Precipio, Inc. – PRPO

I’ve been watching the ebb and flow of the market, keeping an eye out for potential accelerated growth candidates and have identified a possible gem. This pick is Precipio, Inc. (PRPO).

This small cap company is in the business of providing cancer diagnostic products and services to the oncology market. Precipio is expanding the potential of its industry disrupting, innovative product kit, ICE-COLD PCR™ (ICP). From a recent press release, “Precipio’s ICP kit, our mutation enrichment technology for liquid biopsies, leads to better cancer outcomes due to the ability to cost effectively test and monitor patients using a simple blood draw instead of an invasive tissue sample.”

As of March 30th, the last few press releases have eluded to enormous revenue potential if developed PRPO tech is well-received by customers and the liquid biopsy community. The financial situation of Precipio may still be a bit hazy as they’ve completed the reverse merger with Transgenomic, assumed the litigations, and utilized a dilutive method for acquiring cash.  My concern is the company’s current burn rate may warrant another capital raise. How they go about raising this capital, if necessary, will be a key detail that potential shareholders should be taking into account.

What to expect ahead: The month of June looks to be the time when things should become interesting for the company. The company’s cytogenetics media IV Cell will be due for some external validation results from Penn state, which if good, should provide concrete ammunition for a potential out-licensing deal with a global leader in the reagents market. In the lead up to these anticipated events and the research I have compiled so far, I have a position in PRPO and expect a considerable return on investment given the risk.Time will tell!