Slide 1: Eradicating the Problem of Misdiagnosis by Harnessing Academic Expertise & Advanced Technologies
Eradicating the Problem of Misdiagnosis by Harnessing Academic Expertise & Advanced Technologies Target Offering: $8M Common Equity Raise – August 2017 A DIAGNOSTIC PLATFORM COMPANY (NASDAQ: PRPO) Issuer Free Writing Prospectus, Filed Pursuant to Rule 433 of the Securities Act of 1933, as amended Re
Slide 2: Preliminary Prospectus Supplement; Forward Looking Statements
PRELIMINART PROSPECTUS SUPPLEMENT Precipio, Inc. (Precipio) intends to file a preliminary prospectus supplement with the Securities and Exchange Commission (SEC) in connection with the offering to which this presentation relates. Before you invest, you should read the preliminary prospectus suppleme
Slide 3: Free Writing Prospectus
This presentation highlights basic information about Precipio, Inc. and the offering. Precipio, Inc. (Precipio) has filed a registration statement on Form S-3 (Registration No. 333-201907) (including a prospectus supplement) with the U.S. Securities and Exchange Committee (the “SEC”) for the offerin
Slide 4: Offering Summary
OFFERING SUMMARY Issuer Precipio, Inc. Exchange/Ticker NASDAQ: PRPO Offering Size Approximately $6,000,000 - $8,000,000 (100% Primary) Over Allotment 15% (100% Primary) Use of Proceeds Growth Capital, R&D Sole Book-Runner Aegis Capital Corp. Target Pricing Week of August 7th, 2017
Slide 5: Executive summary
Executive summary OVERVIEW THE VISION Eradicate misdiagnosis so patients live longer and better lives THE PROBLEM Significant rate of misdiagnosis across numerous disease states (particularly in cancer) THE SOLUTION A platform that harnesses academic expertise + proprietary technologies, to deliver
Slide 6: Our team
Our team ABOUT PRECIPIO MANAGEMENT Ilan Danieli, Founder & CEO - experienced executive with startups, corporate restructuring and investment management experience. Holds an MBA from the University of Virginia; former Israeli army tank commander; private pilot. Carl Iberger, CFO – over 30 years of ex
Slide 7: Current providers misdiagnose up to 44% of patients
Current providers misdiagnose up to 44% of patients* MARKET OVERVIEW Increasingly complex disease states are met with eroding specialization rather than increased expertise Economic pressures drive towards generalization Shortage of pathologists Industry competes on price & TAT; Quality/accuracy are
Slide 8: Misdiagnosis has massive downstream consequences
Misdiagnosis has massive downstream consequences MARKET OVERVIEW Estimated cost of misdiagnosis (and other inefficiencies) to the US healthcare system $750B ANNUALLY PHYSICIANS Physicians administer incorrect treatments, creating adverse effects rather than improving outcomes PAYERS Payers waste of
Slide 9: The Solution
THE SOLUTION A Platform to achieve superior accuracy through academic expertise PATIENTS Become part of a network providing higher quality services Engage and take a role in their healthcare decisions PHYSICIANS Access to unparalleled expertise Increase their success in caring for patients Financial
Slide 10: Academic institutions possess underutilized expertise & technology
Academic institutions possess underutilized expertise & technology THE OPPORTUNITY VOLUME OF TESTS OUTSOURCED R&D Academic institutions invest heavily in the development of new technologies. Through its platform, Precipio gains access to technology that has been significantly de-risked Precipio’s pl
Slide 11: Business Model: Service Model and Academic IP Model
Service Model Academic IP Model BUSINESS MODEL The first company to combine a Service & Academic IP model Proven market with demonstrated value proposition Stable, gradual growth & scalability High margin business Precipio’s model: Incorporate additional services into model, leveraging existing plat
Slide 12: Initial Focus: Clinical Pathology Services and ICP
