Precipio, Inc. (PRPO): Business Model Canvas [11-2024 Updated]
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Precipio, Inc. (PRPO) Bundle
In the rapidly evolving field of cancer diagnostics, Precipio, Inc. (PRPO) stands out with its innovative business model designed to enhance patient care and streamline laboratory processes. By leveraging strategic partnerships with healthcare distributors and bio-pharma companies, alongside its proprietary technology, Precipio is poised to deliver unparalleled diagnostic accuracy. Dive deeper into the Business Model Canvas of Precipio, Inc. to discover how each component contributes to its mission of transforming cancer diagnostics.
Precipio, Inc. (PRPO) - Business Model: Key Partnerships
Collaborations with healthcare distributors like ThermoFisher, McKesson, and Cardinal Health
Precipio, Inc. has established significant partnerships with major healthcare distributors, including ThermoFisher, McKesson, and Cardinal Health. These collaborations are crucial for accessing a wide range of laboratories across the United States, enabling the distribution of Precipio's diagnostic products effectively. The partnerships allow Precipio to leverage the extensive networks and capabilities of these distributors to enhance market reach and operational efficiency.
Partnerships with bio-pharma companies for biomarker testing
Precipio collaborates with various bio-pharma companies to advance its biomarker testing capabilities. These partnerships are vital for enhancing the company’s diagnostic offerings and ensuring that they are aligned with the latest scientific advancements. Such collaborations also facilitate access to cutting-edge technologies and methodologies, which are essential for maintaining a competitive edge in the rapidly evolving diagnostic landscape.
Engagement with government health programs for clinical research funding
Engagement with government health programs has been a strategic focus for Precipio, allowing the company to secure funding for clinical research initiatives. This funding is essential for supporting ongoing research and development activities, which are critical for the advancement of Precipio's diagnostic technologies. The collaboration with government entities not only provides financial support but also enhances the credibility and visibility of Precipio's research efforts in the healthcare sector.
| Partnership Type | Partner | Focus Area | Impact |
|---|---|---|---|
| Healthcare Distributor | ThermoFisher | Diagnostic Product Distribution | Enhanced market access and operational efficiency |
| Healthcare Distributor | McKesson | Diagnostic Product Distribution | Increased reach to laboratories nationwide |
| Healthcare Distributor | Cardinal Health | Diagnostic Product Distribution | Improved logistics and supply chain management |
| Bio-pharma Collaboration | Various Bio-pharma Companies | Biomarker Testing | Access to advanced technologies and methodologies |
| Government Health Programs | Federal and State Programs | Clinical Research Funding | Support for R&D initiatives and credibility enhancement |
As of September 30, 2024, Precipio's financial performance highlighted the importance of these partnerships. The company's net sales reached approximately $13.1 million, a 20% increase compared to the previous year, primarily driven by a significant rise in patient diagnostic service revenue, which increased by $2.7 million. This growth indicates the effectiveness of Precipio's partnerships in driving business objectives and enhancing revenue streams.
Precipio, Inc. (PRPO) - Business Model: Key Activities
Development of innovative diagnostic technologies
Precipio, Inc. focuses on the development of cutting-edge diagnostic technologies aimed at improving the accuracy and efficiency of diagnostic testing. The company has been actively engaged in creating proprietary solutions that address the challenges of misdiagnosis. For the nine months ended September 30, 2024, Precipio reported a patient diagnostic service revenue of approximately $11.3 million, reflecting a 33% increase from $8.4 million in the prior year.
Operation of CLIA-certified laboratories for testing and research
Precipio operates fully staffed CLIA and College of American Pathologists (CAP) certified clinical pathology and molecular laboratories. These facilities are essential for conducting high-quality diagnostic testing and research. As of September 30, 2024, the company processed 8,745 cases, a 78% increase compared to 4,915 cases in the same period of 2023. This increase in case volume has contributed to a gross profit of approximately $4.9 million for the nine months ended September 30, 2024.
| Metrics | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) |
|---|---|---|
| Net Sales | $13.1 million | $10.9 million |
| Patient Diagnostic Service Revenue | $11.3 million | $8.4 million |
| Number of Cases Processed | 8,745 | 4,915 |
| Gross Profit | $4.9 million | $4.0 million |
| Gross Margin | 38% | 37% |
Marketing and sales of diagnostic products to healthcare providers
Precipio's marketing strategy includes forming partnerships with leading healthcare distributors such as ThermoFisher, McKesson, and Cardinal Health. These collaborations enhance the company's access to laboratories nationwide, facilitating the distribution of its diagnostic products. For the three months ended September 30, 2024, the company reported net sales of approximately $5.2 million, an increase of 15% from $4.5 million in the same quarter of 2023.
