NeoGenomics (NEO) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic focus and market positioning

• Maintains a pure play oncology focus, emphasizing innovation and service in community oncology, where 80% of patients are treated.

• Portfolio has evolved from diagnosis to therapy selection and MRD, leveraging a leading position in hematology.

• Simplicity and focus on top priorities in R&D, commercial infrastructure, and lab innovation have unlocked value.

• Breadth of portfolio (nearly 500 tests) enables standardization for community practices, supporting diagnosis, therapy selection, and MRD.

• High Net Promoter Score of 78 reflects strong customer experience in the community setting.

Growth drivers and financial performance

• NGS-based testing revenue is growing at 26%, now representing about one-third of clinical revenue.

• Volume growth for larger NGS panels exceeds 20%, with additional growth from revenue cycle management (RCM) initiatives.

• RCM growth is driven by mix shift to higher-value tests, contractual wins, policy changes, and improved collections.

• New billing system (XiFin) implemented in Q3 2026 to enhance collections and efficiency.

• Goal remains to be free cash flow positive for the full year, with cash flow impacted by timing and operational factors.

Product innovation and competitive differentiation

• PanTracer family (tissue, liquid, Pro) offers a comprehensive, workflow-based solution for therapy selection, adapting to guidelines and physician needs.

• PanTracer LBx, now with Medicare coverage, is expected to become a substantial growth contributor by 2027–2028.

• RaDaR ST for MRD is highly competitive, with low detection limits and strong peer-reviewed data.

• Recent IO coverage expands addressable MRD market by ~$4 billion and enables pan-cancer positioning.

• Commercial organization optimized with distinct sales teams for pathology and oncology, supporting portfolio-driven growth.