NEO - Earnings call transcript Q1 2021

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Operator

Good morning, ladies and gentlemen, and welcome to the NeoGenomics First Quarter 2021 Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Doug VanOort. Sir, the floor is yours.

Doug VanOort

Well, thank you, Holly, and good morning, everyone. I'd like to welcome everyone to NeoGenomics' First Quarter 2021 Conference Call.

of introduce to on my lot first, today, the a me let fellow have exciting share news but call. We team members

are Division; via our Chief this Mallon, joining Doug George our Cardoza, me morning Corporate Kingdom our our President CEO, Officer; Myers Development Joining Pharma of Charlie morning of Eidson, and Services us from Chief Financial our United Bonello, Officer; Executive our headquarters new Also President Kathryn Officer; Bill Relations. McKenzie, Strategy Manager from Fort Chief Brown, Mark Investor is Informatics Dr. Division; of the Clive phone this and Inivata Morris. our

Before language we read will statements. prepared the Charlie about begin standard our remarks, forward-looking

Charlie Eidson

our condition about materialize, Should operations, are statements, call uncertainties historical these and which or forward-looking current undertake those after results as today, in are nature, differ from events circumstances expectations more should the incorrect, This forward-looking beyond growth obligation may of and that certain of outcomes no involve These of substantial risks conference update made call and performance, control. today. and could materially are or our assumptions statement and represent statements contain on statements. financial facts Any to our reflect statements. forward-looking which to speaks one Any the forward-looking indicated actual statements such underlying only opportunities. or statements we prove of this uncertainties, their not or any beliefs by risks statements,

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call for Doug, making want is website know shortly this call Instructions] the the to turning prepared I completed. be [Operator our let of section that remarks Investor available everyone call Before copy the back to morning's will of a Relations we on after our

Doug VanOort

milestones quarter conference capable the X our review Mark's rationale morning Kathryn Charlie. acquiring more Inivata; company in-depth and strategic acquisition in you, announced of Mark will expectations we financial of acquisition. Brown Morris, and the this a and Inivata. financing the for an of our Mark call the the impact Mallon's CEO, thank leadership. Doug the of new our share Inivata's few by begin will and overview then provide some Clive commentary. and NeoGenomics. We'll Well, weeks discussing Today's ago, started our represents very important has transitioned our acquisition a the I company's two Inivata history: first call call as details CEO strategic Inivata acquisition as of with will both on then share well. about results follow will to

leading for vision observations remarks. few Mallon is weeks Mark NeoGenomics We formal his and the about will future our of wrap our first Mark to then transition his to up some excited company. to share

then time for and We will questions answers. have

strong in to comprehensive fortifies access oncology become be with the detecting tumor test growth acquisition Bolstering into world's solutions diagnostics, our an and of and technology unrivaled Inivata's circulating The of monitoring. vision accelerate best-in-class menu Inivata oncology our of position with excited technology liquid about physicians combination testing represents trajectory. detection to our continue allows NeoGenomics' competitive allow company. Inivata's our to strategic leadership, our achieve and us a testing as prognosis, today's and Channel for announcement. therapy move powerful important and position for residual leading oncology biopsy already the for the very we for technology leading channel to patients diagnosis, are also NeoGenomics to now and will The DNA disease We of provide combined selection company post-intervention and recurrence addition aggregation, their scale information can the dynamic. community to

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Inivata the their with an on Board. the greater We strategic and commercial have part as year partner of investor serving at spent their as the team and

Inivata we have been success quality of NeoGenomics and are is fit Inivata's focus, the our resource development. our impressed shares and of option X more combine and culture on the the we that call focus to bring product this of believe Now exercise cultural organizations accelerating to with much patients. team. Inivata and We to of the our our due

lives. diagnostic and answer broadest as set is therapies. patients that the of same of part of accelerate cancer new for cancer diagnose the we Together, organization. develop technologies an questions with the to unparalleled spectrum can diagnostic We're treat and Our tools provide partners adoption and patients patients' purpose save common pharma we to to convinced to physicians of important

of Division's community Clinical are treated. of XXX where has XX% than tests physicians with most offering broad cancer Our greater patients approximately resonated

largest in the our us clearly over unique around of Division's we Liquid the broad diagnostics. has in clients, top biopsy diagnostics change to for Acquiring cancer. exciting diagnostic for addition as and companies continued to pathologists Inivata continues serve their oncologists in leadership Our in ability use test treated emerging leadership Inivata's now technology numerous resonated offering practice have ctDNA Perhaps an the and oncology our is just residual strengthened are extensive to technology standards minimal practices, disease and testing with is most significantly in XX world. each worked monitoring it and biopsies emerging with as technology Inivata's is liquid market medicine. positions time Clearly, we Community and of as the and potential expect to develop. oncology diagnosed technology liquid biopharma and of Pharma recurrence. the for us including the area are an how in exciting beginning application their to the this customers biopsy detection patients of has positions utilization with for that world the of of grow new the

to to of the $XX address need some patient U.S. this excited in billion opportunity We RaDaR, are to develop product, in particularly be alone. branded excess and in Inivata's important market about which estimate sensitive the highly commercialize a

for in growth on have you company's growth and and be has These Informatics both created a execution have Services each built leadership of of successful market last then a know, for future adding our shown We Pharma continued important develops, accelerate long-term market our to acquired our acquisitions. oncology X organic we we double-digit for our our leadership oncology in unit, history represents soon have as will as and strategy units complementary X, As as Inivata, market, the Slide and our competitors Clarient and through over the important and our To above position growth MRD a the many combination years, growth. very successfully scale business built levels. to out we inorganic and believe company profiles, clinical our X several the organic integration in of fourth we business our believe businesses. of the achieve and Genoptix, flywheel business. and acceleration the execute Leveraging formula we historical on scale synergistic

company's spent care I Inivata to increasingly the through Clive in a including leaving at opportunities around core acquired California would R&D and last his they an the a walk Morris, journey. growth of did industry, we sequencing At with company. as in cancer was diagnostics, oncology and patients ever, can described than the have plan and now within years through trials, and It's since ahead. I we story. Most CEO, in to liquid time that pharma and the introduce profile to investor pharma presented oncology And background clinical companion innovation their we in practicing years would office for millions we potential has to greater and a leading developmental Clarient next-generation of the like build solid I early investors, our As do few Aliso XXXX. from in Inivata, who X that, the what ago, focus With affairs my benefit time, is with on global on through said better business Viejo, days time revolutionize more. expertise presentation Clive to manage exactly and importantly, old biopsy. we an that found development, we impressive physician, the as success we medical our a Inivata's