- Service revenue for the three months ended September 30, 2024 was $4.5 million, up from $3.7 million in 2023.
- Product revenue for the same period decreased to $681,000 from $831,000 year-over-year.
Precipio's sales and marketing expenses for the nine months ended September 30, 2024, decreased by $1.3 million, primarily due to a reduction in personnel costs.
Precipio, Inc. (PRPO) - Business Model: Key Resources
Proprietary technology for cancer diagnostics
Precipio, Inc. leverages its proprietary technology in cancer diagnostics, which includes novel diagnostic tests and platforms designed to improve the accuracy and speed of cancer detection. The company reported patient diagnostic service revenue of approximately $11.3 million for the nine months ended September 30, 2024, marking a 33% increase compared to the same period in 2023.
Skilled laboratory staff and research teams
The success of Precipio's diagnostics relies heavily on its skilled laboratory staff and research teams. The company operates a fully staffed laboratory that is CLIA and CAP certified. The increase in case volume, which rose by 78% to 8,745 cases processed during the nine months ended September 30, 2024, has enabled the laboratory to achieve economies of scale.
CLIA and CAP certified laboratories in Connecticut and Nebraska
Precipio operates CLIA and CAP certified laboratories located in Connecticut and Nebraska. These certifications ensure that the laboratories meet the highest standards for clinical testing. The laboratories are crucial for maintaining operational efficiency and quality in diagnostic testing. The company’s total gross profit for the nine months ended September 30, 2024, was approximately $4.9 million, with a gross margin of 38%.
| Key Resource | Details | Financial Impact |
|---|---|---|
| Proprietary Technology | Novel diagnostic tests and platforms for cancer detection | Patient diagnostic service revenue: $11.3 million (9M 2024) |
| Skilled Staff | Fully staffed laboratory with expertise in diagnostics | Processed cases: 8,745 (78% increase YoY) |
| Certified Laboratories | CLIA and CAP certified facilities in Connecticut and Nebraska | Gross Profit: $4.9 million (9M 2024), Gross Margin: 38% |
Precipio, Inc. (PRPO) - Business Model: Value Propositions
Delivering accurate cancer diagnostics to reduce misdiagnosis
Precipio, Inc. focuses on providing accurate cancer diagnostics that significantly reduce the rates of misdiagnosis, which is a critical issue in oncology. In 2024, the company processed approximately 8,745 cases in the first nine months, reflecting a 78% increase compared to 4,915 cases in the same period in 2023. Their diagnostics are designed to enhance the precision of cancer detection, which is essential in improving patient outcomes and reducing unnecessary treatments.
Improving laboratory workflow and patient outcomes
Precipio has implemented innovative solutions that streamline laboratory workflows. Their operational efficiency is evidenced by a gross profit of approximately $4.9 million for the nine months ended September 30, 2024, compared to $4.0 million in the same period in 2023, yielding a gross margin of 38%. By improving laboratory processes, the company not only enhances diagnostic accuracy but also contributes to quicker turnaround times for test results, ultimately improving patient outcomes.
Offering proprietary products that enhance diagnostic capabilities
The company offers proprietary products that boost its diagnostic capabilities, specifically in the realm of hematology and oncology. For the nine months ended September 30, 2024, service revenue, which includes diagnostic services, was $11.1 million, an increase of 33% from $8.4 million in the previous year. This reflects a growing acceptance and reliance on their proprietary technologies in clinical settings.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Cases Processed | 8,745 | 4,915 | +78% |
| Service Revenue | $11.1 million | $8.4 million | +33% |
| Gross Profit | $4.9 million | $4.0 million | +22.5% |
| Gross Margin | 38% | 37% | +1% |
Precipio, Inc. (PRPO) - Business Model: Customer Relationships
Direct support and education for healthcare providers
Precipio, Inc. emphasizes direct support and education for healthcare providers. The company processed 8,745 cases during the nine months ended September 30, 2024, representing a 78% increase from 4,915 cases in the same period of 2023. This increase is indicative of effective educational initiatives and support provided to healthcare professionals regarding the use of their diagnostic services.
