Neogenomics, Inc. · NASDAQ:NEO
Neogenomics — Investor Presentation (January 2013)
18 slides from Neogenomics's investor presentation, January 2013
Slide 1: Company Overview Presentation
NASDAQ: NEO Time Matters. Results Count! Company Overview Presentation January 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 • Innovative “Tech-Only” business model creates strategic partnerships with customers • Rapidly growing industry undergoing consolidation • Strong Management Team with large cap l
Slide 4: Consistent Historical Growth
Consistent Historical Growth Annual Revenue ($, 000s) Tests Performed $50,000 80,000 $40,000 60,000 $30,000 40,000 $20,000 $10,000 20,000 $0 0 4
Slide 5: 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 6: Key Growth Drivers
Key Growth Drivers • Demographics and Market Growth • Market Share Gains – Tech-only model facilitates Partnerships and Alliances – Sales force productivity • Innovation and New Test Development – Expansion of IHC, Digital Imaging and 10 color Flow Cytometry – New molecular genetic test offerings -
Slide 7: Exclusive License Agreement with HDC
Exclusive License Agreement with HDC • Covers 84 patents and pending patents relating to pattern recognition technology, digital image analysis, biomarker discovery, and gene & protein-based tests • Unrestricted sublicensing and assignment rights • Success-based license structure - $3 MM in cash and
Slide 8: Cancer Testing Market Dynamics
Cancer Testing Market Dynamics • 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 15-20 labs
Slide 9: 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 10: Boomer Impact on U.S. Cancer Market
Boomer Impact on U.S. Cancer Market 77% of all Cancers Diagnosed are in People Age 55 or Older, the Fastest Growing Segment of the US Population (American Cancer Society) 10
Slide 11: Cancer Testing Services
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 window view o
Slide 12: A Growing Landscape
A Growing Landscape 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 12
Slide 13: 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 14: Volume and Price Growth
Volume and Price Growth 30,000 28,846 $700 661 659 652 28,315 28,000 624 613 26,932 606 603 602 610 603 600 587 26,000 569 567 572563 $600 552 541 24,000 522 534 523 504 509 572 570 22,557 493 484 502 22,000 479 449 19,977 $500 20,000 440 18,358 18,000 $400 16,000 15,396 14,464 14,349 14,042 14,477
Slide 15: Historical Financial Information
Historical Financial Information ($, 000's) 2007 2008 2009 2010 2011 Total Revenue $ 11,505 $ 20,015 $ 29,469 $ 34,371 $ 43,484 % Growth 78.0% 74.0% 47.2% 16.6% 26.5% % Growth Adjusted * 70.0% 25.4% 30.2% Gross Margin % 52.0% 53.3% 51.6% 45.9% 44.7% Sales & Marketing as a % of Rev 20.5% 16.8% 23.4%
Slide 16: Quarterly Financial Information
Quarterly Financial Information ($, 000's) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 * Total Revenue $ 8,805 $ 10,466 $ 11,320 $ 12,893 $ 15,160 $ 15,611 $ 14,202 % Growth (YoY) 4.6% 23.3% 30.0% 47.3% 72.2% 49.2% 25.5% Total Gross Margin 3,865 4,656 5,074 5,834 7,144 7,367 5,892 Gross Margin % 43.9%
Slide 17: Key Financial Information
Key Financial Information Recent Share Price (1/10/13): $ 2.63 Basic Shares Outstanding: 45.3 M Current Market Cap: $119.0 M Diluted Shares for Reporting (MRQ): 48.2 M Fully Diluted Shares: 52.4 M Public Float Shares: 42.7 M 52 Week High/Low: $1.48/$3.20 Avg. Daily Trading Volume (3 Mos): 134,305 17
Slide 18: NeoGenomics Summary
NeoGenomics Summary • Emerging leader in the fastest growing segment of the lab testing industry • Strong competitive advantages and product portfolio • Strong Management Team with directly relevant industry experience • Accelerating profitability through revenue growth and increased operating lever