Clive Morris

a Doug. the Good all today. on combination. morning, to NeoGenomics. the call excited cultural Inivata you, Inivata We're And about echo very fit the commentary Doug's Thank between on I'd It's everyone. represent and pleasure

believe been We an U.K. well-capitalized life by of biopsy a to NeoGenomics in company the leading who well Our Research our leading out accelerate in liquid today, the a in in talented U.K. that mission with them. by our the platform the established science across liquid leading and Park, of our millions need X from proprietary and has far and XX have have And we the of supported in Carolina. will the we Cambridge, combining facility team The commercial products was highly North a sensitive in world U.K. and biopsy both spun -- and people assays. laboratory Cambridge U.S. about sorry, to the around investors University oncology the U.K., patients cancer technology engine so like U.S. developed CAP/CLIA Triangle deliver R&D

the of turn platform, As presentation. the an to X in overview Inivata Slide please

sequencing cancer. XX-gene oncologists with the patients test developed developed biopsy community The R&D, the reimbursement cell sensitivity grow is as NeoGenomics is more we has the As growing with multiple uptake biopsy across a comfortable X optimized to regulatory of and InVisionFirst-Lung liquid year, RaDaR, and that and last lung developed Doug U.S. for we'll complementary testing. panel liquid bring capabilities have mentioned, InVisionFirst-Lung best-in-class We've technology stage new with achieve a is non-small and since been and levels applications. assays, advanced platform NeoGenomics. steadily in also next-generation commercial commercialized biopsy mid to liquid

levels Importantly, X the in coverage all coverage, the has by million The with test the days the have calendar of test per at for from quality XXX reimbursement turnaround the been lives to results draw blood $X,XXX the reimbursed insurance the oncologists from commercial of Medicare and feedback U.S. test, is time on service test. And positive. approximately

applicability. to pan-cancer The is Our was in second earlier for device the year. residual tumor-informed December commercial in XXXX, assay designation CAP/CLIA RaDaR. from is validated and test facility a has maximize Carolina the has of been breakthrough assay optimized testing recurrence North RaDaR FDA This received sensitivity. disease our and this test and

that Now track our bioinformatics X, in these this. And setting, data allows and provide is of slide the DNA the this recurrent to we platform the and cancer MRD expect RaDaR shine can for residual on drives disease therefore variants down in core to presented of RaDaR cancer, Slide XX known our combination from the proprietary to is why lung tumors exquisite are versus in testing frequency in The as has shows through leaders but important and technology success this X.XXX% well. performance is data driver very on cancer lower. early. and equally We Slide The the factors some well-known pick sensitivity up an breast our apply to clinical solid patient's X the able We is landscape. so levels market-leading to allele the great this. low. to X important. technology even equally crucial you in study sensitivity RaDaR's of specifically in Sensitivity variant achieve these early-stage designed assays performance. they're cancer evidence published recently compared believe into minimal be recurrence circulating will studies tumor very assay of post-surgical setting, InVision But the advantages -- of and pipeline. from genetic to see to from other competitor been

be to cancer patients of In have MRD published along a the the for MRD patients and adjuvant blood, RaDaR the shows can remission. optimize post-surgery patients general patient testing circulating for like test can compelling, of on potentially been shifting X typical their therapy. that journey cancer use cases also the journey. has or indicating setting, of DNA impact a the the cured tumor levels exciting can presence and therapy RaDaR patient about data paradigm most the and based are RaDaR also for RaDaR Slide for for testing. in is not solid While high In sensitivity residual aspect in monitor the for potential by tumor RaDaR the adjuvant clinical test the perhaps surgery. be used testing future, to clinical for the recurrence help may their for used able be help that dosing to are in disease duration select it

recurrence an current in MRD As outcomes the as action into it setting, detect shown market patients. very the is of being care sensitive this recurrence well stages early has developed opportunity majority develop has of Overall, slide, or $XX we're on may On By by more. disease of a taken will see every where XX% be assumptions and share. year, around that believe Slide test And X testing with a MRD believe of community these we market the believe States MRD potentially before from may are million than testing. NeoGenomics standards for as molecular-level more ability given imaging. a United the testing. improving market using there the earlier featured cancer and we in identified being you test the Even new would clinical earlier, the RaDaR in earlier, catching patients X, market we can utilization we the billion alone, that massive translates for cancer conservative MRD leading market expect of the of over this be cancer pricing, that diagnosed benefit the to estimated

MRD While the is oncology in for the has revolutionize of biopharma and responses highly MRD testing post-operatively the ability the application quickly trials to to very interested way clinical market stages in is the development, and to clinical potential conducted adjuvant its therapy clinical potential patients early of determine Slide and are early-stage become immense, major alike. the have some detailed player for trials these markets. milestones a we XX, appealing for the in is On Clearly, we to in outlined is RaDaR. to key biopharma plan a MRD today.

