Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — IPO Roadshow (May 2019)
29 slides from Neogenomics's IPO roadshow presentation, May 20, 2019
Slide 1: Investor Presentation May 2019
Exhibit 99.2 INVESTOR PRESENTATION May 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: Offering Summary
Offering Summary ISSUER NeoGenomics, Inc. TICKER / EXCHANGE NEO / NASDAQ BASE DEAL SIZE $150 million (100% primary) UNDERWRITERS’ OPTION 15% General corporate purposes, including to acquire or invest in complementary businesses and USE OF PROCEEDS technologies, although we have no current commitment
Slide 4: 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 5: Who We Are
Who We Are COMMON PURPOSE We save lives by improving patient care. VISION By providing uncompromising quality, exceptional service and innovative solutions, we strive to be the World’s leading cancer testing and information company. VALUES − Quality − Integrity − Accountability − Teamwork − Innovati
Slide 6: Focused on Oncology for a Broad Client Base
Focused on Oncology for a Broad Client Base Clinical Pharma Services Services Broad and comprehensive oncology testing menu Provide comprehensive support from pre-clinical & research discovery through FDA filing, approval & launch preparation Customers include pathologists, oncology groups, – Biomar
Slide 7: Oncology Market Tailwinds
Oncology Market Tailwinds Aging population driving cancer incidence Increased survival driving follow-on testing Growing number of therapeutic options Increased therapeutic complexity Burgeoning oncology drug pipeline Emerging platforms and tests (NGS, TMB, MSI, etc.) 7
Slide 8: US Oncology Lab Industry
US Oncology Lab Industry Clinical Reference Labs Pure Play Oncology Reference Labs Niche Oncology Players (with oncology divisions) (comprehensive test menus) (limited test menus) 8
Slide 9: A New Standard in Oncology Testing
A New Standard in Oncology Testing Genoptix NeoGenomics Outstanding reputation and Well established as a leading relationships with community provider of oncology testing for oncologists pathologists and hospitals Outstanding reach Broad and deep Deep knowledge Differentiated Broad portfolio of High
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 • ~12,000 NGS-based tes
Slide 11: 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 $21MM of new business i
Slide 12: 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 with ~30 projects in backlog Wide scale and scope across Pharma and Clinical markets Broad reach
Slide 13: 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 $88 300 $79 $63 $56 200 223k 50 $40 $27 $32 176k $18 136k 100 112k $6 $10 $0.6 $2 45k 57k 76k 0 32k 0 2004 2005 2006 2007 2008 2
Slide 14: Revenue Per Test Reimbursement Efforts Are Yielding Results
Revenue Per Test Reimbursement Efforts Are Yielding Results $396 15% YoY Revenue Per Test Growth 1 $368 $361 $323 $319 2015 2016 2017 2018 Q1 19 Average clinical testing revenue / test 1) Approximately one-fourth of the yr/yr increase was organic, with the remainder attributed to the 14 acquisition
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 41% YoY Backlog 100.8 Growth 97.2 98.9 89.6 71.7 26.7 21.2 21.2 17.8 14.7 45% YoY 10.6 Revenue 8.2 9.6 9.4 6.5 Growth (4.2) (1.0) (0.3) (0.2) (2.1) (1.9) (1.9) (3.7) (1.5) (8.4) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 $MMs Revenue Booked (gross) Change in Dor
Slide 17: Strong Momentum in Q1 2019
Strong Momentum in Q1 2019 Consolidated revenue of $95.6 million, up 51% YoY Clinical services revenue of $86.2 million, up 51% YoY Pharma services of $9.4 million, up 45% YoY Gross margin of 49%, up 625 bps YoY Adjusted EBITDA of $13.8 million, up 49% YoY Continued progress on revenue per test real
Slide 18: Key Strategic and Investment Initiatives
Key Strategic and Investment Initiatives Investing in our informatics capabilities Pharma customers driving demand for deeper informatics - Prospective identification of patients for clinical trials - Informing treatment selection Strategic acquisitions or partnerships Focused on targeted rather tha
Slide 19: Significant Near-Term Growth Drivers
Significant Near-Term Growth Drivers 7 Genoptix synergies and strategic benefits 6 Proactively address revenue per 5 test New managed 4 care and GPO contracts End-to-end 3 positioning in CDx 2 Leading NGS capabilities 1 Global strategic Large backlog alliance of signed with PPD Pharma contracts 19
Slide 20: 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 21: Appendix
Appendix @NEO
Slide 22: Balance Sheet, March 31, 2019
Balance Sheet, March 31, 2019 (unaudited, in thousands) ASSETS March 31, 2019 December 31, 2018 Cash and cash equivalents $ 13,195 $ 9,811 Accounts receivable 82,585 76,919 Inventory 9,670 8,650 Other current assets 10,495 8,288 Total current assets 115,945 103,668 Property and equipment (net of acc
Slide 23: Income Statement, March 31, 2019
Income Statement, March 31, 2019 (unaudited, in thousands) Three Months Ended March 31, 2019 2018 Net Revenue: Clinical Services $ 86,210 $ 56,971 Pharma Services 9,367 6,452 Total Revenue 95,577 63,423 COST OF REVENUE 48,462 36,120 GROSS PROFIT 47,115 27,303 Operating expenses: General and administ
Slide 24: Statements of Cash Flows, March 31, 2019
Statements of Cash Flows, March 31, 2019 (unaudited, in thousands) Three Months Ended March 31, CASH FLOWS FROM OPERATING ACTIVITIES 2019 2018 Net income (loss) $ (2,424) $ 644 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,271 3,633
Slide 25: Segment Results, March 31, 2019
Segment Results, March 31, 2019 (unaudited, in thousands) Three Months Ended March 31, 2018 % Change Pharma Operations: 2019 (as adjusted) Pharma Revenue $ 9,367 $ 6,452 45.2 % Cost of Revenue $ 5,811 $ 5,078 14.4 % Gross Profit $ 3,556 $ 1,374 158.8 % Three Months Ended March 31, 2018 % Change Clin
Slide 26: Adjusted EBITDA, March 31, 2019
Adjusted EBITDA, March 31, 2019 (unaudited, in thousands) Three Months Ended March 31, 2019 2018 Net Income (Loss) (GAAP) $ (2,424) $ 644 Adjustments to Net Income: Interest expense, net 1,826 1,486 Income tax (benefit) expense (2,023) 438 Amortization of intangibles 2,559 1,413 Depreciation 5,271 3
Slide 27: Focused on Customer Satisfaction
Focused on Customer Satisfaction Net Promoter Score Q4 2018 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 +59 NPS 7% 26% 67% -100 100 % Prom
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 assigned
Slide 29: NeoGenomics
(NEO GENOMICS