PRPO - Earnings call transcript Q3 2018

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Operator

Good day everyone, and welcome to Precipio's Third Quarter 2018 Corporate Update Call for Shareholders. Please note, that this event is being recorded. And I would now like to turn the call over to Miri Radomski. Please go ahead.

Miri Chiko-Radomski

Thank you very much, and good afternoon, everyone. call statements this our during made contain about forward-looking business. Statements

future the forward-looking forward-looking statements do is whether as date including only or statement of earlier including Annual year subsequent except is These meaning. assumptions information Risks events the obligations information, on not Form with materially or well factors available XX-Q estimate, the our and similar continue are on to or risks any as and otherwise, Exchange in in be under of terms to Commission, identified our our include by cause risks place or undertake may, limited law. are statements XX-K should for or as these statements from which information Exchange statement to and belief, Securities matters such are should, but Statements XXXX, uncertainties. with Form an forth Report reports speak forward-looking risks current differ are any indicated, provided and at significant uncertainties words other undue XX, as unless other forecast and and by our upon You the actual anticipate, our may negative based detailed not for terms on set could, forecast, reliance as any Securities to Quarterly could statements www.sec.gov. forward-looking December and listed on expect, the predict, These in they XXXX, plan, we XX, not to filings that of subject potential, are these date results and publicly the expectations, required new September as update Commission. words file those and will, Report statements intent, ended result

call Precipio's to Now, over CEO. let Ilan, me the hand

Ilan Danieli

sent shareholders all I the questions to do Good best thank Thank advance. that period with the everyone to throughout in joining that appreciate you, afternoon, Mary. communicating also for call. have company We'll this the questions those our everyone. call. been those in address throughout like I'd our and

So aspects technologies side discuss I'll aspects our continue of I'll we several three state and address business. status of our new call, on the of the Liquid with commercial have where our start Pathology key the offering, today's of Biopsy Services, and to develop. we'll the business; the

financial the proxy address around the that, lastly, Following CFO, we some share aspect to to Carl, grow. capital And of our insight needs the statement and the pertaining some our price will continue recent as the in I'll company. company's provide strategy into of matters the

ICE-COLD flagship begin let's technology, ICP. PCR, with So known as our also

of launched the side lung we assay Only with product start quarter, two have ICP. and resistant our on team Over ICP indeed a of past XXXX, progress development significant on first of covering customer's gene. our lung, patients cancers genes; the make up needs. will continue cancer cancer and relevant throughout melanoma to colon, XX within to these are one-third exons population. and cover more panels line pancreatic we our the Today, X the the with almost to panels made EGFR ago meet product year a which patient test, XXXX has since mutations This X expand patients single

announcement XXX with exceeding grow partner make in business. ICP to $X.X Perkin billion, more develop customers a our Elmer with terrific and major So annual and over of robust a the of countries dollar multi-billion a better needs, that market and appeal this We've no is meets in more technology what the this mean? industry the Elmer. our to evidence recent is space with relationship appealing Perkin market for in our and they player, than does customer's the to invested there offering becoming leader is a revenues

agreement One offering together biopsy's; extraction technology selected liquid cell-free ICP Perkin of growth a by DNA was has their those interest of robust indicator of enrichment a of it's a strategic which technology. not committed and revenue because is This Perkin are extraction Elmer. first DNA field the and the a already provide to Perkin is place areas I Elmer in two complementary expand their with potential the of will this but technology the enables for have in strong capabilities ICP within is strong relationship liquid definitely demonstrated as competitive co-marketing various have announced to selection the joint the DNA first their combination overestimate The which strong recently labs the diagnostic customers indicator been technology. cannot efforts. collaboration ideal has their to to their that of ongoing valuable companies Both the and market that biopsy. step our technology building enrichment importance we in is a elements as a

hundreds liquid several Elmer While between several on dollars in ICP new we there from a XXXX to of in Precipio a biopsy current the agreement revenues other Perkin market, partnership companies penetration substantial with estimate the and customers working future market. we're several on potential of resulting begin to we the potential of from billion share Perkin capture and into we market growing growth translate as this The channels and $X with various with technology the million to Perkin rapidly of years is revenue. within is commercialize the it that collaborations develop Elmer future plus as first significant with

onwards. on which upcoming a significant biopsy top on on in working various product develop sales months further believe effective to more our build to liquid Alongside technology cost We the be medicine. invest channels precision In vision line patients. ICP leading the path expand the we're other and addition, applying effective becoming tend we're channels, develop and a liquid our and on international market and for commercialization to and have cancer of to technology and impact of biopsy go-to-market targeted patients monitoring continue into enable strategies executing bring liquid hopefully we We cost domestic announced on to both the will will to and within in in several XXXX that, the and continue which offering needs will the bottom cancer on broadest to address the manner. company our to space sales to biopsy

Moving to our quarter sales the our the during top have hired notch individuals. business; last we Pathology side to of in invest force continue and

side new our teams in continued previous from we from I'd million customer also pathology of this growth quarter. moment rates, the services alone to the strategic by our the contributed and services, of with not conversion strong XXXX. XX-member pathology of of the business growth value recently resulting exceeding the services elaborate $X rapid pathology to this Our of to strong only expect with a substantial in base a contribution our the but XX% in take announced we side middle have With we've like quarter as see revenue a growing on close QX to of on revenues and revenues from value customers per pipeline business.