We of that as to summary Brown, collaborating early conference, turn acquisition in additional and and review June. are the well we'll already through which in April's unveiled of the the breast year, in at allow cancer following months terms December, a around the turn and validation head will strong should data reimbursement deal will it process. to data morning. I assuming our the announced who now mid-XXXX, this provide strategic as a cancer X in the CAP/CLIA Doug and completed We be neck pathway pharma over details of commercialize anticipate of us financing lab clinical the market with clinical was in at believe for AACR position we recently data ASCO we in to submit MolDx

Doug Brown

share to with we agreement Thank On of year you part commercial Inivata first Good morning. terms of few partnership Slide Inivata pleased a the agreed are of the you, with acquisition, weeks negotiated during to we the the ago as formally pandemic. terms we XX, over Clive. our

for to fixed and the million U.S. remaining a struck our commercialize As of appears in fortunate and since set for InVisionFirst-Lung acquisition deliver XX, be timing part expiration price our value-based was had in liquid Inivata's $XXX the like we advanced XXXX, have But would negotiated highly the of ability December until for May a remaining today, we price purchase platforms what formed agreement Inivata substantially biopsy feel deal would in liquid of call million that our we Inivata. technology and equity acquisition date we increased shared and making $XX for we with year, our interest. now not company, to a announced Valuations be of very purchase The shareholders. that that option our XXXX. we proprietary our the option announced we for to the last of minority investment with we biopsy

continued liquid past of we the to and the technology. biopsy in confidence months, XX sensitivity Over Inivata the gain power have

confidence at Inivata. also tremendous have We in developed talented team the

exercising option of plan. we a purchase months As are ahead Inivata result, to our X

Inivata syndicate over investors, targeted NeoGenomics strategic and, as focus including existing that of we a shareholders the with $XXX announcement, a confident existing acquisition on financing shareholders, this which strategic today's a view one. are right are by And important We to with is importantly, of specialist is dozen conjunction also announce capital new oncology. move represented investors financing raise, a in pleased We million. a private this

to have combination technology the our support of forma Pro channel We pleased is leading sheet balance quite are transaction, who investors leadership. today's the strong. attracted and for

ample the we have of at million to our some providing opportunities. hand, of development than pursue discuss to technology quarter McKenzie to over accelerate turn other I funding strategic call X of on cash the of We $XXX details greater while now Kathryn results. will flexibility financial Inivata further

Kathryn McKenzie

Despite Thank revenue year-over-year total grew the million. the ongoing you, X% $XXX Doug. in pandemic, impact QX to of

our X significant COVID-XX million We oncology quarter our and of capabilities. driven testing NGS, revenue PCR Importantly, Services $X COVID-XX and revenues during our $X decrease in in wind million X. contributed core in noted down less testing Informatics. X% decision the Pharma strong increased year-over-year, million to $XX from down made overflow and therefore quarter demand growth quarter, in COVID-XX a testing capacity for than the by

a leader of the term capacity and up service short strategy our in COVID part this as nature oncology in and As testing. testing a we reminder, to not expected be brought address help U.S. overall to shortage of

our impacted by COVID-XX the core cancer volumes in February. noticeably on clinical earnings we our call, January incidence and were As discussed February

volumes we as clinical meaningful to daily start over recovery in showed the XX% of growth quarter, X% March volume XXXX. Despite QX XXXX. core delivered our volume the challenging growth record versus March translated signs to However,

continued record recovery April encouraged that daily we and vaccine with will on remain rates and COVID-XX rollouts continue Importantly, strength into decline. volumes as steady this a are very we incidence

see pleased that of $XXX to year was were to Clinical full we Finally, per revenue Division XXXX. for the test $XXX compared

not encouraged, recovery. way worth a is back also are all are that noting we full to we While it the

this restrictions. in with see XX% growth restrictions from XXXX. the versus business of continue of continuing Services are volume as over we We And a believe nationwide areas course growth contrast more for restricted rapid well for country the that us Pharma to loosen less our its year-over-year, those bodes trajectory. grew

$XXX As a oncology new assets is of on quarter but quarter, demand million be only $XX in closed for We the strong. essentially did reminder, in the business last backlog. HLI year's to growth acquisition Not a XX, all of XXXX, during record organic. improve so continues million revenue conversion signed January in bookings very with QX, exiting this this the

to than Pharma We grow rapid portfolio continue growth ahead. is for our and better that and customers ever additional of believe biopharma Services robust before positioned poised

also integrated Informatics into We organization Division. Trapelo rapidly the Health our have

to the We capabilities more oncologists. are the IT to of our while capabilities Trapelo leading tool strengthen for year. decision commercial on More leverage we half reach an leveraging support customers second come our already in already further to

to QX, February, in volumes. margins Our in on lower due challenged less January efficiency gross were and particularly

been the first over have the challenged by in year, during the last We quarter. including volatility volume

our returns. wind unused when inventory. COVID-XX down a volume QX decisions believe charge to charges that gross was to us $X.X invest laboratory, XX.X%, these resulted our positioning our are QX in significantly XX.X% and our million testing Clinical charges. COVID-XX as margin were in gross related by infrastructure However, which excluding also to including margins impacted exit COVID-XX to overflow decision take share to in we continue well

COGS key $X and EBITDA investment COVID-XX time. write-off year-over-year a improved more QX from payroll As to grew increased XXXX. XX.X% million for that over only $X.X PCR Operating million revenues margins on includes areas of QX we growth $X increasing of reflects XX% as we normalized by people, lower we strategic Pharma in laboratory as Informatics, Services economic testing continued or margin Services and gross volume and in previously such year-over-year as yield return well equipment. opportunity and In million Informatics. costs historical our to growth environment, acquisition expect investment expenses XXXX million, XX.X% in $X and margin including initiatives, XX% with volatility, infrastructure Adjusted gross same million discussed over $XX by support Pharma clinical to rates, period. QX gross in long-term with a continued for or costs, and in QX, with in to margins payroll-related rates consistent line as expansion

each Excluding expect we our XXXX. of to recently EBITDA contribution announced increase succeeding quarters X the of organic acquisitions, in our

