers to discuss the implementation of Precipio’s model in their respective countries.
The Global Market Potential Here Is Impressive
In the press release, PRPO said that it plans on launching global expert pathology services. While these services have been offered internationally on a limited basis for some time, the company now aims to access this market on an institutional level with various global partners.
According to the company’s estimates, the market opportunity for these efforts is one that could be a billion dollars annually. This figure was come to by estimating the patient population with the financial ability to pay for these services in the countries that are currently being targeted.
Moreover, Precipio said that it intends on offering certain international partners access to various proprietary technologies. These include:
- ICE-COLD PCR – Precipio’s liquid biopsy technology.
- IV-Cell – The company’s cytogenetics media.
- HemeScreen – A proprietary advanced molecular screening panel.
According to the release, the annual available global revenue potential for each of these technologies could be over $50 million. With that in mind, the global expansion is addressing a market with the potential to generate more than $2.5 billion annually.
For a company with a market cap of under $25 million, successfully taking even a small portion of the more than $2.5 billion that’s up for grabs would be a significant achievement. Of course, this could lead to strong growth in value for the company and its shareholders.
While my report on April 9, 2019 announced my bullish view of Precipio, a lot has changed. With Ori Karev joining the team and the company working toward a global expansion, the potential for growth here is incredible! If you’re not involved yet, it’s time to start diving in!
What Do You Think?
Where do you think PRPO is headed moving forward? Join the discussion in the comments below!