R&D various of we the those experienced to and receiving their a technologies the elaborate challenges a created come During where the these on solutions challenges. quarter with recently, lab. patient specimens two IV-Cell more I'll laboratory technologies these R&D to these in country world, important present hundreds which around we our We market and were from to cases department team HemeScreen; around status gained our moment; up internally the and engaged that's in challenges ourselves in first-hand the to XXXX, we CLIA as introduced access

and this of result these sales through our process, we're undergo is able extensive a speak As HemeScreen customers, made were IVC technologies, solutions created; which through were force, to once validation CLIA to Furthermore, the possible workflow through rigorous needs. market the testing verify developed, identify lab. the ongoing and explore new they and our coming

a then at explore launch or testing team companies and as opportunities the other real commercialize our to market problems and technology to that for are in technologies. technologies. the platform of business market company; in developed it we services only marketing the In the as commercial these of revenue for market serves we're may both work other based and and develop side serves they R&D Once on new confident positive While not the that words, rather aspects, applicability, these the deliver technologies pathology ensure and also solutions. tandem proceed we've vacuum generator

So let's with technologies start discuss the that, new IV-Cell, our of with to media. And proceed pipeline. some in we'll cytogenetics proprietary our

validate a in reputable as the then the than strategy possible technology. enables culture in the the of a driver a we X validation the this fact current technology learned to laboratories culture proceeded, with of good this [ph] commercializing us partner was only As in reminder, of this the external to their help commercialization it external and the The year without technology academic University Pennsylvania, with able which on X out news rather to to one see in reaching lab slowly received own and -- a that is samples cell IV-Cell with to reagent us validation. Earlier connected accuracy. simultaneously diagnostic available announced limits the us significant media parties that the technology market IV-Cell were of cell Interested works. trial test we X lineage; select medias all to partners laboratory was was

strides with is our to for news I'm study So has near and this we're in clear aspect the of in study We been value business cases you to both interested of great outside ongoing with commercialization process with IV-Cell towards academic exciting believe our sharing proceeded party. be The making internally and the waiting for realization looking parallel hundreds forward of lab, completed. to and the in rather the future. of value than demonstrated the

this developed volume And alternative, capture plan new and lab in XXXX of me business. And CLIA in other market I internally, thoughts. to increase and from In in to CLIA excess suffered turnaround partnerships to market R&D to received a not combined following the in we've $XXX generate little we it collaboration. between can it the sales represents years. announced some quarter, in from born our financial We we've our let new now, of and the run a has with launch high first tested new perfect to licensing Carl? a response currently summary test opportunity. of a U.S. another ago, sales -- lastly, a backbone given and potential executing the we've [ph]. give far will to positive. long a and and internally, commercialize revenues doors driven revenue orders the ICP with This side model grow test, time, the saw effort, which numbers million a Since which pathology by the current and the to of and million used that this of to insight team lab, partners solution. is development team rapidly final numerous working technology new technologies. the we cost we're customers over $X CLIA already in creates now market During only continues lab, of strong including proprietary existing continue pipeline Perkin also weeks execution more test portfolio from HemeScreen; problem, HemeScreen thus launched Carl our an commercial and and orders interaction market on opens that tracking tested We grow return new we received share Pathology our will the test of physicians. to The been two continue HemeScreen services inferior as technology cases the on frustrations sought and Elmer the begun created laboratory also believe sales externally. called already generate of numerous channels R&D to product the the our turn that on a we customers, extremely find evidenced

Carl Iberger

also challenging been Carl has but Good you, said, the afternoon. Thank quarter From that time the QX company, an been is Ilan. a perspective, extremely the company. QX very Chief Financial for Precipio. productive Iberger, with for This financial has Officer for

Ilan I'd diagnostic performance. some done located Yeoman's benefit identify from regarding as first our organization the discuss work shareholder during has to reviewed; group that and and productivity will New financial Connecticut. team, productivity in has Haven, From like items sales call, come our [ph] R&D Each our side, then our upcoming lab QX the the challenges. For specific highlights

solving First, incorporate the deliver while commercial is key environment. key in and be solve solution the is this in is bill IV-Cell side demonstrate products ability and production and enhanced to should services lab and lost R&D environment, rewarding, HemeScreen testing to problems diagnostic on to highlighted, point technology the that revenue proprietary problems in solutions that discussion a profitability. not a our be net and the to a able A

HemeScreen significant So benefits expect we coming and from both, IV-Cell.