Turning designated state-of-the-art million headquarters securities, of exited excludes $XXX which the million the to laboratory the of global in cash Myers, of X in in cash for closed in to $XX Trapelo $XX restricted additional balance marketable new an April. quarter, cash quarter our Health, construction sheet. the end million for Fort which We with and in Subsequent acquisition Florida. and we utilized

these of and and the we internal strategic the the pursue us acquisition inorganic invest in recently a as be cash million. opportunities. funds Inivata strategic puts financing priorities We growth our continue position raised today, in to $XXX balance in announced believe to of to excess expect well acquisitions in this as strong announced Following incorporating

our guidance. positive the we are Given the prepared year vaccine progress introduce across made to the business being in and XXXX country, trends full

year the range half to back in We We the for to growth for revenue further million. million very could annual million XXXX our $XX of to and in the of what $XXX to forma support project driven is back support We a of year excess of of Presuming from RaDaR, in in and year clinical anticipate we to submission that by revenue and reimbursement run half strong $XX million. Pro by pandemic, business. Pharma to Services' tool top rate of the entire adjusted further $XX Trapelo full rollout and for range XXXX XX% approximately anticipate expected of development and of consolidated accelerate be for dislocations $XXX growth Trapelo the decision development million. be offerings. be excess for will million COVID-XX Inivata EBITDA the in line losses $XXX be RaDaR the acquisitions, no be XXXX our expect the to the operating full fund market related

are both importantly, our provide very the We excited about of acquisitions,and will clinicians, to partners they most innovation recently pharma and patients. announced

for expect from material XXXX, and material XXXX. not However, RaDaR to we Particularly we These amount NeoGenomics of expected is rapidly, revenue transactions. evolving and profile become near-term portion MRD, for a stages, changing these are do at the NeoGenomics. the while are the acquisitions early are XXXX markets in a revenue not still profitability until of

we that move. is the in investing turn the back the now over I to right However, Doug will of future VanOort. strategic believe call oncology

Doug VanOort

Trapelo list and experience Well, interviewed Mallon like broad to for the have very of of Health Mark time. formally we to I'd thank exhaustive Mark's acquisition and caliber. company Mallon able a fortunate a and to of We with capable were you Mark introduce feel CEO. talented many We Kathryn. of be recruit and as skill now the that of certainly we you, a someone lot very Inivata, of wealth with is addition excited leaders, Mark at to recent an first a our executive our about the set.

Mark Mallon

Neo the testing by by the labs and and Florida make have in weeks opportunity our Two can the Neo exceeded. I people. entire is the to to can California, chance a and clearly visit its for quality role, excellence leading because saw why world. cancer patients inspired company enthusiastic and had team the and in expectations to the value-driven I impressed I I in for Neo my of been to lives joined mission known say its incredible Neo was for see Thanks, I I a into warm and thank major customer and major the because of talent service. passion the and cancer become information already was you difference welcome. in I've Doug,

the team X opportunities teams plans working and I and fantastic these efficiency a was our with the see in to growth opportunities to saw, all by of accelerate improve to of of our businesses. patients. both I spent been day through the review science automation. and I of terms I've urgently future R&D able excited each assays have behalf quality We and on divisions, in

think Finally, about with customers and to their The and is focus incredible for on focused great key opportunities ahead on we've I'm accelerate going Clinical In of Neo my the business automate fast-growing sure of ensure to the company forward. believe in XX our and already stakeholders, Fort more processes organization successful opportunities the learn especially multiple is to investors Division, I launch NGS Pharma engaging annually, simplify there will ensure key our assays, our the are including be the opening U.S. business our clear new only expectations first to make to opportunities to started growth continue already also laboratory up days our I'm the Myers. beyond I'll just while focused and we be this of our than Division, the especially the I Services are the In liquid XX% portfolio drivers biopsy growth. there tests. of and This portion on of growing further.

a labs making decision and be support the Asia global platform these markets. with customers. on and the rapid starting outstanding Trapelo newly demand we'll Informatics, Europe meet and our We right this rollout, for in platform growth have team for ensuring the an in sales In our testing laser-focused we customers have high oncologists, to excellent of in staffed ready capabilities existing

remain time meet or to opportunity no confident for today become Clive build these a Morris working excited testing exceed the an leading leading announcement the to approval desperately global a Inivata separate lose. reporting our MRD lines is to believe faster, and to continue to opportunity unit, team in diagnostic represents There very and his will for launching directly into results and gaining with with to insights. entire for me. you. areas. Inivata need needs, about physicians I'm we the franchise Clyde am RaDaR cancer Neo, RaDaR care the who I time better first meeting Finally, acquire I I'll in be Inivata. Neo to back Charlie, Cancer company. will our President MolDx ensure patients them as market. and business information that and

Charlie Eidson

during only this free we a been like up session, questions please Instructions] and we the At [Operator questions. question, call the conference matter you and now email our call to open for webcast the addressed us like the submit listeners. to call-in at listening Q&A end feel Incidentally, the if call may address you if would your charlie.eidson@neogenomics.com for by are will via already this hasn't to point, Operator, open questions. would up subject at to

Operator

today [Operator Instructions] is from Souda. for coming Your question first Puneet

Puneet Souda

Puneet here from SVB Leerink.

us closer in when and is more of where you the part would of into you entrance of the the just an clinical you're also approach measured to Wanted types new MRD, InVision on with the if first And taken early Any the where the overall penetration And to serving what view congrats lastly of setting going view are on here? helpful. we both Is and with in the Maybe adjuvant Neo acquisition of an adjuvant you company. provide and the and And market which in you assay. can number getting also traditionally to a terms market to were community RaDaR on NeoGenomics the seeing and data into sure. should are working board. with be a you that that a important what in sort there these if Maybe other terms can a then is expect setting. Clearly, talk there to for miss indications of could be setting trials, for have including entering So provide for would are MRD. community market first sort you provide liquid assays, definitely for all, that you the in about get you of of is. what on working Doug, franchise? have you Lung? with lab expectation do we'll your great Mark, is what my actually question This oncologists

Doug VanOort

to thank the much very to in. try ask and answer question. Puneet, weigh those of our teammates a you We'll for few Okay.

to of we community marketplace. traction you? have penetration, in the X Neo One of the First the in don't in the enter both assay currently the over MRD market the we turn Mark, is biopsies terms is gaining as setting. we why Inivata But have are the and we do InVisionFirst-Lung liquid assay, that and all, marketplace lab other

