Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (February 2013)
20 slides from Neogenomics's investor presentation, February 2013
Slide 1: Company Overview Presentation
NASDAQ: NEO Time Matters. Results Count! Company Overview Presentation February 2013 “Improving Patient Care through exceptional cancer genetic testing services!” 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended; Section 21E of the Securities Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. The words “m
Slide 3: Investment Highlights
Investment Highlights • Fast growing pure-play, cancer genetics lab • Servicing: Oncologists, Pathologists and Hospitals • “Tech-Only” model creates strategic client partnerships • Rapidly growing industry undergoing consolidation • Strong Management Team with large cap lab experience • Industry lea
Slide 4: Consistent Historical Growth
Consistent Historical Growth Annual Revenue ($, 000’s) Tests Performed (000’s) $60,000 120,000 $50,000 100,000 $40,000 80,000 $30,000 60,000 $20,000 40,000 $10,000 20,000 $0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 4
Slide 5: Accelerating Cash Flow & Earnings
Accelerating Cash Flow & Earnings ($, 000's) 2010 2011 2012 Total Revenue $ 34,371 $ 43,484 $ 59,867 % Growth 16.6% 26.5% 37.7% Total Gross Margin 15,783 19,428 26,836 Gross Margin % 45.9% 44.7% 44.8% Sales & Marketing as a % of Rev 21.8% 16.0% 12.5% Gen & Admin & R&D as a % of Rev 32.8% 29.6% 30.3%
Slide 6: Industry Dynamics
Industry Dynamics • Molecular diagnostics transforming lab services Boomer Impact on Cancer Market industry and fueling rapid growth – Molecular diagnostics enable physicians to better diagnose diseases and predict therapeutic efficacy • Clinical Benefits: Effective treatment at an early stage incre
Slide 7: U.S. Cancer Testing Market: $10-12 Billion
U.S. Cancer Testing Market: $10-12 Billion Hematopoietic Solid Tumor Cancers Cancers Total Testing Market: $3 - 4 Billion $7 - 8 Billion Est. Genetic Mkt. (TAM) ~$1 - 2 Billion ~$1 - 2 Billion Patients in Treatment: 850,000 7.0 million New Diagnoses/Yr.: 150,000 1.45 million Specimen Types: Bone Mar
Slide 8: Cancer Testing Market Characteristics
Cancer Testing Market Characteristics • Highest growth segment of lab Industry - ~20% annual growth in genetics testing - 8-10% annual growth in related AP testing • Approx. 360 Genetic Labs in the U.S. - 2/3 affiliated with academic institutions - Approximately 20% perform 80% of testing - Only 15-
Slide 9: Business Model Targets
Business Model Targets Pathologists and Hospital Path Groups • Innovative technical component (TC) only services – Flow, FISH, IHC • Enables community pathologists to compete with large labs • Rapid turnaround-time and web-based reporting • Extensive training programs Oncologists and Clinician Group
Slide 10: NeoGenomics' Cancer Testing Services
NeoGenomics’ Cancer Testing Services Key Testing Modalities Cytogenetics: chromosome analysis - “Neighborhood view of 46 houses from 1000 feet” Flow Cytometry & IHC: cell surface marker analysis - “Single house view from 500 feet” Fluorescence in-situ Hybridization (FISH): gene analysis - “Door and
Slide 11: Recent Innovation
Recent Innovation • Hired Dr. Maher Albitar as Chief Medical Officer (Jan 12) • Entered into exclusive worldwide license to Health Discovery Corp’s IP relating to pattern recognition technology, biomarker discovery, and gene & protein-based tests for cancer LDTs (Jan 12) - Targeted initial focus are
Slide 12: Molecular Assays Launched in 2012
Molecular Assays Launched in 2012 Solid Tumor Assays Hematopoietic Assays 1 IDH1 & IDH2 Mutation Analysis 12 BCR-ABL1 Translocation, t(9;22) 2 c-KIT Mutation Analysis ABL1 Kinase Domain Mutation 3 PIK3CA Mutation Analysis 13 Analysis 4 NRAS Mutation Analysis 14 IgVH Mutation Analysis 5 TP53 Mutation
Slide 13: Accelerating Pace of Innovation
Accelerating Pace of Innovation 2011 2012 2013 (Planned) 4 molecular tests 10-color Flow Cytometry 15-20 new Molecular tests Implemented State-of-the-art Add’l NeoTYPE Panels MolDx platform in lieu of Kits 3 FISH Next Generation Sequencing 29 new Molecular tests ROS1 FISH NeoTYPE MolDx Panels FL – I
Slide 14: A Growing Footprint
A Growing Footprint VT WA ME MT ND MI MN NH OR NY MA ID SD WI RI WY MI PA CT IA NJ NE OH DE IL IN NV MD WV UT VA CO KS MO CA KY NC Nashville, TN OK AR SC 7k sf AZ NM AL GA MS LA TX Tampa, FL Irvine, CA FL 5k sf 18k sf States sending specimens Ft. Myers, FL 31k sf 14
Slide 15: Key Growth Drivers
Key Growth Drivers New Products & Industry Dynamics Market Share Gains Territories & Demographics • Continue to expand test menu • Grow existing customer base • Aging U.S. population and • Sublicensing of HDC products prevalence of cancer – Salesforce productivity – Cytogenetics/Flow systems • Diagn
Slide 16: Management Team
Management Team • Douglas VanOort, Chairman & CEO Operating Partner, Summer Street Capital Partners; Chief Operating Officer, Quest Diagnostics • Maher Albitar, M.D., Chief Medical Officer & Director of R&D Med. Dir. for Hematopathology & Oncology and Chief of R&D, Quest Nichols Institute; Director
Slide 17: Productivity Increases Have Offset Changes in Average Revenue/Test
Productivity Increases Have Offset Changes in Average Revenue/Test to Keep Margins Stable 100% 50% 90% 36.4% 40% 80% 30% 70% 20% 60% 10% 47.3% 48.4% 50% 47.1% 47.2% 0% 46.1% 44.5% 44.8% 45.2% 43.2% 44.7% 44.6% 43.9% 41.5% 40% -10% (2) 30% -20% -20.4% 20% -30% 10% -40% 0% -50% Q4 09 Q1 10 Q2 10 Q3 10
Slide 18: Quarterly Financial Information
Quarterly Financial Information ($, 000's) Q4 11 Q1 12 Q2 12 Q3 12 * Q4 12 * Total Revenue $ 12,893 $ 15,160 $ 15,611 $ 14,202 $ 14,893 % Growth (YoY) 47.3% 72.2% 49.2% 25.5% 15.5% Total Gross Margin 5,834 7,144 7,367 5,892 6,434 Gross Margin % 45.2% 47.1% 47.2% 41.5% 43.2% Sales & Marketing Exp 1,8
Slide 19: Key Financial Information
Key Financial Information Recent Share Price (2/22/13): $ 3.03 Basic Shares Outstanding: 45.3 M Current Market Cap: $137.2 M Diluted Shares for Reporting (MRQ): 48.7 M Fully Diluted Shares: 52.4 M Non-affiliate Float Shares: 37.9 M 52 Week Low/High: $1.48/$3.52 Avg. Daily Trading Volume (3 Mos): 122
Slide 20: NeoGenomics Summary
NeoGenomics Summary • Emerging leader in the fastest growing segment of the lab testing industry • Robust competitive advantages and product portfolio • Strong Management Team with directly relevant industry experience • Accelerating profitability propelled by revenue growth and increased operating