NEW HAVEN, Conn., Aug. 20, 2020 (GLOBE NEWSWIRE) — Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced it has signed an exclusive global distribution agreement with ADS Biotec for the sale and distribution of its proprietary IV-Cell cytogenetics cell culturing media. The companies recently completed the development and have fully validated new version of its media, a next-generation improved product that will yield increased benefits over its first version. Both companies have developed an ambitious go-to-market strategy that will be launched next month, and will be joining forces to rapidly bring the product to market, introducing it to the top major labs worldwide.
ADS, and its Japanese parent company ADSTEC, are a worldwide market leader in developing, manufacturing and distributing the HANABI™ cytogenetics cell culture harvester, a machine critical to the downstream process of cytogenetic analysis, which includes using a cell culture medium such as IV-Cell. The installed base of HANABI customers includes most, if not all, large clinical reference labs that have significant cytogenetic test volume. Any current or prospective customer of ADS Biotec is a potential customer for IV-Cell, yielding significant synergies between both companies. As further explained below, this partnership offers significant value to ADS Biotec, to Precipio, and most important – to the customer.“We could not have found a better partner to bring our proprietary media IV-Cell to market,” said Ilan Danieli, Precipio’s CEO. “ADS Biotec possesses all the qualities we were looking for in such a partner. Their brand and quality is undisputed; their sales and installed customer base which offer immediate access to target customers; and distribution capabilities are an asset that we would unlikely be able to replicate. This partnership makes a lot of sense on multiple levels; it is a true win-win for both companies.”“The ability to bring novel, advanced technologies serves to enhance our value and relationship with our customers,” said Vijay Dube, CEO of ADS Biotec. “We are delighted to join forces with Precipio to bring this exciting new technology to market. IV-Cell brings not only improved efficiency and cost-saving benefits to labs; but it also improves the quality and accuracy of the diagnostic process, impacting patient care.”Go-to-market strategyAs recently discussed in the recent Q2-2020 quarterly shareholder update, Precipio has embarked on a strategy to distribute its product through the formation of strategic partnerships, rather than attempting to build its own sales and distribution team. We have recognized that while our strength lies primarily in the development of these proprietary technologies; the time and effort required to build a sales and distribution network for each product vertical will require substantial resources, carries more risk, and may result in a prolonged effort to reach significant sales penetration.Conversely, leveraging a strategic partner’s existing sales networks and long-standing relationships with potential clients, Precipio believes that these partnerships will yield a significantly faster, as well as more economically advantageous pathway to getting our products into both domestic and international laboratory customers as possible.Why ADS BiotecPrecipio identified three key strengths that ADS Biotec possesses, which drove the decision to enter into this partnership:Market leadership, strong reputation, highest quality products in their Hanabi systems.Global sales presence, established technical support system and long-standing relationships with an existing installed customer base.Logistics and distribution facilities worldwidePrecipio’s IV-Cell cytogenetics cell culturing media is used by cytogenetics laboratories as part of the diagnostic process. The purpose of cell culturing is to grow the cells in a laboratory setting, mimicking the body’s conditions in order to identify the potential for abnormalities and malignant cells, indicating the potential presence of cancer in those cells.Following the cell culturing process, the cells must undergo a process called “harvesting”. This is a complex and laborious process that prepares the cells for analysis. While smaller laboratories will conduct manual harvesting, the vast majority of larger laboratories introduce automation, including the use of an automated harvester.The HANABI™ automated harvester, manufactured and distributed by ADS Biotec, is the world leading automated harvester; any major laboratory with substantial volume has a HANABI machine in their laboratory. Therefore, every customer of ADS Biotec is a potential target user for Precipio’s IV-Cell media. ADS Biotec has not only a global presence in over 30 countries; it has an extensive sales and support network to over 200 of the world’s largest laboratories. Through years of providing quality products and outstanding support, ADS Biotech has earned a stellar reputation in the industry; the company has strong credibility in the market, and long-standing relationships with the key decision-makers.Furthermore, ADS Biotec also has global logistics and product distribution facilities worldwide, enabling the provision of rapid support to its customers. In the context of distribution of IV-Cell, ADS Biotec will be able to hold inventory and provide immediate product delivery and support to customers. This provides an additional benefit to this partnership.The benefits of this partnership to ADS Biotec are also significant. IV-Cell enables ADS Biotec to leverage the HANABI systems by creating new “efficient” economics that can be attractive to additional segments of the lab market. Precipio’s technology will enter into the consumable market with a product that is directly tied to ADS Biotec’s core business, creating a compelling value proposition to ADS Biotec’s customers that will strengthen its ties with them. Furthermore, ADS Biotec can leverage its existing sales and support channels to drive more revenue. Lastly, as the business of consumables is an ongoing business, this creates a recurring revenue stream for ADS Biotec.Product roll-outADS Biotec and Precipio will be launching its IV-Cell media in two phases:A.    Beta-site study.Through ADS Biotec’s relationships, Precipio has been introduced to several reputable laboratories worldwide who have agreed to participate in a beta-site study project. The companies anticipate the study initiation in Q4-2020, and will be completed by year end.The benefits of this study will be three-fold. First, these laboratories will conduct their own, independent validation of the V2 IV-Cell Media to demonstrate the efficacy and experience the benefits of the product, compared to their existing media.Second, both companies will aggregate the results of this extensive study and plan to publish and present the results in leading scientific journals, providing credible, widespread endorsement of the media. This is a critical supporting element to bringing such a new product into the market.Lastly, following a successful validation, it is expected that these laboratories will immediately become the first customers for Precipio’s IV-Cell media.B.    Full roll outFollowing the completion of the study, ADS Biotec will put to work its global sales and support team to introduce the product to its entire installed customer base. Armed with a broad-based study conducted by multiple reputable laboratories, we anticipate that ADS Biotec’s team will be able to rapidly and successfully grow the customer base that will use the IV-Cell media.About ADSADS Biotec, along with its parent company ADSTEC (Japan), is a global leader in the development, manufacture and sale of automated instruments and consumables for use in cytogenetic, pathology and research laboratories. Our technology and services enable our customers to increase productivity and throughput while maintaining a high degree of quality and consistency.ADS Biotec has a truly global presence with development, sales, and support operations on three continents, and users in over 30 Countries.  Our team, having over 20 years of experience in this industry, is recognized by our customers for our advanced instrumentation, superior customer service, scientific application support, and a very knowledgeable sales force.  With a company-wide commitment to quality and value, we serve professionals and laboratories performing diagnostic analysis in the areas of Cytogenetics, pathology, and molecular genetic analysis.About PrecipioPrecipio has built a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to physicians and their patients worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment such as the Yale School of Medicine and Harvard’s Dana-Farber Cancer Institute, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and the company, on our business, financial condition and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations, or could affect the company’s ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the company’s business, operations and employees and the other factors that are described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis” in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated from time to time in the company’s Securities and Exchange Commission filings. The company’s forward-looking statements in this press release are based on management’s current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.

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