Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — IPO Roadshow (August 2018)
33 slides from Neogenomics's IPO roadshow presentation, Aug 6, 2018
Slide 1: NeoGenomics Investor Presentation August 2018
Exhibit 99.2 NeoGenomics Investor Presentation August 2018
Slide 2: Disclaimers
Disclaimers The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more compl
Slide 3: Offering Summary
Offering Summary Issuer NeoGenomics, Inc. Exchange: Ticker NASDAQCM: NEO Base Deal Size Approximately $125 million (100% primary) Overallotment 15% (100% primary) Offering Type Fully marketed follow-on of common stock Lock-up 90 days To fund the growth of the business, including the acquisition of a
Slide 4: Company Overview
Company Overview A leading pure-play oncology testing company Significant near-term growth drivers Extensive molecular/oncology test menu A leader in immuno-oncology testing Market share gains driven by customer satisfaction Rapidly growing Pharma Services business Track record of prof
Slide 5: Substantial Industry Tailwinds
Substantial Industry Tailwinds • Aging population driving cancer incidence • Increased survival driving follow-on testing • Growing number of therapeutic options • Increased therapeutic complexity • Burgeoning oncology drug pipeline • Emerging platforms and tests (NGS, TMB, MSI, etc.) 5
Slide 6: Our Competitive Advantage
Our Competitive Advantage • Comprehensive, multi-modality “one-stop-shop” • Large and advanced somatic cancer test menu • National footprint and extensive payer contracts • Outstanding client service and partnership models • Leader in test development immuno-oncology • Synergistic Pharma and Clinica
Slide 7: Track Record of Growth
Track Record of Growth **Clinical Genetic Testing Annual Revenue Clinical Genetic Tests Performed ($, MMs) 657,394 $210 563,132 $203 $182 221,191 $79 $63 175,688 $56 135,580 $40 $32 112,434 75,576 $27 56,710 $18 44,924 $6 $10 20,998 31,868 4,082 12,838 $0.6 $2 1,152 2004 2005 2006 2007 2008 2009 201
Slide 8: Significant Near-term Growth Drivers
Significant Near-term Growth Drivers 6 Pursue accelerated growth through 5 strategic acquisitions New GPO (expand technical relationships capabilities, acquire 4 complimentary tests, New, national, in- broaden geographic network contract reach, deepen 3 with Cigna customer base) New labs in Geneva,
Slide 9: Rapidly Growing Pharma Services Business
Rapidly Growing Pharma Services Business $MMs $100.0 91.0 95% YoY Backlog Growth $80.0 73.1 70.1 $60.0 56.1 46.7 $40.0 26.4 21.2 16.7 $20.0 15.2 13.7 22% YoY Revenue 7.3 7.2 8.2 6.7 6.5 Growth (4.2) (0.3) $0.0 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 -$20.0 Revenue Booked (net) Change in Dormant Projects Endin
Slide 10: Global Strategic Alliance With PPD
Global Strategic Alliance With PPD • PPD’s preferred lab for oncology testing • Significant revenue opportunity • Expands global client base • Expansion into Asia • Collaborations for companion diagnostics • Opportunities to leverage laboratory data for trials 10
Slide 11: Acquisition Strategy
Acquisition Strategy Accelerate growth through synergistic acquisitions within our clinical and pharma service businesses Expand clinical capabilities Enhanced pharma Broaden Geographic Expand Customer Base and test menu services offering Reach Proven Ability to Target, Acquire, and Integrate Strate
Slide 12: Industry and Company Overview
Industry and Company Overview 12
Slide 13: US Oncology Testing Market
US Oncology Testing Market Large, growing, and highly fragmented • Testing to diagnose cancer, guide therapy and monitor disease progression • $6 billion US market • Growing 7-10% per annum • NeoGenomics is a leading player • Highly fragmented • Competitors include large reference labs, smaller spec
Slide 14: Tailwind: Demographics
Tailwind: Demographics Aging Population Incidence of Cancer by Age 120.0 25.4% 24.1% 100.0 80.0 19.6% 60.0 14.1% 40.0 7.8% U.S. U.S. populationin millions 5.2% 20.0 2.7% 1.0% 0.0 < 20 20-34 35-44 45-54 55-64 65-74 74-84 > 84 Age 60-64 Age 65-74 Age 75-84 Age 85+ Source: United States Census Bureau S
Slide 15: Tailwind: Proliferation of Therapeutic Options
Tailwind: Proliferation of Therapeutic Options Number of Treatment Options for Selected Tumors 2016 vs. 2006 CLL 4 3 1 Prostate 1 9 1 2 2016 Lung 1 4 3 8 3 Breast 4 1 4 9 1 CLL 2 2 Prostate 6 1 2006 Lung 2 7 Breast 1 4 7 Her 2 CDK EGFR Anti-CD Hormonals Others ALK Chemotherapy Immonotherapy BRAF Oth
Slide 16: Tailwind: Increasingly Complex Rx Paradigm
Tailwind: Increasingly Complex Rx Paradigm 16
Slide 17: Tailwind: Burgeoning Oncology Pipeline