Building long-term partnerships with oncologists and hospitals
Precipio has established partnerships with key healthcare distributors, including ThermoFisher, McKesson, and Cardinal Health. These partnerships form the backbone of their go-to-market strategy. The company aims to engage oncologists and hospitals through collaborative approaches, enhancing the accessibility and utility of their diagnostic products. This strategy is reflected in the significant increase in service revenue, which reached approximately $11.3 million for the nine months ended September 30, 2024, compared to $8.6 million in 2023.
Engaging with customers through ongoing feedback and product support
Precipio engages customers by soliciting ongoing feedback about their products. This engagement is crucial for maintaining customer satisfaction and loyalty. The company’s patient diagnostic service revenue increased by $2.7 million during the nine months ended September 30, 2024, driven by a greater number of cases processed. The feedback mechanism allows Precipio to adapt its offerings based on real-world usage and customer needs, which is vital for long-term sustainability and growth.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Cases Processed | 8,745 | 4,915 | 78% |
| Service Revenue (in $ million) | 11.3 | 8.6 | 31% |
| Patient Diagnostic Service Revenue Increase (in $ million) | 2.7 | - | - |
Precipio, Inc. (PRPO) - Business Model: Channels
Direct sales through the company’s commercial team
Precipio's direct sales efforts are driven by its dedicated commercial team, which focuses on promoting its diagnostic products and services. As of the nine months ended September 30, 2024, the company reported net sales of approximately $13.1 million, indicating a solid performance in its sales initiatives. The commercial team is integral in generating service revenue, which reached $11.3 million during the same period, a significant increase from $8.6 million in the prior year.
Distribution via partnerships with major healthcare distributors
Precipio has established partnerships with major healthcare distributors such as ThermoFisher, McKesson, and Cardinal Health. These partnerships facilitate the distribution of Precipio's diagnostic products across various laboratories nationwide. This network not only enhances market access but also contributes to the company's revenue stream by tapping into established distribution channels. For the nine months ended September 30, 2024, the company processed 8,745 cases, a 78% increase from 4,915 cases in the same period of 2023.
| Distributor | Partnership Type | Impact on Sales |
|---|---|---|
| ThermoFisher | Major Healthcare Distributor | Increased market access, contributing to overall sales growth |
| McKesson | Major Healthcare Distributor | Facilitates distribution of diagnostic products |
| Cardinal Health | Major Healthcare Distributor | Enhances reach to laboratories across the country |
Online platforms for service requests and results access
Precipio utilizes online platforms to streamline service requests and provide access to diagnostic results. This digital approach supports operational efficiency and improves customer experience. For the three months ended September 30, 2024, the company reported service revenue of $4.6 million, up from $3.7 million in the same period in 2023, reflecting increased utilization of its online services. The online platforms facilitate easy access to laboratory reports, allowing healthcare providers and patients to retrieve results promptly, thus enhancing the overall service delivery process.
| Online Platform Feature | Description | Benefits |
|---|---|---|
| Service Requests | Web-based submission of diagnostic tests | Streamlines order processing and reduces turnaround time |
| Results Access | Online access to laboratory results | Improves patient and provider experience by providing timely information |
| Customer Support | Digital channels for customer inquiries | Enhances customer support efficiency and satisfaction |
Precipio, Inc. (PRPO) - Business Model: Customer Segments
Oncologists and hospitals needing accurate diagnostic services
Precipio, Inc. primarily targets oncologists and hospitals that require precise and reliable diagnostic services. The company reported net sales of approximately $13.1 million for the nine months ended September 30, 2024, reflecting a 20% increase from $10.9 million in the same period in 2023. This growth is attributed to an increase in patient diagnostic service revenue, which rose by $2.7 million due to the processing of 8,745 cases, a 78% increase compared to 4,915 cases processed in the prior year period.
