Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (October 2020)
26 slides from Neogenomics's investor presentation, Oct 29, 2020
Slide 1: Investor Presentation October 2020
Exhibit 99.1 INVESTOR PRESENTATION October 2020
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 120+ 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 11
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, Long-term 7 Acquisition 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
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, including liquid biopsy COMPREHENSIVE LIQUID BIOPSY SUITE EXTENSIVE CAPABILITIES INDUSTRY LEADING PROVIDER • InVisionFirst- Lung Liquid Biopsy NGS - • 28 NGS-
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 $35MM of new business i
Slide 13: Focused on Customer Satisfaction
Focused on Customer Satisfaction Net Promoter Score Q2 2020 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 Detractor Passive Promoter -50 +67 50 NPS 7% 19% 74% -100 100 % Prom
Slide 14: 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 are becoming the World’s leading cancer testing and information company. VALUES − Quality − Integrity − Accountabil
Slide 15: Track Record of Growth – Clinical Services
Track Record of Growth – Clinical Services Clinical Testing Annual Revenue / Clinical Tests Performed (1) $361 1,200 350 1,000 300 988k 250 $242 800 $210 $203 750k 200 657k 600 150 563k 400 100 $88 $79 $63 $56 200 $40 50 $32 223k 176k 136k 112k 0 57k 76k 0 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 16: Track Record of Improvement in Cost Per Test
Track Record of Improvement in Cost Per Test $350 $325 $318 $300 $294 $275 $256 $250 $243 $225 $221 $201 $200 $188 $179 $175 $171 $150 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average Cost of Good Sold / Clinical Test 16
Slide 17: Rapidly Growing Pharma Services Business
Rapidly Growing Pharma Services Business $MMs $200.0 $185.4 57% YoY $172.9 Backlog Growth $147.7 $150.0 $130.4 $118.3 $100.0 38% YoY $50.0 $40.5 $32.8 $34.9 Revenue $27.6 $28.4 Growth $15.0 $16.7 $12.1 $13.5 $13.0 $13.0 $(3.2) $(7.2) $(13.1) $(2.3) $(5.6) $- Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 $(50.0) Rev
Slide 18: 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 19: Appendix
Appendix QNEO
Slide 20: Balance Sheet, September 30, 2020
Balance Sheet, September 30, 2020 (unaudited, in thousands) September 30, 2020 (Unaudited) December 31, 2019 ASSETS Cash and cash equivalents $ 233,233 $ 173,016 Marketable securities, at fair value 50,375 — Accounts receivable, net 103,697 94,242 Inventories 20,643 14,405 Other current assets 14,42
Slide 21: Income Statement, September 30, 2020
Income Statement, September 30, 2020 (unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 NET REVENUE: Clinical Services $ 108,733 $ 92,565 $ 275,599 $ 267,757 Pharma Services 16,711 12,107 42,852 34,205 Total revenue 125,444 104,672 318,451
Slide 22: Statements of Cash Flows, September 30, 2020
Statements of Cash Flows, September 30, 2020 (unaudited, in thousands) Nine Months Ended September 30, 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (11,245) $ 1,710 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 18,705 15,200 Loss
Slide 23: Segment Results, September 30, 2020
Segment Results, September 30, 2020 (unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % Change 2020 2019 % Change Clinical Services: Revenue $ 108,733 $ 92,565 17.5 % $ 275,599 $ 267,757 2.9 % Cost of revenue 60,607 47,526 27.5 % 158,287 136,557 15.
Slide 24: Adjusted EBITDA, September 30, 2020
Adjusted EBITDA, September 30, 2020 (unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) (GAAP) $ 2,557 $ 2,143 $ (11,245) $ 1,710 Adjustments to net income (loss): Interest expense, net 2,458 203 4,825 3,333 Income tax (ben
Slide 25: 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 26: Trademark notices
© 2020 NeoGenomics Laboratories, Inc. All Rights Reserved. All other trademarks are the property of their respective owners InVisionFirst®-Lung is a trademark of Inivata Limited therascreen® is a trademark of QIAGEN N.V. PIQRAY® is a trademark of Novartis International AG KEYTRUDA® is a trademark of