Precipio Inc (NYSE:PRPO), a specialty cancer diagnostics firm, announced Monday it has signed a services contract with several hospitals in Cairo, Egypt that could be worth more than $1.5 million.
The New Haven, Connecticut-based company did not name the management group nor did it reveal the contract’s total amount.
Shares of Precipio jumped 9% to $5.24 following news of the contract.
Precipio said the Cairo hospitals will send patient biopsies for primary diagnosis and secondary consultation. In addition, the contract calls for establishing laboratory operations in Egypt that will license Precipio’s proprietary technologies to provide liquid biopsy testing using ICE-COLD PCR technology, and HemeScreen for hematologic molecular testing.
The announcement of Egyptian contract is part of the company’s strategy to expand internationally with a focus on Asia, Europe, the Middle East and South America. “The international segment of our business is going to be a valuable contributor to our revenues, margins and cash flow in the coming quarters,,” said CEO Ilan Danieli.
The contract also comes as Precipio regained compliance with Nasdaq listing requirements to maintain a minimum bid price of $1 a share. The company on Friday said it would execute a 1:15 reverse stock split of its common stock, and the post-spilt took effect Monday, helping to boost the sare price.
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