Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (August 2019)
30 slides from Neogenomics's investor presentation, Aug 2, 2019
Slide 1: Investor Presentation July 2019
Exhibit 99.1 INVESTOR PRESENTATION July 2019
Slide 2: Forward-Looking Statements
Exhibit 99.1 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 b
Slide 3: Investment Highlights
Exhibit 99.1 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 profi
Slide 4: Who We Are
Exhibit 99.1 Who We Are 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 − Teamwork −
Slide 5: Focused on Oncology for a Broad Client Base
Exhibit 99.1 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 gro
Slide 6: Oncology Market Tailwinds
Exhibit 99.1 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.) 6
Slide 7: US Oncology Lab Industry
Exhibit 99.1 US Oncology Lab Industry Clinical Reference Labs Pure Play Oncology Reference Labs Niche Oncology Players (with oncology divisions) (comprehensive test menus) (limited test menus) 7
Slide 8: A New Standard in Oncology Testing
Exhibit 99.1 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 port
Slide 9: Uniquely Positioned: NGS
Exhibit 99.1 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
Slide 10: Uniquely Positioned: Pharma Services
Exhibit 99.1 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 $20MM of n
Slide 11: Uniquely Positioned: Companion Diagnostics
Exhibit 99.1 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 a
Slide 12: Track Record of Growth – Clinical Services
Exhibit 99.1 Track Record of Growth – Clinical Services 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 $10 112k $2 $6 $0.6 45k 57k 76k 0 32k 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 C
Slide 13: Revenue Per Test Reimbursement Efforts Are Yielding Results
Exhibit 99.1 Revenue Per Test Reimbursement Efforts Are Yielding Results $396 12% YoY Revenue Per Test Growth 1 $361 $355 $323 $319 2015 2016 2017 2018 Q2 19 Average clinical testing revenue / test 1) Increase includes the impact of the December 2018 Genoptix acquisition 13
Slide 14: Track Record of Improvement in Cost Per Test
Exhibit 99.1 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 14
Slide 15: Rapidly Growing Pharma Services Business
Exhibit 99.1 Rapidly Growing Pharma Services Business $MMs $120.0 106.1 18% YoY 100.8 98.9 Backlog $100.0 97.2 Growth 89.6 $80.0 $60.0 $40.0 55% YoY 26.7 Revenue 21.2 21.2 19.9 Growth $20.0 17.8 12.7 10.6 8.2 9.6 9.4 (0.2) (0.3) (1.9) (2.1) (3.7) (1.9) (8.4) (1.5) (0.5)(1.4) $0.0 Q2'18 Q3'18 Q4'18 Q
Slide 16: Strong Momentum in Q2 2019
Exhibit 99.1 Strong Momentum in Q2 2019 Consolidated revenue of $101.7 million, up 50% YoY Clinical services revenue of $89.0 million, up 49% YoY Pharma services of $12.7 million, up 55% YoY Gross margin of 48.1%, up 308 bps YoY Adjusted EBITDA of $14.9 million, up 49% YoY Continued progress on reve
Slide 17: Updated 2019 Guidance
Exhibit 99.1 Updated 2019 Guidance Prior Guidance ($MMs) Updated Guidance ($MMs) CONSOLIDATED REVENUE $384 - $400 $388 - $402 NET INCOME / (LOSS) ($3) - $1 ($1) - $3 ADJ. EBITDA* $52 - $56 $54 - $58 *NeoGenomics has provided adjusted financial information that has not been prepared in accordance wit
Slide 18: Key Strategic and Investment Initiatives
Exhibit 99.1 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 target
Slide 19: Significant Near-Term Growth Drivers
Exhibit 99.1 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 c
Slide 20: Investment Highlights
Exhibit 99.1 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 profi
Slide 21: Appendix
Exhibit 99.1 Appendix QNEO
Slide 22: Balance Sheet, June 30, 2019
Exhibit 99.1 Balance Sheet, June 30, 2019 (unaudited, in thousands) ASSETS June 30, 2019 December 31, 2018 Cash and cash equivalents $ 167,436 $ 9,811 Accounts receivable 89,991 76,919 Inventory 8,733 8,650 Other current assets 10,185 8,288 Total current assets 276,345 103,668 Property and equipment
Slide 23: Income Statement, June 30, 2019
Exhibit 99.1 Income Statement, June 30, 2019 (unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net revenue: Clinical Services $ 88,982 $ 59,540 $ 175,192 $ 116,511 Pharma Services 12,731 8,206 22,098 14,658 Total revenue 101,713 67,746 197,290 131,16
Slide 24: Statements of Cash Flows, June 30, 2019
Exhibit 99.1 Statements of Cash Flows, June 30, 2019 (unaudited, in thousands) Six Months Ended June 30, CASH FLOWS FROM OPERATING ACTIVITIES 2019 2018 Net (loss) income $ (433) $ 264 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortizati
Slide 25: Segment Results, June 30, 2019
Exhibit 99.1 Segment Results, June 30, 2019 (unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Pharma Operations: 2019 (as adjusted) % Change 2019 (as adjusted) % Change Pharma Revenue $ 12,731 $ 8,206 55.2 % $ 22,098 $ 14,658 50.8 % Cost of revenue $ 6,367 $ 5
Slide 26: Adjusted EBITDA, June 30, 2019
Exhibit 99.1 Adjusted EBITDA, June 30, 2019 (unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) (GAAP) $ 1,991 $ (380) $ (433) $ 264 Adjustments to net income (loss): Interest expense, net 1,304 1,407 3,130 2,892 Income tax expense (b
Slide 27: 2019 Guidance
Exhibit 99.1 2019 Guidance (unaudited, in thousands) Year Ended December 31, 2019 Low Range High Range Net (loss) income (GAAP) $ (1,000) $ 3,000 Amortization of intangibles 9,000 9,000 Non-cash, stock-based compensation (4) 8,000 8,000 Acquisition and integration related expenses 2,000 2,000 Other
Slide 28: Focused on Customer Satisfaction
Exhibit 99.1 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
Slide 29: COMPASS® and CHART®
Exhibit 99.1 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
Slide 30: NeoGenomics
Exhibit 99.1 (NEO GENOMICS