Precipio, Inc.
Q4 2020 Earnings Call Transcript

Published: 31 Mar 2021

[Operator:]

Welcome to the Precipio Q4 2020 and Yearend Shareholder Update Call. All participants will be in a listen-only mode. Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance on forward-looking statements as these statements are based upon our current expectations, forecasts and assumptions and are subject to significant risks and uncertainties. These statements may be identified by words such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, continue or the negative of these terms or other words or terms of similar meaning. Risks and uncertainties that could cause our actual results to differ materially from those set forth in any forward-looking statements may include but are not limited to the matters listed under Risk Factors in our annual report on Form 10-K for the year ended December 31, 2020, which is on file with the Securities and Exchange Commission as well as other risks detailed in our subsequent filings with the Securities and Exchange Commission. These reports are available at www.sec.gov. Statements and information including forward-looking statements speak only to the date they are provided unless an earlier date is indicated and we do not undertake any obligation to publicly update any statements or information, including these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

[Ilan Danieli:]

Thank you and good afternoon, everyone. I would like to thank you all for joining our post yearend 2020 10K filing shareholder call. During the call, I'll provide a recap of 2020 and update on the progress our company has made since the start of 2021 and our plans for 2021 and beyond. With me today is Carl Iberger, our CFO who will share his perspective on the business and our finances. I'll close with a few thoughts on where the company is going 2021 and beyond. As we filed our 10K filing and the subsequent press release we issued yesterday morning, we've doubled our revenues from 2019 to 2020. This has been an impressive accomplishment in a normal year and 2020 was . Our sales team stayed limited to no access to customers, operational and other limitations to what is already accomplished workflow, yet with all of that we were able to double the number of patients for whom we provided what we believe to be the most accurate diagnosis that this industry can provide backed by academic experts and proprietary technologies. This is an incredible feat and I want to take a moment to recognize our all team that made this happen. Not only did any of our employees put their personal concerns or need for basic care. Instead while majority of the counties stayed home, they showed up to work every day to take care of the patient in front of us. As we watch this capital markets disarray, we saw many businesses take immediate action to cut cost through massively layoffs. Our company culture . Instead management and employees make sure that while our take-or-pay may be temporarily reduced, nobody had to face the prospect of losing their job and not being able to provide it. This is the commitment we as a company have with each other and to the heart of who we are. I am proud of the team for all they have accomplished for 2020. On the product side, 2020 was the year we formulated and solidified our strategy as we took our proprietary technologies and converted them into product. We have the technology of the working format after all we were the first customers to use both IV-Cell in our lab. In order to create a proper business unit for these technologies, we developed -- we needed a sales channel and a go to market strategy. Let's start with IV-Cell. IV-Cell is a sophisticated product used in the study in the laboratory which is not only a highly part of the lab but also one that is typically adverse to change. So we needed a strategy that would get us -- would both get us in the door with decision makers as well as trust worthy relationship with these decision makers to convince them to try something new. In August, we signed a sales and distribution agreement with ADS Biotec, one of the most established and respectable players in the industry with products sold directly into these generic labs. In the laboratory around the world a significant volume provides ADS, through our partnership with ADS, we aim to gain access to these laboratories and the decision makers and with ADS's credibility we would win customers.

[Carl Iberger:]

Thank you, Leon. Good afternoon. I am Carl Iberger, Precipio's Chief Financial Officer. Yesterday Precipio issued a press release that provided a synopsis of our 2020 topline results. This press release followed the filing of our 10K on Monday, March 29. In his opening remarks, Ilan covered a number of items. I'd like to take this opportunity to add some additional comments regarding our sales growth in pathology services the headway we are making developing a distribution market for IV-Cell and finally the impressive reception HemeScreen is receiving with office-based oncologists and larger oncology commercial labs.

[Ilan Danieli:]

Yes sorry I was on mute. Thank you, Carl. I appreciate the outstanding job, you and your team are doing. Let me end with a few closing thoughts on where I see us in 2021 and beyond. Pathology services will always be our core business. Pathology business starts with our sales team responsible for the growth we describe on the top of this and the is supported by our dedicated team in the lab and customer service to ensure that we deliver on our promise every day for every patient the doctor sees. It also facilitates our ability to create, test and develop new products that drive the product side of our business and this is where I think that real growth engine exists. The product side of the business offers unique opportunities we've never really think before. First of all, proprietary products create a barrier to entry not easily overcome by competitors. Second, these are B2B products with firm revenues from ongoing usage. And lastly, the market the market that issues products are huge exceeding $100 million per year. Therefore, going parts of our company from strategy in which we impact patient care both externally in our labs and by creating products that can be used to achieve the same by outside labs. In 2021, ICS continue to grow the pathology business, our value proposition is strong and our team is well poised to deliver that message and so we continue to gain customers. And obviously the product side of the business is becoming a substantial part of our revenue and our bottom line. With a solid go to market strategy and formidable partners for both our lead products and the feedback from our customers is outstanding. In short, the pathology business will continue to serve as our anchor for the business and the foundation for developing our proprietary product and those products are what will enable to achieve rapid market and finance growth. Coming out of 2020, I am more excited than ever, we've the team and the tools we need to execute and results are already showing. I want to thank you all for your ongoing support and I look forward to speaking with you soon. Thank you and have a nice evening.

[Operator:]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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