Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (May 2021)
35 slides from Neogenomics's investor presentation, May 6, 2021
Slide 1: NeoGenomics Investor Presentation May 2021
NeoGenomics Investor Presentation May 2021 1 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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
Slide 3: Our Common Purpose, Vision and Values
We save lives by improving patient care. By providing uncompromising quality, exceptional service and innovative solutions, we are becoming the world’s leading cancer testing and information company. Quality, integrity, accountability, teamwork, innovation. NeoGenomics We are Focused and Genuine Our
Slide 4: Snapshot: FY 2020 Key Figures
4 FY 2020 Key Figures** Revenue: $444MM Revenue Growth: 9% Core Clinical Test Volume: 976,069 Unique Patients Tested: >435,000 Adjusted EBITDA: $35MM FY 2020 Revenue Mix* Snapshot One Lab. Vital Answers. Transforming Care for Cancer Patients • Leading oncology diagnostic company with diversified, “O
Slide 5: Three Divisions: Clinical, Pharma Services, Informatics
Informatics Division One Lab. Vital Answers. 5 Leading oncology diagnostics company, designed to provide innovative diagnostic and data solutions that bridge oncologists, pathologists, and therapeutic development • Leading oncology reference lab market share for oncologists, pathologists and hospita
Slide 6: Locations across continents
13 locations across 3 continents Leading provider of oncology testing and global oncology research services NeoGenomics Carlsbad, California Houston, Texas La Jolla, California Fort Myers, Florida Tampa, Florida Atlanta, Georgia Nashville, Tennessee RTP, North Carolina Cambridge, UK Geneva, Switzerl
Slide 7: Oncology Testing Market Tailwinds
Oncology Testing Market Tailwinds Estimated 6% to 8% annual market growth with upside potential Demographics − An aging population is resulting in higher cancer incidence − Increased cancer survival rates leading to more follow-on testing Precision Medicine & Drug Development − Proliferation and com
Slide 8: Market Tailwinds: Demographics
Market Tailwinds: Demographics An aging population is leading to higher cancer incidence with new precision therapies allowing people to live longer with cancer Source: National Cancer Institute 8 2030 22.2 Million Cancer Survivors 10 years 31% Increase The number of cancer survivors is projected to
Slide 9: Market Tailwinds: Precision Medicine
Source: IQVIA Institute. June 2020 9 2007 2012 2016 2019 70 47 25 17 A dramatic increase in approved precision oncology medicines is driving the need for associated biomarker testing. Market Tailwinds: Precision Medicine Oncology therapies with required or recommended biomarker testing
Slide 10: Market Tailwinds: Drug Development
Market Tailwinds: Drug Development Diagnostic testing is critical as additional drugs gain approval Source: IQVIA Pipeline Intelligence, Dec 2018; IQVIA Institute, May 2019 10 New oncology molecules are being developed at a record pace. The late phase targeted therapy oncology pipeline increased 100
Slide 11: We Look to Grow at Twice the Market Rate
We Look to Grow at Twice the Market Rate 11 Significant Company-Specific Growth Drivers 1 The most comprehensive test menu in oncology Dx – including advanced NGS capabilities such as liquid biopsy 2 Uncompromising customer service with exceptional turn around time on testing 3 4 5 Over 120 MDs and
Slide 12: History of Organic and Inorganic Success
$40 $56 $63 $79 $88 $203 $210 $242 $361 $382 76k 112k 136k 176k 223k 563k 657k 750k 988k 976k 0 200 400 600 800 1,000 1,200 0 50 100 150 200 250 300 350 400 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Clinical Testing Revenue ($MM) Clinical Tests Performed Clinical Testing Annual Revenue / Cor
Slide 13: Our Focus Is The Community Setting
Our Focus Is The Community Setting We bring state-of-the-art oncology testing to the masses 13 NeoGenomics works with >4,400 hospitals, institutions and oncology offices, most in the community setting, to ensure all patients can benefit from high-quality diagnostic tests to support Precision Medicin
Slide 14: Comprehensive Oncology Test Menu
Comprehensive Oncology Test Menu A low Beta approach to a massive high growth end market 14 • Consultation pathology • Immunochemistry • Immunohistochemistry • Digital imaging • Automated quantitative IHC • Global and tech-only service • 10-color flow • MRD detection • Global and tech-only service •
Slide 15: A Differentiated Approach To NGS Testing
Targeted Profiles Broad Based Profiles Liquid Biopsy 26 NeoTYPE® targeted profiles • Multi-Modal • Only appropriate biomarkers • 19 Solid Tumor Profiles • 7 Heme Profiles 17 Targeted RNA Fusion Profiles • High capacity workflow • Only appropriate biomarkers • Detection of novel fusions Solid Tumor •
Slide 16: We Are Focused on The Customer
We Are Focused on The Customer NOTES: 1,055 respondents 16 Best-in-class net promoter score Q4 2020 Clinical Client Survey How likely is it that you would recommend this company to a friend or colleague? 0 1 2 3 4 5 6 7 8 9 10 Not at all likely Neutral Extremely likely Detractor Passive Promoter 7%
Slide 17: Competing Through Focus, Scale and Scope
Clinical Reference Labs with Oncology Divisions Niche Oncology Players High R&D investment and limited test menus 17 Diversified Focus Leading Share in U.S. Clinical Oncology Market Comprehensive, multi-modality “One Lab” position Large and advanced somatic cancer test menu Significant reach into al
Slide 18: Our Ability to Profitably Innovate Enables Sustainable Growth
Our Ability to Profitably Innovate Enables Sustainable Growth 18 Core Clinical Business • Growing volumes >10%* • Self-funding innovation Three important growth areas in the business today were enabled by leveraging the power of our growing core clinical engine. These initiatives could represent nea
Slide 19: Rapidly Growing Pharma Services Business
Rapidly Growing Pharma Services Business The Company defines Dormant Projects as projects with no activity for 12 months or longer that have not officially been cancelled by the Sponsor 19 $13.0 $13.0 $16.7 $19.3 $19.0 $28.4 $40.5 $34.9 $48.0 $30.6 $15.0 $- $- $- $- $(13.1) $(2.3) $(5.6) $(5.2) $(2.
