Genoptix (GXDX) 8-K Regulation FD Disclosure

2010 UBS Global

Life Sciences Conference

New York, NY

September 2010

Tina Nova, Ph.D.

President & CEO

Sam Riccitelli

EVP & COO

Exhibit 99.1

2

Safe Harbor Statement

Forward-looking statements contained in this presentation involve known and unknown risks,

uncertainties and other factors that may cause our actual results, performance or

achievements to be materially different from any future results,

performance or achievements

expressed or implied by the forward looking statements. They are

subject to significant

business, economic and competitive risks and uncertainties. Forward-looking statements

reflect our current views with respect to future events and are based on our current

assumptions and beliefs and subject to risks and uncertainties. The Company disclaims any

obligation to publicly update or revise any forward-looking information or statements except

as required by law. Factors that could cause our actual results to differ materially from those

expressed or implied in such forward looking statements include,

but are not limited to, those

identified under the heading “Risk Factors”

in the Company’s Annual Report on Form 10-K

for the year ended December 31, 2009 and most recent Quarterly Report on Form 10-Q filed

with the Securities and Exchange Commission.

3

Genoptix

At-A-Glance

Nasdaq

Global Select,  S&P Small Cap 600 Index, Russell

2000

®

Index

Specialized, differentiated laboratory                         

service provider profitable with                               

positive cash flows since 2007

Addressing unmet diagnostic needs                              

in hematology and oncology

Addressing unmet needs in predictive                           

therapeutics for solid tumor cancers

Established center of excellence for hematomalignancy

testing

with one of largest specialized physician groups in the U.S.

Delivering Personalized And Comprehensive Diagnostic Services

To Community-Based Hematologists And Oncologists

Located in North County San Diego:

Approximately 200,000 total sq. ft. in four

facilities, corporate headquarters and

diagnostic laboratories

4

Genoptix

One Patient

One Hempath

One Diagnosis

PCR

Cytogenetics/FISH

Flow & Morphology

The Genoptix Way

Comprehensive And Integrated Diagnosis

Community

Hem/Onc

Office

* Final diagnosis

* Treatment begins

Hempath

Consultation

5

Inadequacies of Traditional Testing

Results from 409 leukemia cases referred to MDACC:

27%

of

cases

were

overturned

due

to

a

wrong

diagnosis

18%

of

cases

required

a

change

in

treatment

and/or

prognosis

9%

of

cases

required

a

repeat

bone-marrow

and

re-test

Impact on patients and increase in costs:

Repeat bone marrow testing

Inappropriate drug treatment

Potential hospitalization and poorer outcomes

Potential precipitation or exacerbation of co-morbid disease

MD Anderson Cancer Center Study

* MD Anderson Cancer Center Study (MDACC).  Dr David C. Hohn, MD, Past Chairman of the Board of Directors of NCCN.  2008   

National Comprehensive Cancer Network (NCCN) Case Management Program

6

GXDX Business Update

3Q10 case volumes and revenues expected to be      

5-10% below prior quarter (2Q10)

Economics continue to drive change in patient profile and trends

in

physician practice management

Increasing competitive activity leading to market saturation, slowing rate of

new customer acquisition

Number

of

actively

ordering

hem/onc

customers

stable

at

1300-1350

New laboratory open and operational in July 2010, customer service

center in 4Q10

Proprietary product in development with pilot launch by year-end

Additional

major

payor

contract

expected

by

end

of

the

year

Acquiring patient data on clinical outcomes to support efficacy of

GXDX model –

update by year-end

Maintaining

goal

to

capture

15

-

20%

market

share

by

2015

Revenue Trends Reflecting Change In Dynamics

7

Oncology Practice Management Issues

Changing patient profile

–

Number of uninsured at all time high

–

High deductible plans and increased cost of

coinsurance reducing patient utilization of

physician services

(2)

Physicians experimenting with

new

business models

–

Selling

to

hospital

or

management

companies

(3)

–

Creative revenue sharing between labs &

hem/oncs

–

Bringing lab work in-house

–

Implementation of EMR by 2014

(1)

Margot

J.

Fromer.

“Community

Cancer

Centers

Weather

Rough

Economy.”

CancerNetwork.com.

April

14,

2010.

(2)

“Behind

The

Numbers:

Medical

Cost

Trends

For

2011.”

PricewaterhouseCoppers

Health

Research

Institute.

June,

2010.

(3)

“Community

Oncology

Center

Care

Practice

Impact

Report.”

Community

Oncology

Alliance.

July

19,

2010.

Practices

getting

“squeezed”

as

community

oncologists

are

forced

to

manage

margins

–

52%

of

community

oncologists

surveyed

are

seeing

a

decrease

in

patient

volumes

(1)

Hematopathology

Testing Market Is Stable But In Transition

8

COMPASS

&

CHART:

The

Transformation

of

Hematomalignancy

DX

10

Convenient

Order Process &

Clear, Concise, Actionable Report

11

Complementary

Service

Offering Drives Customer Loyalty

Combines multiple COMPASS

reports

Extends our personalized

medicine/service model

Integrates intervening clinical

actions

Provides a complete clinical picture

Provides hem/onc with valuable, specialized

diagnostic tool to track individual patient’s response

to treatment

Mapping Patient Disease Progression Over Time

Emulating Quality Model With Superficial Imitation

•

“Me, too”

approach based on appearances not business model

•

We will continue to drive differentiation with quality service

offerings and new, innovative diagnostic processes

9

Oncologists Value the Benefits of Genoptix

Hem/Oncs

Using Genoptix

Services

0

200

400

600

800

1000

1200

1400

10

Addressing Challenges In The Marketplace

Increase in regional competitiveness

Adding depth to sales coverage,

leveraging reputation for quality offering

Product imitation by competitors

Differentiating by adding new tests and

proprietary offerings

Competitive EMR purchases 

Strategic EMR support for key accounts

Weakened sales force effectiveness

New sales leadership in place in 3Q10, 

targeted training, new sales incentives

Increased pressure from managed care

Continued contractual negotiations,

additional agreement expected in 2010

Physician consolidation and in-sourcing

Targeted account management

initiatives underway

BM cases moving to hospitals

Initiating pilot program in 2H10 to sell

into hospitals

Challenge

Response

11

New Products & Services

Multiple Myeloma MRD  -

iFISH

Enhanced detection

of Minimum

Residual Disease (MRD)

Improved sensitivity

with immuno-

enrichment over conventional

cytogenetics

(iFISH)

Early identification

of disease

progression

Molecular evaluations

for Colorectal

and NSCL

carcinomas

Help

determine

optimal

treatment

options

Deepens

relationship

with

physician

customers

Extends the Genoptix

service

approach

to

solid

tumor

indications

Additional

tests

expected

in

2011

12

Reimbursement And Payor

Relationships

Non-

contracted

Contracted

Contracted business

–

~ 40% Medicare

–

~ 20% major payors

expected by Y/E 2010

Non-Contracted business

–

Reimbursed by payors

as an out-of-network

provider

–

Bill patient co-insurance and deductibles at

in-network rates, as permitted by law

Evolution Of Payor

Mix

–

Signed first major national commercial

contract with Aetna in 1Q10

–

Expect to sign second major payor

contract in

2010

–

Expect mix to gradually shift toward

contractual relationships over next few years

Continuously

Evolving

Payor

Mix

13

Putting Capital to Work

Reinvesting income to build long-term value

Increasing operational capacity

Assessing various opportunities through intensive

evaluation

–

Technologies

–

Partnerships

–

Acquisitions

Several strategies/opportunities under consideration

–

Expansion of solid tumor testing capabilities

–

Accessing new market segments to evolve with market trends

–

Complementary technologies

Growing The Franchise

14

~ 8%

The Diagnosis Of Hematomalignancies

Incidence Rates

375,000 bone marrows/yr

250,000 related blood-based

tests/yr

Hem/Onc

Physicians

12,500 hem/oncs

9,500, or 76%, practice in the

community setting

Patients

850,000 patients in the U.S.

150,000 new cases annually

= Market Share

= Market Share Projection by 2015

Genoptix’

goal is to grow its share of

the bone marrow market to             

15-20% by 2015

A

Large

And

Growing

Market

15

Financial

Performance

17

2010 Investments

2H 2010 EPS Impact

Laboratory Capacity Expansion

–

Grow HemPath team to 50 by Y/E

–

Additional lab support personnel

–

New laboratory opened in July

($0.10)

Sales & Marketing Expansion

–

Grow Sales team to 100 by Y/E

–

New Customer Service facility in 4Q

–

Selective investments in client EMR

($0.09)

Growth Investment Builds Strong Foundation For

Leverage Beyond 2010

Committing To Next Phase Of Growth

18

Financial Summary

($ in thousands)

2009

2010

Revenues

$84,487

$98,336

YOY Growth

--

16%

Cost of Revenues

32,201

39,245

Gross Profit

$52,286

$59,091

% Gross margin

62%

60%

Operating Expenses:

Sales & Marketing

14,321

20,851

Sales & Marketing % of Rev

17%

21%

General & Administrative

13,881

17,465

G&A as % of Rev

16%

18%

Research & Development

527

809

R&D as % of Rev

1%

1%

Total Operating Expenses

28,729

39,125

Income from Operations

23,557

19,966

% Operating Margin

28%

20%

Income Before Income Tax

24,491

20,496

% Pre-tax Margin

29%

21%

Net Income

13,816

10,945

% Net Income Margin

16%

11%

Six Months Ended June 30,

19

Summary

Targeting

15-20%

of

bone

marrow

market

share

by

2015

COMPASS

and

CHART

service

offerings

are

transforming

hematomalignancy

diagnostics

in

the

United

States

and

spurring

competitors

to

emulate

our

success

Continue

to

strengthen

sales

organization

to

convey

value

proposition

and

combat

new

entrants,

targeting

~

100

sales

reps

by

end

of

2010

Economic

pressure

on

community

hem/onc

driving

new

oncology

service

and

business

approaches

and

we

are

evolving

as

appropriate

to

meet

their

needs

A

developing

pipeline

of

new

products

and

services

for

liquid

and

solid

tumors

launching

in

coming

quarters

Actively

pursuing

objective

evidence

of

the

efficacy

of

our

diagnostic

model

Long-term

outlook

for

solid

gross

margins

in

mid-

to

high-50th

percentile

and

operating

margins

in

the

high-teens

to

low-20th

percentile

with

shift

in

payor

mix

over

next

few

years

Proactively

managing

resources

to

improve

efficiencies

and

control

costs

20

Thank You