Precipio(PRPO) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported significant progress in Q2 2020 despite the challenges posed by the COVID-19 pandemic, indicating a focus on growth and adaptation [5][31]. - The diagnostic services side of the business is expected to improve margins as volume increases, driving cash flow towards profitability [11][18]. Business Line Data and Key Metrics Changes - The pathology services segment has seen growth due to the successful integration of Oncometrix customers and the addition of new clients [10]. - The product side of the business, including technologies like IV-Cell and HemeScreen, is being commercialized, with expectations of substantial revenue shifts between diagnostic services and product sales in the next 12 months [18]. Market Data and Key Metrics Changes - The company is actively engaging in the COVID-19 testing market, having partnered with ADS Biotec to distribute FDA authorized serology tests, indicating a strategic pivot to meet market demands [24][30]. - The company is currently capable of producing 1 million tests per day, positioning itself to meet potential future demand as the FDA expands EUA for point-of-care and self-use tests [30]. Company Strategy and Development Direction - The company aims to leverage its COVID-19 testing initiatives as a means to generate shareholder value while maintaining focus on its core business [31]. - Strategic partnerships are being explored to enhance the market introduction of products like IV-Cell and HemeScreen, aiming for rapid adoption and distribution [15][18]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenges posed by the pandemic while capitalizing on new opportunities in the testing market [32][33]. - The company believes that the next steps in reopening the economy will involve expanded testing capabilities, which aligns with its strategic goals [26][29]. Other Important Information - The company has developed a strong pipeline for HemeScreen, targeting physician office laboratories, which have been seeking to improve service quality and efficiency during the pandemic [17]. - The management emphasized the importance of adhering to FDA guidelines and processes in the development and marketing of their COVID-19 tests [28]. Q&A Session Summary Question: What is the company's strategy regarding COVID-19 testing? - The company has partnered with ADS Biotec to distribute FDA authorized COVID-19 serology tests and is focusing on leveraging its existing customer base for initial rollout [24]. Question: How does the company plan to handle the production and distribution of tests? - The company is currently capable of producing 1 million tests per day and is preparing distribution channels for potential expanded use of the tests [30].