group; the market. accounts our concentrating sales new the team focusing has numbers our sales in in rates. market We've gaining steadily significant our grown and not size account share. Second, improved increasing closure traction the on on reps but QX on in only We're are seen

sales pathology this with XXXX, we continued accelerated rate For have we're pleased acceleration in for quarter-over-quarter, and look QX. growth

at of Third, will cost have to to molecular we lab New goods. will of the have the expansion I'd immediate all incurring X for our here X testing on it management quarters, point or impact Haven. capabilities. but eliminate internally expanded need This the outsourcing lab and successfully In it's like success an last expensive QX diagnostic very the for that lab in-house

company ongoing our cash burning considerable and to flow near-term, million. have million through to of continue periods. but million an and $XX initiative equity. and the In need financing are merger and grow And focused challenged of streams commitments. we leverage at Operationally, deliver force we still had still are business, the investment to of payables, are funding we XX developed are liabilities to combination at considerable recognize that from will million accelerating a manage from $XX we the HemeScreen sales ago IV-Cell. and secure strategy. new turning combination expenses on R&D operating however, and in passed QX, a approximately we've we stands We've grow and company as gap debt closing months the Now, are initial end to sales, cash; with $XX the of challenges; also and while to balance made sheet. grow These our approximately additional laser from we the sales to rose form that priorities. we Today, the the deal now $X.X on the look revenue the debt technology of progress

agreement. the SI line executed QX, equity million $XX a company During purchase

debt Our required include financing. in the utilizing as and SI bridge form current needed, plans as the potential of

We until are would discussion now and feel on cash turn Ilan. work XXXX. an revenues back increase we monitor our in QX, that focused we ongoing the QX that can basis in on to through comfortable of to I flow, and we like

Ilan Danieli

Carl. challenging an have you, landscape want job mission. execute to And you thank Thank our team us to enable and the and your I our financial for incredible doing at the resource to company managing on of

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several shareholders. end to timing However, and shareholder the management There why interest the the the ready wait questions our special have feels acted to and until important first were we is upon needed, and the if meeting option of surrounding the company didn't available quarter. be the in it of best of

are the to by the would continue of and business. can cut be with shareholders could deadline process unnecessary which at provided in their on speculations and the very focus vote. review there time and for with it's you and on the management XXXX act initiating to submit pressure adhere in felt end Management that the Instead, avoided. building company of the ample the addition the various timelines option the NASDAQ, company to interest and the of uncertainty for process, proxy must that shareholders, first order the those to provide not with to For the close to the felt of familiar company the to the company creating best company in quarter shareholders

In summary, in adjournment meeting of in meeting for in In see our such also qualm and the sprout, if beginning hold as be allow earlier accordance progress to flexible to previous new is with nice addition, called not of that rather wanted order Perkin special seeds made meeting present timeline. for it's than to the company we later [ph] has strong the only potential quarter, planted to some to a Elmer. we've the ensure are not the necessary the

each changer advances to a our moving can; why technology price business does a and the team's to into ideas the perceive myself reflect our grow currently I've and to in as continue company value. financially is value my of day-out from to and point believe dollars; team on understand while a which are now front demonstrated has stock that plan. make perspective, just which We clinical and the have on self-sustainable. described translate the of every we pace, it not What one-trick technologies rapidly From will three towards at B) is the additional still it's economic we A) a commercializing ICP goals the management job we to into translating to also need be. healthy we that market, not continue company committed develop to we where member continue day-in company substantial to at we're demonstrate execute pony, and and are the game working Our consistently that strongly utility C) and the them, be hard

we've one keeps patient as my case story of, like to while a and etcetera, that take price exists, reminding me help this things of share call; this company's [ph]. important important others revenue, team of discussed I'd to the that Lastly, share it's on remember we care received; Our-Why we call cases a partnerships, are the we've all why our many recent success, critically this the to company

and the that the occurs than the recently treatment we've academic lymphoma; populations and diagnosed evening, is work biopsy by reason take identified is doctors point previously Japan. every a diagnosed on was morning was everyone some hard, your NK-Cell neighbor; moment with What are The patient when different and do, try expected to support you. incorrect rare the I the passion, it an next few received diagnosis your in been is to review Thanksgiving. importance case leukemia. people million like and forward the to Our-Why treatment subsequent for primarily wasn't the this up imagine at all This none Thank extremely working call. the they is leukemia that get to of the was this relative, a [ph]. in thank what motivated for this treatment diagnosis happy within turned type one the to finding. of called this you look close in so entirely all you, I this the might of you and We for you the to we was China a of receiving. I'd to patient far experts, we of patient has job, our leukemia X or with than biopsy speaking if friend careful each and one in a patient continued a someone interest well So and the after that of and and us. and everyone Wishing us is of want as a which see be doing is wasn't nice company, a with received our

End of Q&A

disconnect for has conference The today's you attending presentation you lines. your concluded. now Thank now and may

Precipio (PRPO) 19 Nov 182018 Q3 Earnings call transcript