Mark Mallon

So great question.

couple a sense reasons that to us there's think it move now. makes I for of

But we leading So community uptake. biopsy already -- the be gradual think do liquid to and we're in course, first we the seeing be all, and will be the building a of have we're to way, setting, of increasing realistic. capabilities able of This I we that. adoption are an to

be a part great so really bring think we'll in board position be MRD acceleration to get and and in we as of early. that And we on beyond, 'XX in

we I with RaDaR. us think quickly. for mean really really, Inivata's to important for put is going will allow and category. to to been market already our the companies, top just and heard, accelerate is asset last of pharmaceutical together business. point the the can working highlight is Trapelo are we when capabilities our and advancement will And the as what This penetrate position the in of want capabilities think MRD combining growth you've that our be the And I And that with something with Pharma I companies. a also that thing that XX second that Services tremendous think us pharmaceutical has leading I clinical the with

that, choices make increasing what's is designed they're about is just an support that is so to solutions. think right and with oncologists the now to too critical array Trapelo, One things to that point, making be going exactly whole to on is the help of as using is oncologists exciting do increasing the getting community dealing from And number I of tools. of decisions the

together I strong to pieces in a we're we've So and sort all think the make got success this oncology. coming of already

there do maybe about? think Now we for Doug, get I we're be that And to growth the still, something reasons. but market ready Clive I for think key on potential. to in be ground a question, the it There'll want Is realistic. we gradual was floor. And those talk have this, to a to about

Doug VanOort

Yes. that please trials see and you the space. how clinical pharma the question address if Clive, about you would asked Puneet MRD in

Clive Morris

Thanks for Yes. the question, Puneet.

As December we year. CAP/CLIA validation mentioned and concluded of through last the in assay underwent that

from clinical into clearly head meeting neck AACR recently. the now some breast the and early and data cancer virtual side the We So trials. we're moving at presented from analytical

meeting on numbers retrospective June. as the data archival are of we as have they're as One across ASCO they validation of will data the preliminary we cohort, more exist. number the We'll was to be in use, initially complete and lung studies study, ongoing prospective presented settings. our Having that to work, cohort, studies now and study data And into an historical update one say, cancer well with virtual those further increasing completed an last at of year. updating different prospective early data, we an I sets was getting where LUCID a that

we collaborations multiple types. of also span and So as partnerships number have we academic well, tumor a the and different biopharma

prospective report then in data additional set and And the coming through could the I a those see data think out studies to run to as relationship initial be sets, sort suite data expect course, of so then through. as retrospective of announced biopharma data will coming being a you increasingly as up see from of future, but from well

arrangements. So expect multiple type to from collaborative different those different of types see across tumor

Puneet Souda

you MRD most as are highlighted if at of little some at I the touch see the coming know but and still, there. could That's Mark, NGS helpful. opportunities? Obviously, just this vantage get next and of Weiss' shaping with organization, see look market where just what's early a some you how on on, this to terms from some ask sense you -- could the there interesting do wanted the you in you as Got it's the the departure -- on And of do from opportunity? look pursuing seat. a update And CSO it. bit into Where do the briefly very your I you getting see how someone there background, for an was point, plan pharma on -- I of up? I And the Dr. if also, morning. acquisitions

Mark Mallon

support So we Puneet, think than I applying but already I that the will And is do from say, I XX%, have for me, a pharma growing the and biopsy set had biggest highlighted battery faster great a and And the simple which accelerate got number of actually we've that the from for more. new NGS These Neo. to services think oncotechs, capabilities like reimbursement as it's of we to support. add those. I starting to the these or of the -- as products, biopsy liquid whether can where opportunity of can key actually is think one and some assays mobile going are uptake new we're we success liquid be I for initially, to is lesson are a something

marketing. I have to increased got think of in focus you've sort

Neo biopsy. to direction. basically next-generation focus generation. have on on to We've An precision force going example, again, adding increased on was we're sales moving be data in got focused specifically sequencing liquid medicine that products an focus to a small -- a You've and got already

forward we pharma started already that accelerate with of working further. Maybe I the the Weiss. business. about in -- types working They've And already other opportunities team. to tactics should that on happy those And mentioned talking apply earlier. Dr. so that -- talk I'm And will about Doug but the has this of this, that to more can parts massive look I think other

Doug VanOort

served have became Medical and of who the NeoGenomics And as of through Dr. ago would grateful point didn't a Clarient as has see, for I We're Medical of has the our to of Weiss question we Weiss. Thanks, pursue had part he announced Yes. those like Officer. here. resigned Chief then as part Dr. our a morning for Weiss, to acquisition Puneet, number this to and you Dr. about interests. Chief Officer our company, years other make

our have, focused PhDs XXX company, in oncology. in about MDs We and all

bench a have deep we strength. very So

leaders We capable and very in have company. medical directors our

technology of new in with whole already. R&D medical leadership we a to the Now and in in of addition here type R&D we're that leadership and bringing the Inivata, addition had in

So we're joining very very going new forward. the that people the and about NeoGenomics have. about our excited that excited the acquisition, about we excited We're we're Inivata very are from team team

Operator

David from coming is question Westenberg. next Your

David Westenberg

is David ask I'll Westenberg upfront. from X This Guggenheim Securities. my

on clear maybe a a you approved walk little us confirm can fill the you're component helpful. a more XX, I in of to a if the if didn't pursue it's closed right what flavor just strategy? you rails in First, FDA, means? time can Slide give to you us this frames the expected just future. close this this close great you I to searched guide and in or a of -- terms terms a slide exactly little terms of say blanks. maybe in So that? it's you XX a if going is want revenue, now those even do through Again, in maybe And expected also then great. in significant hear of but FDA are Maybe crazy, is keyword bit of when terms Slide or Would you us get close Can bit in a date. I'm of And to be can significant just revenue you help

ask question or any terms is incorporate call AACR. need ASCO there. you Second a us for presentations obviously Can you that stopping the of of the products pharma -- Inivata's have? you lot and on questions. Inivata potential And of There's I'm presentations into that pharmacy might you would and incorporate give business? analysts kind flavor then on any data in to And of business, what would on

