Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (October 2019)
29 slides from Neogenomics's investor presentation, Oct 31, 2019
Slide 1: Investor Presentation October 2019
INVESTOR PRESENTATION October 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation has been prepared by NeoGenomics, Inc. (“we,” ”us,” “our,” “NeoGenomics” or the “Company”) and is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of
Slide 3: We Are The Leading Oncology Testing Company
We Are The Leading Oncology Testing Company Extensive clinical expertise and leading commercial organization with significant scale and scope Global ~100 2,600+ laboratory ~1,000,000 ~500,000 hospitals and cancer footprint with MDs and PhDs tests per year patients served each year centers served 10
Slide 4: The Oncology Test Market Is Poised For Growth
The Oncology Test Market Is Poised For Growth Estimated 6% to 8% Market Growth Aging population driving cancer incidence Increased survival driving follow-on testing Proliferation and complexity of therapeutic options driving more testing Emerging platforms and tests (NGS, TMB, MSI, MRD, Liquid Biop
Slide 5: Tailwind: Number Of U.S. Cancer Survivors
Tailwind: Number Of U.S. Cancer Survivors Source: Cancer Epidemiology, Biomarkers & Prevention, July 2016 5
Slide 6: Tailwind: Increasingly Complex Rx Paradigm
Tailwind: Increasingly Complex Rx Paradigm 6
Slide 7: Tailwind: Burgeoning Oncology Pipeline
Tailwind: Burgeoning Oncology Pipeline 160 140 120 100 80 60 40 20 Source: Analyst reports; Cowen Group; EvaluatePharma® 2015 7
Slide 8: We Look To Grow Twice The Market Rate
We Look To Grow Twice The Market Rate Significant Company Specific Growth Drivers; Guide to Mid-Teens Organic Volume Growth 7 Genoptix synergies and strategic benefits 6 Revenue per test 5 initiatives Large, new 4 managed care, IDN, Hospital End-to-end System, 3 positioning Oncology in CDx Practice
Slide 9: We Compete Through Focus, Scale and Scope
We Compete Through Focus, Scale and Scope ~$6 Billion Oncology Lab Testing Industry Clinical Reference Labs Pure Play Oncology Reference Labs Niche Oncology Players (with oncology divisions) (comprehensive test menus) (limited test menus) •Comprehensive, multi-modality “one-stop-shop” •Large and adv
Slide 10: Uniquely Positioned: NGS
Uniquely Positioned: NGS Next-Generation Sequencing Broad and deep offering of NGS-based testing across hematologic cancers and solid tumors EXTENSIVE CAPABILITIES DELIVER KEY DIAGNOSTIC, PROGNOSTIC INDUSTRY LEADING PROVIDER • 30 NGS-based multi-gene tumor AND PREDICTIVE DATA • ~12,500 NGS-based tes
Slide 11: Uniquely Positioned: Companion Diagnostics
Uniquely Positioned: Companion Diagnostics Ability to take test across continuum Case Study from development, through clinical trials, and into the market CDx capabilities translating into customer wins Wide scale and scope across Pharma and Clinical markets Broad reach to oncologists and pathologis
Slide 12: Uniquely Positioned: Pharma Services
Uniquely Positioned: Pharma Services Compelling access Ability to to data and ability to Breadth and Depth Scientific help, develop and Leading identify patients for of Capabilities Leadership launch companion Pathologists clinical trials and diagnostic tests targeted therapy $28MM of new business i
Slide 13: Culture Is At The Core Of All We Do
Culture Is At The Core Of All We Do COMMON PURPOSE We save lives by improving patient care. VISION By providing uncompromising quality, exceptional service and innovative solutions, we will be the World’s leading cancer testing and information company. VALUES − Quality − Integrity − Accountability −
Slide 14: Track Record of Growth – Clinical Services
Track Record of Growth – Clinical Services Clinical Testing Annual Revenue / Clinical Tests Performed (1) 250 $242 800 $210 750k 700 $203 200 657k 600 563k 500 150 400 100 $88 $79 300 $63 $56 200 223k 50 $40 $27 $32 176k $18 136k 100 $6 $10 112k $0.6 $2 45k 57k 76k 0 32k 0 2004 2005 2006 2007 2008 2
Slide 15: Track Record of Improvement in Cost Per Test