Tailwind: Burgeoning Oncology Pipeline 160 140 120 100 80 60 40 20 Source: Analyst reports; Cowen Group; EvaluatePharma® 2015 17
Slide 18: Our Clinical Offering
Our Clinical Offering • Large, comprehensive, multi-modality test menu with more than 600 unique assays • A leader in all core disciplines: IHC, FISH, flow cytometry, cytogenetics and molecular • Serving hospitals, cancer centers, pathologists and oncologists throughout the US Pathologist Patient On
Slide 19: Our Pharma Services Offering
Our Pharma Services Offering Pharma Services Division Specialist Services Pharma Services Technologies • Bioinformatics • Proof of concept • IHC (qual and quant) • Pharma Data Services • Development & optimization • Flow cytometry • Medical/Scientific • Assay validations • FISH & RNA-ISH consultatio
Slide 20: Multi-modality One-stop-shop
Multi-modality One-stop-shop Complementary and Comprehensive Anatomic Flow Cytometry Cytogenetics FISH Molecular Pathology • Robust Library of • Sanger Sequencing • Extensive • Consultation Pathology • State-of-Art Validated Probes • Next-Gen Sequencing automation for High • Immunohistochemistry tec
Slide 21: Track Record of Innovation
Track Record of Innovation New Tests Launched 2013-2017 2017 Locations: • Opening of first international laboratory in Rolle, Switzerland Papers Published: • Wild-type Blocking PCR Combined with Direct Sequencing as a Highly Sensitive Method for Detection of Low-Frequency 2016 Somatic Mutations. J V
Slide 22: Leading Molecular Offering
Leading Molecular Offering Broad Menu Market Leading Results • 157 different tests • $50M clinical revenue run rate • More than 30 multi-gene tumor tests • 25%+ volume growth • TMB, MSI, other immuno-oncology assays WGS, WES, RNA-SEQ, NeoAg Targeted genomic/RNA seq. & 1000’s Cancer Panels 100’s Illu
Slide 23: National Footprint
National Footprint Dots reflect individual customers; colors reflect sales territories 23
Slide 24: Innovative Client Partnership Models
Innovative Client Partnership Models “Tech-Only” Option Lab Collaboration Initiative NeoGenomics Provides technical service and bills for technical component of testing NeoGenomics Oncology Provides Flow Practice Cytometry Performs rapid Pathologist Technology TAT Flow Transfer Provides Medical inte
Slide 25: PD-L1: a Companion Dx and Immuno-Oncology Success Story
PD-L1: a Companion Dx and Immuno-Oncology Success Story Keytruda Case Study • Participated in Early Validation Program • Selected due to IHC expertise • Now, a leading provider of clinical PD-L1 testing 25
Slide 26: Proven Management Team
Proven Management Team Position NEO Experience Industry Experience Douglas VanOort Chairman & Chief Executive Officer 9 years 36 years Robert Shovlin President of Clinical Services Division 3 years 21 years George Cardoza President of Pharma Services Division 8 years 23 years Sharon Virag Chief Fina
Slide 27: Improvements in Cost per Test
Improvements in Cost per Test $350 $328 $325 $318 $300 $294 $275 $256 $250 $243 $225 $221 $201 $200 $179 $175 $150 2010 2011 2012 2013 2014 2015 2016 2017 Average Cost of Good Sold / Clinical Genetic Test 27
Slide 28: Productivity Gains Drive Margin Expansion
Productivity Gains Drive Margin Expansion 55% 113.4% 120% 110% 100% 90% 50% 80% 70% 60% 46.1% 50% 45.2% 40% Margin 44.7% 45% 44.2% 43.8% 30% 20% **Gross **Gross 41.2% 41.0% 10% 40.5% 0% 40% -10% -20% -30% -42.8% Productivity& Rev/Test ChangeAvg inCumulative -40% 35% -50% 2010 2011 2012 2013 2014 201
Slide 29: 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 prof
Slide 30: Appendix
QNEO Appendix
Slide 31: Balance Sheet, June 30, 2018
Balance Sheet, June 30, 2018 (unaudited, in thousands) December 31, 2017 ASSETS June 30, 2018 (Restated) Cash and cash equivalents $ 9,435 $ 12,821 Accounts receivable 60,765 60,427 Inventory 6,898 7,474 Other current assets 6,161 5,153 Total current assets 83,259 85,875 Property and equipment (net
Slide 32: Income Statement, June 30, 2018
Income Statement, June 30, 2018 (unaudited, in thousands) Three Months Ended Six Months Ended June 30, June 30, 2017 2017 2018 (Restated 2018 (Restated) Net Revenue: ) Clinical testing $ 59,540 $ 55,547 $ 116,511 $ 108,455 Pharma Services 8,206 6,717 14,658 11,238 Total Revenue 67,746 62,264 131,169
Slide 33: Statements of Cash Flows, June 30, 2018
Statements of Cash Flows, June 30, 2018 (unaudited, in thousands) Six Months Ended June 30, CASH FLOWS FROM OPERATING ACTIVITIES 2018 2017 (Restated) Net income (loss) $ 264 $ (680 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 7,444 7,906 Amo