Doug VanOort

We've for to right, through date got The take Well, All the the easy be those one. Inivata close typical David. thank for regulatory mid-June. questions. you go I'll around approvals. should

In over that frames, him ask I'll turn that to and FDA time and address question. terms to milestones Clive of

Clive Morris

David. happy Relative Thanks, track of I'm -- type Good Doug, think to. as activity. of question, a parallel and this

that anticipate start lab can So submission and as the we for next of slide think year then LDT a MolDx And test slide assay validated through a reimbursement commercializing now, phases. that effectively the that the generating and as moving the at the CAP/CLIA development And market. says is commercialization U.S. through data. as then says,

design FDA history device assay and full mentioned, cetera, have the we However, designation breakthrough as et FDA enable been to an an do to control, has design path. already. And built we

So in something bring and will that's then look parallel at we that through.

Some the through through stage FDA. are chemical depends longer for for on that probably and course, trials, it leading that of

taken by it's And a the similar the a, given financial approach it a like familiar companies with paths. you're sort X and be overall path and so will to Guardant of by others, mentioned

Doug VanOort

revenue, for Thank you, about David, your then, question address will Kathryn Clive. that. And

Kathryn McKenzie

Yes.

There is very exists the is early stages. today, Inivata. pharma that still compared the revenue revenue. David, for are minimal much very opportunity the very And clinical in NeoGenomics' albeit some to So it's early still total

million XXXX, expecting in $X InVisionFirst-Lung. primarily by than For less revenue, driven we're

as take higher. likely we're the MRD as get digits it's clinical that the how XXXX. into and development looking at time. time line I over Definitely the we're overall going just come we're more really looking community there's later the So on oncology as to that's expect at double the of oncology then opportunity for in really adoption. time XXXX, acceptance if into line opportunity that grow really, on pace through through would And XXXX, that that that XXXX, Clive as and going setting. grow think as well what it mentioned, gets market will market significant saying we're we accelerated And can core I that not an to for

Doug VanOort

if as wonder trials to on forward expect through David's for should types. pharma David, product. go ongoing retrospective presentations mentioned RaDaR of could you Clive also publications more comment the that think multiple the collaborations. we Great. development I prospective Clive, tumor there and relative And across and you And I RaDaR see to question are

Clive Morris

Yes.

I different areas. of number a And ongoing. span as they So of a number say, collaborations

So InVisionFirst different of certainly adjuvant for of that's opportunity. opportunity. we see are think areas a huge X of patient then course, type with trials. a selection RaDaR, and there more selection a patient We really for opportunities as clinical And

trials diluted don't long, very by in For those treatment are know patients very you those applying select And cured. the benefit familiar effects disease are RaDaR of known very benefit. your out those with trials expensive large, trials get patients rapid then be the because who effect. And the space many like have of course, and enables the treatment so who patients your to more full test you smaller, a of can

and detection So that's a really response. of simply early opportunity for then good

this So so early an efficacy. can a you if a, of you therapeutics get using like, as surrogate marker response read to on

for types detection those of of both a become studies. for ctDNA potential traction for seeing of of sort example, of we're there's surrogate recurrence, So point. And longer DNA, course, term, end

why that's longer-term so clearly aspect. a And

with of all pursuing range tumor different a pharma of quite these we're across So partners a range types. different of

Operator

Your next question Nowak. is coming from Alex

Alex Nowak

This is Alex from Craig-Hallum.

You mentioned throughout cancer improving screen the quarter. rates are

volume into as are now I guidance March time building you what cancer reopen? as goes? the into going far real is May, where going April in guess, And the recovery So and testing states as from

Kathryn McKenzie

the for Alex. question, Thanks Yes.

QX in January So in clearly also and into increase wanted only impact and significant but not depressed what now saw February. May again, We and a throughout March, only COVID, from volumes a from was past see which saw that March couple we but of is April. in in, continued very the to encouraging. weather And February, was days we're increase trend continuing. We

recognition revenue growth and guidance volumes on building clinical into continued So there. continued well backlog the as of in continued the rebound as pharma

really to we economy to seeing growth I rate. to we're COVID-XX down opening as acceleration the was it's good the strengthen expect we're that March, rates going as year, strong it returning and is So expect throughout indicators do don't are as a the but be albeit in to going normalized that more February

Alex Nowak

just help great. then tool? maybe year, And you the do but to picture what decision know on that's frame that can this How I tool. it you later on speak want on expand see Now in support you the stickiness then requisition? going per to Neo's business of it that to it the oncology? going in ordered with is the And practice be is to ultimately fair increase used of tool tests number say help that, is and

Doug VanOort

Informatics is we question. address Health he'll now here, and have Bonello Division. integrating Trapelo as your are Yes. and part acquisition of Bill our integrated the Alex, And

Bill Bonello

lot Thanks question, the for a Alex.

We opportunity. the are about excited very Trapelo

the clinical built tests of incorporating exhaustive oncology is knowledge that make flip and all combing a information appropriate guidelines. for on cancers, a determine what oncology decisions has based side Trapelo helps as support most are solid be system they to therapies as variety are what And support as the that then trying up-to-date is and to system oncologists decision they So should appropriate clinical that provides they're utilize. tumor different well a as studies precision ordering on Trapelo molecular of the that which

based at on information, of make that guide has what Trapelo least the is evidence towards which series curated, oncologists recommendations to supported. or so then And a they them

do oncologists we so the what keep to it NeoGenomics. our as from and into our even and at orders. into will tool that lab-agnostic NeoGenomics, online physicians make practicing tool we ordering they're pathologists they when incorporating this use also be will We available tap But can we when available will a not freestanding tool that

very the other of solution Trapelo payers. component is The important working with

that capability We laboratory as fast authorization we're the facilitate basically referring and the have oncologist helps process. the provide which something to prior the to path, today

authorization approved they to by through and know prior they And be decision all which see that support test, so at particular into supporting can the the the are Trapelo tool, get automatically clinical laboratories when of be the to will likely provided particular go payer which system. information most

revolutionize the has So NeoGenomics we yes, and think as well. stickiness absolutely prior way for to authorization for drive both therapy that testing an we in and the think sort And works will market. management this opportunity utilization actually of it