Track Record of Improvement in Cost Per Test $328 $318 $294 $256 $243 $221 $201 $179 $171 2010 2011 2012 2013 2014 2015 2016 2017 2018 Average Cost of Good Sold / Clinical Test 15
Slide 16: Rapidly Growing Pharma Services Business
Rapidly Growing Pharma Services Business $MMs 140.0 18% YoY 118.3 Backlog 120.0 Growth 106.1 98.9 100.8 100.0 97.2 80.0 60.0 40.0 27.6 21.2 21.2 26% YoY 17.8 19.9 20.0 Revenue 12.7 12.1 9.6 10.6 9.4 Growth (1.9)(2.1) (3.7)(1.9) (8.4)(1.5) (0.5)(1.4) (1.8)(1.4) - Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 (20.0)
Slide 17: Strong Momentum in Q3 2019
Strong Momentum in Q3 2019 Consolidated revenue of $104.7 million, up 51% YoY Clinical services revenue of $92.6 million, up 56% YoY Pharma services of $12.1 million, up 26% YoY Gross margin of 48.6%, up 179 bps YoY Adjusted EBITDA of $14.9 million, up 32% YoY Continued progress on revenue per test
Slide 18: Updated 2019 Guidance
Updated 2019 Guidance Prior Guidance ($MMs) Updated Guidance ($MMs) CONSOLIDATED REVENUE $388 -$402 $401 -$406 NET INCOME / (LOSS) ($1) -$3 $1-$3 ADJ. EBITDA* $54 -$58 $56-$58 *NeoGenomics has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjus
Slide 19: Investment Highlights
Investment Highlights Leading pure-play oncology testing company Significant market growth tailwinds Extensive molecular/oncology test menu Leader in immuno-oncology testing Market share gains driven by customer satisfaction Rapidly growing Pharma Services business Track record of profitable growth
Slide 20: Appendix
Appendix QNEO
Slide 21: Balance Sheet, September 30, 2019
Balance Sheet, September 30, 2019 (unaudited, in thousands) September 30, 2019 ASSETS (Unaudited) December 31, 2018 Cash and cash equivalents $ 178,891 $ 9,811 Accounts receivable, net 91,133 76,919 Inventories 12,632 8,650 Other current assets 9,345 8,288 Total current assets 292,001 103,668 Proper
Slide 22: Income Statement, September 30, 2019
Income Statement, September 30, 2019 (unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 NET REVENUE: Clinical Services $ 92,565 $ 59,449 $ 267,757 $ 175,960 Pharma Services 12,107 9,647 34,205 24,306 Total revenue 104,672 69,096 301,962 200
Slide 23: Statements of Cash Flows, September 30, 2019
Statements of Cash Flows, September 30, 2019 (unaudited, in thousands) Nine Months Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES 2019 2018 Net income $ 1,710 $ 2,287 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 15,200 11,477 Loss on dispos
Slide 24: Segment Results, September 30, 2019
Segment Results, September 30, 2019 (unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, Clinical Operations: 2019 2018 % Change 2019 2018 % Change Clinical Revenue $ 92,565 $ 59,449 55.7 % $ 267,757 $ 175,960 52.2 % Cost of revenue 47,526 31,509 50.8 % 136,557
Slide 25: Adjusted EBITDA, September 30, 2019
Adjusted EBITDA, September 30, 2019 (unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (GAAP) $ 2,143 $ 2,023 $ 1,710 $ 2,287 Adjustments to net income: Interest expense, net 203 1,873 3,333 4,766 Income tax expense (benefit) 1,3
Slide 26: 2019 Guidance
2019 Guidance (unaudited, in thousands) Year Ended December 31, 2019 Low Range High Range Net income (GAAP) $ 1,000 $ 3,000 Amortization of intangibles 9,000 9,000 Non-cash, stock-based compensation (4) 9,000 9,000 Acquisition and integration related expenses 2,000 2,000 Other one-time expenses 5,00
Slide 27: Focused on Customer Satisfaction
Focused on Customer Satisfaction Net Promoter Score Q2 2019 Clinical Client Survey How likely is it that you would recommend this company to a friend or colleague? Not at all likely Neutral Extremely likely 0 0 1 2 3 4 5 6 7 8 9 10 -50 50 Detractor Passive Promoter +63 NPS 6.2% 24.2% 69.6% -100 100
Slide 28: COMPASS® and CHART®
COMPASS® and CHART® COMPASS: comprehensive, hematopathologist- directed, integrated assessment report • Customized workflow on each patient case to provide a disease-specific evaluation based on up- to-date guidelines • Actionable diagnosis in a one- page correlation report • Consultation with assig
Slide 29: NeoGenomics
(NEO GENOMICS