Reference laboratories and physician-office laboratories
Precipio also serves reference laboratories and physician-office laboratories. Their diagnostic services are integrated into the workflows of these labs, allowing them to enhance their testing capabilities. The company’s gross profit margin was 38% for the nine months ended September 30, 2024, up from 37% in the same period in 2023, indicating improved operational efficiency.
| Customer Segment | Cases Processed (2024) | Net Sales (2024) | Gross Profit Margin (%) |
|---|---|---|---|
| Oncologists and Hospitals | 8,745 | $13.1 million | 38% |
| Reference Laboratories | Data not disclosed | Included in overall sales | 38% |
| Physician-Office Laboratories | Data not disclosed | Included in overall sales | 38% |
Bio-pharma companies requiring biomarker testing
Additionally, Precipio caters to bio-pharma companies that need biomarker testing for drug development and clinical trials. The company’s service revenue from diagnostic testing, including biomarker testing, accounted for $11.3 million for the nine months ended September 30, 2024, with a significant portion of this revenue coming from third-party payers. The company processed a total of 3,584 cases in the third quarter of 2024, representing a 70% increase from the previous year.
| Revenue Source | Revenue (2024) | Percentage Change |
|---|---|---|
| Diagnostic Testing Revenue | $11.3 million | 33% |
| Medicare Revenue | $4.4 million | 19% increase |
| Third Party Payers | $6.8 million | 46% increase |
Precipio, Inc. (PRPO) - Business Model: Cost Structure
Personnel costs for laboratory and administrative staff
For the nine months ended September 30, 2024, Precipio, Inc. reported operating expenses of approximately $8.8 million, which reflects a decrease of $2.0 million compared to the same period in 2023. This decrease was primarily driven by a reduction in personnel costs, which fell by $1.2 million due to a lower headcount.
Operational expenses for laboratory and R&D facilities
Operational expenses, which include costs associated with laboratory and R&D facilities, accounted for a significant portion of the company's total expenses. For the nine months ended September 30, 2024, cost of sales increased by $1.3 million as compared to the same period in 2023, primarily driven by material and supply costs for patient tests, personnel costs, and rent associated with laboratory operations. The total cost of sales for this period was approximately $8.2 million.
Marketing and sales expenses related to product promotion
Sales and marketing expenses for Precipio, Inc. decreased by approximately $1.3 million, totaling around $3.3 million for the nine months ended September 30, 2024, compared to $4.6 million in the same period in 2023. This decrease was primarily attributed to a reduction in personnel costs in the marketing department.
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Personnel Costs | 2,874 | 3,333 | -459 |
| Cost of Sales | 8,200 | 6,900 | +1,300 |
| Sales and Marketing Expenses | 3,300 | 4,600 | -1,300 |
| Operating Expenses Total | 8,800 | 10,800 | -2,000 |
Precipio, Inc. (PRPO) - Business Model: Revenue Streams
Service revenue from diagnostic testing and biomarker services
The service revenue from diagnostic testing for the nine months ended September 30, 2024, was approximately $11.3 million, representing a 33% increase from $8.4 million in the same period of 2023. This growth was attributed to a significant rise in the number of processed cases, which increased to 8,745 cases in 2024 from 4,915 cases in 2023, marking a 78% increase. The service revenue for the three months ended September 30, 2024, was around $4.6 million, up from $3.7 million in the same quarter of 2023, indicating a 23% increase.
Product sales from proprietary diagnostic tools
Product sales for proprietary diagnostic tools totaled $1.9 million for the nine months ended September 30, 2024, down from $2.5 million in the same period in 2023, reflecting a decrease of 22%. For the third quarter of 2024, product revenue was $681,000, a decrease from $831,000 in the third quarter of 2023, representing an 18% decline. The decline in product sales is largely due to a shift in product mix and lower average pricing per case.
Clinical research grants from bio-pharma and government programs
Precipio, Inc. has engaged in various clinical research projects funded by bio-pharma companies and government programs. The specific financial contributions from these grants were not detailed in the available data, but the company has demonstrated a commitment to leveraging these relationships to enhance its research capabilities and expand its diagnostic offerings.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Service Revenue | $4,599 | $3,738 | 23% | $11,329 | $8,574 | 33% |
| Product Revenue | $681 | $831 | -18% | $1,936 | $2,469 | -22% |
| Clinical Research Grants | N/A | N/A | N/A | N/A | N/A | N/A |
Overall, the total net sales for the nine months ended September 30, 2024, amounted to approximately $13.1 million, an increase of 20% from $10.9 million in the same period of 2023.
Updated on 16 Nov 2024
Resources:
- Precipio, Inc. (PRPO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Precipio, Inc. (PRPO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Precipio, Inc. (PRPO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.