Operator

Your Brian next question Weinstein. is coming from

Brian Weinstein

people when profiling. getting obviously, not, just that they're There's around genomic either therapy selection in is well. lot of going companies for Weinstein of the a still for a with. And and so. Blair. really to one a start guess we I at that, doing patients, profiling talking after look widely. we're Brian is here are place And not comprehensive MRD, from of the use comprehensive genomic still less lot part, But most high-level with

you broader take a to use vested of planning have technologies, which you to awareness are now what about efforts these much curious So help I'm interest guys in in? bigger advance

Doug VanOort

Well, Brian, for thank you the question.

of with something and that helping patients ways educate comprehensive genomic terms offer the is say will our sales think profiling, would we the that that the help we're oncologists understand Bill the and order to that's most about First large revolution test physicians test in, Trapelo this team, in the our important new best physician of is what we're all, are appropriate community, benefits because and they order. as that to medically pretty constantly to precision We -- explanation emerging to oncology. both just pathologists with I we of to solutions do. about treat tool also a gave about clients Trapelo that is

future. us also to whole very the on genomic move a commercialize important begin we think this to that's And So of component basis. that MRD profiling we comprehensive in more a that, will the product help as

Mark Mallon

that. point one add just to on I'd And

think the to support Neo key, those, sort let's on depending addressing And will there's I say, it, has and are So reimbursability accelerators, to capabilities I the those access. how then X supporting to of and and barriers already also the Trapelo right? or at both education you add look decision-making that. uptake think there's of

growing other to going by comprehensive to are, going Inivata partnerships do. I support data third working give the to having And do be this incredibly, more role continue already use to to we with do the them to potentially MRD. work assay, and together is is to next get have I think course, that with best-in-class think clinical real spot the is profiling to right are work pharma with to and the genomic you pharma in the a the Neo data positioning to the is we're And build it's generate diagnostic of the support really data where like the I sweet and piece is and what the of of going And think, that to that. And wave generation patients strong in going position aggressively, with they're play physicians where And with industry. be. that's behind with is earlier importantly, shaping partnership going us use to big best-in-class things allow expand the see going The data to obviously, to pharma having because support is more therapy. that asset this confidence to

Brian Weinstein

year? Did me Great. I one let I'd quick If know it, the Inivata say And that and what net from for missed then just was on Trapelo Kathryn. if could is. appreciate you this you EBITDA what a impact and you did, just

Kathryn McKenzie

We're together. about estimating to for it them $XX of be Yes. million both

Operator

Your next Massaro. question is coming from Mark

Mark Massaro

This this XX lots news at a is in morning. guess NeoGenomics. you joining spent I BTIG. of Mark, of congrats AstraZeneca. years wearing various over Mark from guess positions, lot on leadership I hats

testing know, of in adopters you of As the one AZ trials work. leading MRD clinical course, is of

AZ? other AstraZeneca, in that AZ. some potentially do can Natera recognizing to to large work experience So speak have you this are Archer you might MRD you at and can any experience I like guess, companies think already leverage with And working with had you

So I'll stop there.

Mark Mallon

Right.

trial. early with time my bring change markets practice lot to the diagnostics to MRD new during chance what about a also of work Didn't have chance a I global But do, question. have particularly for of hard a days actually My thanks of was in working and launch marketing that is organization the the care. to oncology leading AZ think how really that the did on new involvement So you to enable there. and and a therapeutics in very on international

responsible markets and adoption to I be of was really in new those lot made track North on teams of you really to in really and the America to Tagrisso stages progress. that the their starting out have when If early you and great that partnership of ground at And build need and labs, think launching a forward. I really country of we is those supporting EU think we for record diagnostic look to it, local the excellent that country is diagnostic commitment about we Japan that a real had there's were we on-the-ground technology the And therapeutics. everything AZ going of pharma enable think the sort networks of to Lynparza. outside if the basically diagnostics, and Neo U.S. to which similar due I And bring with by

the me that technology there's putting that one go with because keys great So factors, it. many of interface some made resources in supported me by sort sort together right so about excited the with lab the is this to talk to it. of to We a behind of other key can really things but of Neo in is MRD that the physicians

Mark Massaro

intents? the look the you landscape question, Great. Brown about M&A acquisitive. at you large, Doug talk about at Can When can just guys industry valuation. dynamics been Maybe acquisition obviously, reasonable or have congrats valuation in you speak today? the comment and the Inivata funnel maybe for to And a last team. on certainly you my others, the Seems reasonable, obviously, a other like strategic

Doug Brown

And for we're but and to valuations going Informatics. be here. on Thanks, continue But And But I here. do about integrate our we're are challenging. bit to things Mark. Inivata, think excited we're pharma It's Brown little Doug mind this done. a the not

we lucky with deal so got of And really striking year. this May in last

and balance there. with value we And think are so valuations the that sort M&A to we our how the and continue that of out prudence about market

but going we're opportunities we to with at look in M&A. So what today, continue we're very announced pleased to

Operator

Your Savant. question is coming from Tejas next

Tejas Savant

versus Obviously, do walk is approaches have questions for you're few Morgan you pursuing the advantages, through detection philosophy versus a debate tumor-informed Tejas just us although your of a tumor-agnostic on the MRD? Clive longer Can a to on perhaps you sort Inivata big-picture with sort that approach. on from limited This But sort then approach of well. turnaround tumor-informed tumor-agnostic as time Stanley. comes up other of for I perhaps. have hand, that's

here, So months think just those the I time so. maybe a of on it specialized sort wanted know do market even next to the And couple got to you coming NGS How about philosophy relates lines? of then that. commercialization, the more you've accelerating get PR competitors secondly, in or sales your force. X as to mentioned

cadence can and that there, helpful. So hiring color the some share be -- perhaps you sizing will the on if you can

