Seeking Alpha

MissionIR's  Instablog

MissionIR
Send Message
We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices. It is our unwavering commitment to connect the investment community with companies that have great potential and a strong dedication to... More
My company:
MissionIR
My blog:
MissionIR Blog
  • NeoGenomics, Inc. (NEO) Cancer Genetics Testing Services And A Tech-Only Model Proving To Be Powerful Revenue Engine 1 comment
    Oct 17, 2013 5:35 PM | about stocks: NEO

    NeoGenomics has made a name for itself in anatomic pathology and the oncology space with their advanced genetics lab capabilities that support diagnosis, prognosis, and therapy analytics in hematologic and solid tumors. NeoGenomics also provides a wide range of telepathology solutions driven by their platform-agnostic cloud-based web laboratory reporting system APvX and has earned a strong reputation for tight customer support on their comprehensive LIS/EMR integration (laboratory information system electronic medical records), delivering direct support from real pros who can not only help customers navigate the complex integration, but doing so along strict industry guidelines with detailed scoping and HL7 data formatting (the leading standard in healthcare informatics interoperability).

    In this rapidly changing and extremely dynamic operating space that is not only constantly marked by consolidation, but which is also the fastest growing segment of the laboratory industry, NEO has developed an extremely spry, tech-only services platform that gives pathologists a broad spectrum of in points to the diagnostic process. Testing in this area has two primary components, the ordering physician who is the field professional and a technical component that handles empirical testing procedures like test-specific sample prep and the resultant data generation/analytics.

    The company's light-weight formula packs a heavy punch and NEO has built a nice revenue model here billing professionals for the technical component work via a lengthy menu of testing technologies that includes their own flow cytometry system, NeoFLOW™, in addition to a full complement of other workflows for Fluorescence In-Situ Hybridization, Immunohistochemistry, and In-Situ Hybridization (FISH/IHC/ISH). Moreover, this tech-only service envelope they've put together creates ideal strategic partnership opportunities and NEO has wasted no time gaining a huge audience to exploit those opportunities via their quite extensive online educational offerings that range from on-demand training and in-person instruction, to webinars and other materials - all made free to the clientele.

    A fully CAP and CLIA Certified Reference Laboratory, NeoGenomics Laboratories offers testing services that span the gamut on hematology and solid tumors, including a rich Cytogenetics services package (identifies disease-relevant abnormal chromosomes; like a wide angle view) that includes standard G-banding for metaphase analysis as well as certain proprietary wet lab processes that yield a better resolution and higher fidelity karyotyping (chromosomal set identification). The company's Flow Cytometry service employs full 10-color flow cytometry (cell surface marker analysis; more like a closer, top-down view), resulting in numerous benefits, from precision characterization of cell populations and better catching of those low-frequency abnormalities, to more rigorous and thorough use of the specimen itself - even the data generation, analysis, and reporting loop is shorter.

    NeoGenomics also does FISH genetics, or molecular cytogenetics (like a close-up view), a fluorescent tagging method using DNA probes (single strands with target sequence) that help identify the physical location of a gene, in addition to the widely used ISH, or antibody-driven protein localization, which uses antigens to map abnormal cells. To top it off the company really doubles down on their commitment to providing clients with the most comprehensive suite of diagnostic, predictive, and prognostic testing tools available, offering a complete Molecular Genetics framework that includes the entire spectrum of testing technologies, enhancements, and clinical trial/contract research services at NEO's disposal (including gold-standard Sanger sequencing, quantitative PCR and SNP microarray), tapping into the most comprehensive bundle of tumor profiles and individual biomarkers available. Molecular genetic testing (like zooming in on a close-up view) has quickly evolved to become the precision tool for DNA/RNA analysis, and NEO is confident that they can dominate in this highly targeted application arena.

    The company has grown their portfolio to over 70 tests and continues making big strides in both cost and efficacy, leveraging reflex panels and testing profiles with great success. The multi-method test panels the company has developed, known as NeoTYPE™ Cancer Profiles (for hematology and solid tumor), are custom targeted to specific tumor types and represent a rapid-fire answer for oncologist/pathologist clients that are looking for a realistically practical solution for putting handles on a cancer's biology and really doing some good for the patient care-wise.

    The solidity of the company's structure and revenue model owes a great deal to the management team's experience in the large-cap lab space and things are going so well at the company that they had to upwardly revise their Q3 revenue guidance recently (Sep 26) by about 4%, pegging the $16.6M to $16.90M range, with one to two cents EPS (up from $0.00 to $0.01 per share). September's growth rate continued a trend of acceleration for NEO on the back of broad-based initiatives taken during the last 18 months panning out exceptionally well for the company, with July and August seeing strong year-over-year revenue growth, owing in large part to improved sales force productivity and a spate of new product launches. NeoGenomics has slated this Oct 23 for their Q3 earnings release, with a web-cast and conference call set for that Wednesday morning, 11:00 AM EDT (877-407-8035 for domestic callers and 201-689-8035 for international, callers asked to join at least five minutes prior to the call and ask for Conference ID Number 10000554).

    The company has a big bag of powerful testing tools and a distributed architecture that touches PC, Mac, and mobile. They are riding the crest of a wave created by the transformative power of molecular diagnostics in the lab services industry as a whole and NEO shareholders stand poised to reap the rewards as physicians continue to take up this toolset in order to make better disease diagnosis and therapeutic decisions for their patients.

    More info on NeoGenomics is available at NeoGenomics.com

    MissionIR provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.missionir.com

    Stocks: NEO
Back To MissionIR's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Jljones21
    , contributor
    Comment (1) | Send Message
     
    A "realistically practical solution for putting handles on a cancer's biology" makes no sense at all. I guess this what happens when a company doesn't spend enough on their PR firm.
    18 Oct 2013, 06:42 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.