Precipio (PRPO) investor relations material

Key milestones and financial performance

• Achieved profitability as of Q3 2025 after a strategic shift away from capital raises, with projected 30% revenue growth and a 275% share price increase by that quarter.

• Ended 2025 with a $25 million run rate, with 90% from legacy lab services and 10% from products.

• Products business expected to grow rapidly, shifting mix to 60/40 in favor of products over the next 3–5 years, with recurring revenue growth anticipated to drive gross margins above 50% long term.

• Expansion into cancer genetics and molecular diagnostics is expected to increase total addressable market from $0.5B to $43B over five years.

• Current capacity allows for $50 million in annual product sales, with minimal investment needed to double.

Product innovation and clinical impact

• Developed a rapid four-hour AML genetic test and a 4-hour CAML test for Acute Myeloid Leukemia, enabling same-day, targeted treatment and improved patient outcomes.

• Platform addresses misdiagnosis and diagnostic delays, with 25–40% of patients affected and typical molecular testing turnaround times exceeding 10 days.

• Products offer simplified workflows, lower labor skill requirements, reduced capital equipment costs, and faster results compared to competitors.

• Rapid product development demonstrated by BCR-ABL assay, developed in three months for under $100,000.

Business model and operational strategy

• Operates both a profitable clinical lab and a diagnostics R&D division, leveraging in-house samples for rapid, cost-effective innovation, with the clinical lab fully funding R&D.

• Free R&D platform due to integration with clinical operations, reducing development time and cost.

• The company is the first customer for its own products, leveraging hands-on experience to optimize workflow and customer training.

• National distribution partnerships with major healthcare channel partners like Thermo Fisher and McKesson provide broad market reach and go-to-market efficiency.