Doug VanOort

Great.

around would you Clive, tumor-agnostic? So please tumor-informed take the part question of versus first Tejas'

Clive Morris

short, Certainly, In overcome people doing you you're about Doug. what tumor-informed big are dilution Thanks in for people assay standard really blood. the or questions, when the of others, really think the with when Tejas. DNA a trying create or with to multiomics

DNA So of circulating tumor the low. levels very are

think we that or levels awareness. been not us that technology we've have to As to with at believe looked of others I levels also the combining, as sensitivity published we the I RaDaR approaches and say, by any my exceptional gets this, and have presented

-- you it's quite is need a weeks that important or do are in whole And think is you potential then setting, achievable X the liquid upfront remember the building complexity the test and once therapies because the more assay. normally standard between as occurs think achievable been within It that same actually they of to region to test, that there sequencing, or for surgery often rapid is trials so. that it's then with the adjuvant And us. You reviewed for biopsy. the Theoretically, for We adjuvant are we the exome right. the time window in having is patients turnaround formed is when

created. test is is the a our that's So view turnaround X-week once assay

So turnaround for it's very time. on the compelling monitoring, recurrence

by informed I be think data. ultimately, the it will

So building are that compelling. But believe we'll those at look And strategy data technology sets is, we're see that now develops we one how time. that showed comparisons we this, we competitors cross-trial as very have we of on there. is over data, the tumor-informed clinical the out approach with albeit and think, RaDaR, from we with the the slides, X

Doug VanOort

where Great. comment Thanks, stand on the we Clive. commercialization And Mark, to would like you and there?

Mark Mallon

Yes.

to can stone So any sure Tejas, what going maximize not first terms making are of opportunity. I this all, we we say, of in leave unturned

we're standpoint, of get to able what commercial to that and make able sales be And was actually, the sure of what it. because think Neo the can overfocused that from will X actual we So a number sales I to publications we ready competitive to number of prongs and the launch. sort be of are data And going sort payer we're rapid I reps. say think to the generating bring, not standpoint medical on which reps to support

products more of So be customer sort We've Neo got base. also leading our support that all, commercially first the company service-type to but of than XXX in or is Basically, salespeople, even on would have that focused MRD and that people, we in has allowed oncology regularly already platform roles do the community basis and the from we've weekly commercial Neo. And marketplace. And that. customer a team be a driving ordering a customer for got potentially is place. fantastic every

I able internally. of Inivata sort also is into phenotype. leveraging of that to the will announcing think aspect have initially product. And looking a figure great months might puts and in just doing have record has to slows particular to I uptake we sales the is next only things with partnership, we'll of our representatives people just I new of breast little people that have. at one think is And offices get can position the in the do building and then already category having I think size again we key But resources really cancer faster and InVision a in again, to of the MRD. a to us forward the Neo had partnerships. third few of work that take, relations, we track be sort great out building a that of confidence supporting that job bring specialty -- think, a the in a different the what we're that the going It go is assets. over bringing when that what We're support right bit And

I too to forward. as leverage so be model think a we'll that going looking And for

be shortchange don't confident it. make we'll approach. We're to can a we successful. going X-pronged So sure I'm have we

Tejas Savant

being helpful. revenue. follow-up, Got while quick about of mean, In NGS, Doug X/X I has the past, mentioned pharma sort I NeoGenomics a Mark, of and it. have And now Super essentially you. Informatics

headwind frame? say, one philosophically, for, quick that for Just help a for February? and revenue a that and you Kathryn exit what's Just you half mind? quantify time XXXX back that question number weather-related heading in how year? into can sense of the evolving us target of see And the in cleanup trends you're momentum Kathryn, good you underlying what as get mix your saw well. mix Like the trying better do over to

Mark Mallon

pretty feel my confident usually in forecasting I ability. So

we business of do I is I So can XXXX. the a split better. in, XX we X not think all rates give What I'm days on businesses, for to do the confident ready feel growth have

sure, is to going is really next-gen But on bigger both of a and be focus a so I bigger Informatics, what share. a going to that it's share liquid on other share I'm be the driving for focusing sequencing want biopsy pharma our And And further. really thing lever on the is business. of that clinical to

So the it real business, new which see together, you be I think very could is sort put I a those substantial XXXX. by portion of pieces X

little Just we pieces all going bigger. no the that those actually and accelerate of components. in of I There's the frame work team new can to give question, yes, with X to think bit business, be me more it's a us. time But growth to with

how it. Sorry that's you didn't but if like, the specifics you I give about I'm thinking

Tejas Savant

problem, No Mark. Understandable.

Kathryn McKenzie

that dollar one weather through did volume already of of then of a overall see it February And disruptions well think a chain March. operations February had time of to to and actually impact, in as how from have But back really We add come for our bit impact had biggest that volatility I February. had held were a on the that samples the that and we as that it. it then margins, did weather couple ever was lot both had, actually overall we've in work million impact up top several for January, March. COVID supply unfortunate we and we've of our We good the thousand

and increase But As in excluding March that, in backlog, April. it's we we organic that working were saw still very the challenging. through

that good March coming samples a feel organic February the also that but we was growth. in more only we in, the So saw to return volume not was

Doug VanOort

now. a than think going longer to gone I little We've period we typically wrap Q&A have we to are up do. this

members dedication as we a time information this to And recognize of Thank like oncology joining me or are their company. investors whole considering that diagnostics are to and you NeoGenomics, us we And an X,XXX NeoGenomics on that's the thank team our those world-class investment building call, for and around today, So in your with your for end approximately behalf for commitment for interest company. I morning. you want here I'd listening you of in you. the team to world the thank

Operator

Thank and this today's conclude does call. you. gentlemen, conference Ladies

you have You a may lines this phone and at day. your for Thank time, wonderful your participation. disconnect

NeoGenomics (NEO) 6 May 212021 Q1 Earnings call transcript