bioAffinity Cuts $4M in Costs to Boost CyPath® Lung Sales
bioAffinity Technologies, Inc. (Nasdaq: BIAF; BIAFW), a biotechnology company dedicated to advancing noninvasive diagnostic solutions for early-stage lung cancer and other respiratory diseases, has announced a series of strategic actions aimed at improving financial performance and accelerating the commercial growth of its flagship diagnostic test, CyPath® Lung. These measures are expected to generate approximately $4 million in annual cost savings within its subsidiary, Precision Pathology Laboratory Services (PPLS), while reallocating resources to drive CyPath® Lung sales in key national markets.
Strategic Actions to Enhance Financial Stability and Growth
bioAffinity Technologies has conducted a thorough operational review to identify cost-saving opportunities while maintaining its commitment to expanding access to CyPath® Lung. The company’s leadership believes that these strategic adjustments will enhance its financial health while ensuring continued high-quality service delivery.
“Following our acquisition of PPLS, we embarked on a deliberate and strategic review as part of our commitment to optimizing operations and accelerating CyPath® Lung sales,” said Maria Zannes, President and CEO of bioAffinity Technologies. “We believe our changes at PPLS support and enhance bioAffinity’s commercial strategy to fast-track market expansion and sales of CyPath® Lung while continuing to provide PPLS clients with exceptional anatomical pathology services, as it has done for more than 25 years.”
The targeted cost-saving measures include:
- Labor Cost Reductions: Approximately 38% of the workforce at PPLS will be reduced, contributing significantly to the $4 million in anticipated annual savings.
- Operational Efficiencies: The company plans to reduce direct costs associated with purchased services and supplies to enhance profitability.
- Strategic Service Line Adjustments: bioAffinity Technologies will discontinue certain low-margin pathology services, allowing the company to focus on high-value diagnostic offerings like CyPath® Lung.
Although these cost-saving initiatives will likely lead to a short-term reduction in revenue, bioAffinity’s leadership expects an improvement in overall profitability at PPLS by prioritizing the sales growth of CyPath® Lung and other high-margin service lines.
CyPath® Lung: A Cornerstone of bioAffinity’s Growth Strategy
CyPath® Lung is a groundbreaking noninvasive diagnostic test designed to detect early-stage lung cancer, offering patients and healthcare providers an alternative to traditional screening methods. With lung cancer being the leading cause of cancer-related deaths globally, the need for effective early detection tools has never been more critical.
“Our strategic adjustments today enhance our readiness to serve the market for noninvasive lung cancer detection in both civilian and military healthcare systems, and we continue to see increasing sales as more and more physicians incorporate CyPath® Lung into their protocol for patients at high risk for lung cancer,” said Maria Zannes.
With year-over-year sales growth, CyPath® Lung remains the focal point of bioAffinity’s commercial expansion strategy. The company is actively increasing awareness among healthcare providers and expanding its marketing initiatives to solidify its presence in the diagnostic testing landscape.
Expansion into Government Healthcare Systems
One of the key areas of growth for CyPath® Lung is its increasing availability within government healthcare systems. bioAffinity Technologies recently secured a listing for CyPath® Lung on the Federal Supply Schedule, making it available for purchase by U.S. government healthcare providers, including the Veterans Administration (VA) and the Department of Defense (DoD) medical centers.
“With CyPath® Lung now available for purchase through the Federal Supply Schedule, we intend to launch a focused government marketing program next quarter to introduce the test to Veterans Administration and Department of Defense medical centers,” Zannes added.
The company sees significant potential in expanding CyPath® Lung’s reach within these institutions, as lung cancer disproportionately affects military veterans and other high-risk populations.
Achieving 2025 Milestones and Future Innovation
Looking ahead, bioAffinity Technologies is committed to executing its strategic plan while continuing to innovate within the field of noninvasive diagnostics. Among its key objectives for 2025, the company aims to:
- Initiate enrollment for the FDA pivotal trial of CyPath® Lung, a crucial step toward securing regulatory approval and expanding its market reach.
- Continue developing additional noninvasive diagnostic tests for respiratory diseases, including chronic obstructive pulmonary disease (COPD) and asthma.
- Strengthen partnerships with healthcare providers and research institutions to drive adoption of its diagnostic solutions.
With these initiatives in place, bioAffinity Technologies remains focused on delivering cutting-edge diagnostic solutions that improve patient outcomes while enhancing its financial and operational performance.
