Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (March 2020)
29 slides from Neogenomics's investor presentation, Mar 2, 2020
Slide 1: Investor Presentation February 2020
INVESTOR PRESENTATION February 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 2,600+ laboratory ~500,000 100+ hospitals and cancer footprint with ~1,000,000 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 7 Acquisition synergies and strategic benefits 6 Revenue per test initiatives 5 Large, new 4 managed care, IDN, Hospital End-to-end System, 3 positioning Oncology in CDx Practi
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 EXTENSIVE CAPABILITIES DELIVER KEY DIAGNOSTIC, PROGNOSTIC INDUSTRY LEADING PROVIDER • 30 NGS-based multi-gene tumor AND PREDICTIVE DATA • ~13,100 NGS-based tes
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 $33MM of new business i
Slide 13: Focused on Customer Satisfaction
Focused on Customer Satisfaction Net Promoter Score Q1 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 -50 50 Detractor Passive Promoter +60 NPS 7% 26% 67% -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 will be the World’s leading cancer testing and information company. VALUES − Quality − Integrity − Accountability −
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 $140.0 130.4 32% YoY Backlog 118.3 Growth $120.0 106.1 98.9 100.8 $100.0 $80.0 $60.0 $40.0 32.8 27.6 21.2 19.9 27% YoY 17.8 Revenue $20.0 12.7 12.1 13.5 10.6 9.4 Growth (1.9) (1.4) (0.5) (1.8) (6.2) (1.5) (1.4) (1.0) $0.0 (3.7) (8.4) Q4'18 Q1'19 Q2'19 Q3
Slide 18: 2019 Represented A Strong Year Of Growth
2019 Represented A Strong Year Of Growth Consolidated revenue of $409 million, up 48% YoY Clinical services revenue of $361 million, up 49% YoY Pharma services of $48 million, up 37% YoY Gross Profit of $197 million, up 55% YoY Adjusted EBITDA of $57 million, up 31% YoY Progress on revenue per test
Slide 19: 2020 Guidance
2020 Guidance Guidance ($MMs) CONSOLIDATED REVENUE $464 - $474 NET INCOME / (LOSS) $8 - $13 ADJ. EBITDA* $60 - $65 *NeoGenomics has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS. Ea
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 QNEO
Slide 22: Balance Sheet, December 31, 2019
Balance Sheet, December 31, 2019 (unaudited, in thousands) December 31, 2019 December 31, 2018 ASSETS Cash and cash equivalents $ 173,016 $ 9,811 Accounts receivable, net 94,242 76,919 Inventories 14,405 8,650 Other current assets 9,075 8,288 Total current assets 290,738 103,668 Property and equipme
Slide 23: Income Statement, December 31, 2019
Income Statement, December 31, 2019 (unaudited, in thousands) For the Three Months Ended December 31, For the Year Ended December 31, 2019 2018 2019 2018 NET REVENUE Clinical services $ 93,405 $ 65,913 $ 361,161 $ 241,873 Pharma services 13,463 10,562 47,669 34,868 Total revenue 106,868 76,475 408,8
Slide 24: Statements of Cash Flows, December 31, 2019
Statements of Cash Flows, December 31, 2019 (unaudited, in thousands) For the Year Ended December 31, CASH FLOWS FROM OPERATING ACTIVITIES 2019 2018 Net income $ 8,006 $ 2,640 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 20,
Slide 25: Segment Results, December 31, 2019
Segment Results, December 31, 2019 (unaudited, in thousands) For the Three Months Ended December 31, For the Year Ended December 31, 2019 2018 % Change 2019 2018 % Change Clinical Services: Clinical Revenue $ 93,405 $ 65,913 41.7 % $ 361,161 $ 241,873 49.3 % Cost of revenue 49,054 33,710 45.5 % 185,
Slide 26: Adjusted EBITDA, December 31, 2019
Adjusted EBITDA, December 31, 2019 (unaudited, in thousands) For the Three Months Ended For the Year Ended December December 31, 31, 2019 2018 2019 2018 NET INCOME (GAAP) $ 6,296 $ 353 $ 8,006 $ 2,640 Adjustments to net income: Interest expense, net 380 1,464 3,713 6,230 Amortization of intangibles
Slide 27: 2020 Guidance
2020 Guidance (unaudited, in thousands) For the Year Ended December 31, 2020 Range Net income attributable to common stockholders (GAAP) $ 8,000 $ 13,000 Amortization of intangibles 10,000 10,000 Non-cash, stock-based compensation (4) 11,000 11,000 Acquisition and integration related expenses 1,000
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 assig
Slide 29: (NEO
(NEO GENOMICS