Slide 20: Uniquely Positioned: Pharma Services
Uniquely Positioned: Pharma Services Factors driving pharma services success in the oncology marketplace 20 $31M new signed contracts recorded in Q1 of 2021 Synergies with Clinical & Informatics More than 40 Active Companion Diagnostic Projects Ongoing A Record $218M backlog exiting Q1 of 2021 Compr
Slide 21: Informatics
Informatics Patient-focused. Data driven. 21 Our information platform includes one of the largest cancer testing databases, covering the complete spectrum of oncology testing modalities for over 1.6 million patients. >1.6M patients tested 5 years historical data >4,400 clinical clients >435k patient
Slide 22: Informatics Primary offerings today
Informatics Primary offerings today 22 Diagnostic lab alerts and commercial analytics Clinical trial matching and provider outreach
Slide 23: Three Divisions That Are Increasingly Synergistic
Three Divisions That Are Increasingly Synergistic 23 Innovation and scale has made our three divisions increasingly synergistic over time creating a flywheel effect. Data-driven insights to support drug discovery, clinical trials & commercial activity Clinical Decision Support Sponsored testing prog
Slide 24: Leading Oncology Diagnostics Company Guided By Science
Leading Oncology Diagnostics Company 24 Guided By Science And Passion For Patient Care We are a leader in the field of diagnostic testing with a significant share of patient test volume in the US Our extensive patient database allows us to optimize the pairing of patients with clinical trials We act
Slide 25: One Lab. Vital Answers.
One Lab. Vital Answers. Transforming Care for Cancer Patients.
Slide 26: Appendix
Appendix GENOMICS
Slide 27: Experience and Scale Matter
27 Experience and Scale Matter >435,000 patients per year ~1 million cancer-related tests per year >4,400 hospital, institution and oncology office clients 620+ cancer tests ready for order >50,000 Clinical Next Gen Sequencing tests per year 336 Biomarker solid tumor discovery panel 26 targeted NeoT
Slide 28: Well Positioned: Companion Diagnostics
28 Companion diagnostics are part of the precision medicine that is driving the future of oncology Ability to take test across continuum from development, through clinical trials, and into the market CDx capabilities translating into customer wins Wide scale and scope across Pharma and Clinical mark
Slide 29: Proving the Point: KEYTRUDA
Proving the Point: KEYTRUDA® • Selected by Merck due to IHC expertise • Participated in Early Validation Program for Keytruda • One of only 3 labs to offer PD-L1 testing on Day 1 29 We remain an industry leader in clinical PD-L1 testing
Slide 30: Proving the Point: PIQRAY
• PIK3CA is a gene that is mutated in many breast cancers • In 2018, when Novartis was in late-stage development for its PIK3CA inhibitor, alpelisib, QIAGEN established a development program to bring to market a molecular test (therascreen® PIK3CA RGQ PCR Kit) as a companion diagnostic to guide the
Slide 31: Balance Sheet, March 31, 2021
Balance Sheet, March 31, 2021 (unaudited, in thousands) 31 March 31, 2021 (Unaudited) December 31, 2020 ASSETS Cash and cash equivalents $ 611,970 $ 228,713 Marketable securities, at fair value 190,710 67,546 Accounts receivable, net 102,922 106,843 Inventories 21,382 29,526 Prepaid assets 11,073 11
Slide 32: Income Statement, March 31, 2021
Income Statement, March 31, 2021 (unaudited, in thousands) 32 Three Months Ended March 31, 2021 2020 NET REVENUE: Clinical Services $ 96,487 $ 92,982 Pharma Services 19,046 13,048 Total revenue 115,533 106,030 COST OF REVENUE 73,959 59,661 GROSS PROFIT 41,574 46,369 Operating expenses: General and a
Slide 33: Statements of Cash Flows, March 31, 2021
Statements of Cash Flows, March 31, 2021 (unaudited, in thousands) 33 Three Months Ended March 31, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (22,114) $ (6,978) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 6,680 6,240 Amortization of i
Slide 34: Segment Results, March 31, 2021
Segment Results, March 31, 2021 (unaudited, in thousands) (9) Clinical tests exclude requisitions, tests, revenue and costs of revenue for Pharma Services and COVID-19 PCR tests. 34 Three Months Ended March 31, 2021 2020 % Change Clinical Services: Revenue $ 96,487 $ 92,982 3.8 % Cost of revenue(8)
Slide 35: Adjusted EBITDA, March 31, 2021
Adjusted EBITDA, March 31, 2021 (unaudited, in thousands) 35 Three Months Ended March 31, 2021 2020 Net loss (GAAP) $ (22,114) $ (6,978) Adjustments to net loss: Interest expense, net 1,177 819 Income tax expense 976 1,089 Amortization of intangibles 2,458 2,452 Depreciation 6,680 6,240 EBITDA (non-