Clinical Pathology Services ICP – Liquid Biopsy Technology INITIAL FOCUS Two high valued-added offerings in the Cancer Diagnostics arena Clinical diagnostic services focused on blood cancers to oncologists, with demonstrated superior results Exclusive partnerships with premier academic center - Yale
Slide 13: Pathology Services Business
PATHOLOGY SERVICES BUSINESS Primary and 2nd opinion diagnoses via academic pathologists US annual Market data for blood-based cancers: 600K $6.1B blood-related cancer drug & diagnostics market size (out of $50B) # OF BIOPSIES/YEAR Approx. 172,000 patients newly diagnosed each year $6.1B TOTAL US CAN
Slide 14: Liquid biopsies have the potential to revolutionize patient care
Liquid biopsies have the potential to revolutionize patient care LIQUID BIOPSIES LIQUID BIOPSY SOLUTIONS Enable non-invasive diagnostics using liquid samples Personalize treatments based on current genetic profiles Ongoing monitoring is easily implemented on all platforms Increased sensitivity, accu
Slide 15: Liquid Biopsy Field
LIQUID BIOPSY FIELD The application of liquid biopsies in cancer diagnostics can be categorized into three areas: Significant, growing, revolutionary field Liquid Biopsy Applications Application Diagnostic screening Treatment resistance Disease recurrence Clinical need Identify tumor genetic profile
Slide 16: ICP Business Model
ICP BUSINESS MODEL Specimens prepared for analysis ICP added to front end process Genetic mutations detected Enriched DNA increases sensitivity Clinical action taken Revenue model: Product: Application-specific kits (monitoring/resistance/recurrence) with uniquely designed ICP chemical Kits sold to
Slide 17: ICP Competitive Analysis
Competition ICE-COLD PCR (ICP) Relevant Application Diagnostic/screening Comprehensive panels Targeted panels only Treatment Resistance No Yes Disease Recurrence No Yes Panels Broad, encompassing panels Disease & Application Specific Panels Lab/hospital internalize Send out only Set up in house Requ
Slide 18: ICP Future Potential Applications
ICP FUTURE POTENTIAL APPLICATIONS Companion Diagnostics Patients with CML (Chronic Myeloid Leukemia): Targeted therapy: Gleevec Companion diagnostic: BCR-ABL test Tested at initial diagnosis, then repeated periodically ICP could increase sensitivity of the test, thereby identifying Additional compan
Slide 19: Growth & Scale
GROWTH & SCALE Develop current businesses + add new products to our platform Clinical Pathology Services Expand portfolio of services to all types of cancer Cross-sell both clinical services and IP-based technologies to our customers, creating demand and customer pipeline Build both domestic and Int
Slide 20: Investor funds used to grow top line and develop our platform
Investor funds used to grow top line and develop our platform Provide sufficient capital to reach CF+ in 2019 General working capital and repayment of certain indebtedness $2.5M YEAR END 2018 Target Revenue run rate $10M YEAR END 2019 Target Revenue run rate $25M EBITDA and Cash Flow positive 2018-1
Slide 21: Market Comparables
Low revenue multiple relative to peers MARKET COMPARABLES Diagnostic technology businesses generally trade at high revenue multiples Many investing in a single technology Many me-too business models with a solid distribution platform Poised to distribute new and exclusively licensed technologies thr
Slide 22: Financials
Financials THE NUMBERS COMBINED HISTORICAL REVENUES FROM CONTINUING OPERATIONS ($M) Key Financial Stats (As of 07/28/2017) Market Cap: $65M Share price: $9.58 $ Capitalization Table (As of 07/28/2017) WAEP $ Value % of Fully Diluted Common Shares Outstanding 6,607,966 72.20% Convertible Preferred Se
Slide 23: Summary
SUMMARY MARKET PROBLEM Lack of specialization and expertise result in diagnostic error creating a costly and wasteful challenge to the healthcare field THE SOLUTION A combination of service and proprietary technology platform creates a powerful, sustainable business model with effective results PROO