IPO FILING: Precision Therapeutics

By Douglas A. McIntyre Published Aug 24, 1:21PM EDT

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Precision Therapeutics is a life sciences company developing and commercializing tests intended to assist physicians in individualizing cancer therapy in an effort to improve treatment outcomes unde the name ChemoFx test. ChemoFx is a chemoresponse test, a type of test that uses a patient’s live tumor cells to assess his or her likelihood of responding to various cancer drugs, or drug combinations, that the patient’s physician is considering for treatment. ChemoFx measures both the responsiveness, or sensitivity, of tumor cells to particular drugs, as well as their resistance.

Currently, its sales and marketing efforts target the gynecologic cancer market and it intends to leverage ChemoFx for additional indications such as breast, lung and colorectal cancers. ChemoFx has a list price of $450 per drug or drug combination tested, and the average invoiced price is approximately $3,300 per test billed, although average net revenue per test billed is less than an average invoiced price because many payors currently do not provide coverage or reimburse for ChemoFx.

Its net revenues for the first 6-months of the year are $926,000.00 and it has posted an operating loss of $5.805 million. Its previous revenues look spotty because of prior versions of ChemoFX sales, but its fiscal 2005 results were $1.92 million in revenues and operating losses of $4.756 million; 2006 results were $846 million in revenues and a $9.338 million operating loss.

Jon C. Ogg
August 24, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.