NEO Neogenomics

Doug VanOort Chairman
Mark Mallon CEO
Kathryn McKenzie CFO
George Cardoza President, Pharma Services Division
Bill Bonello President, Informatics Division
Doug Brown Chief Strategy and Corporate Development Officer
Clive Morris CEO, Inivata
David Westenberg Guggenheim
Brian Weinstein William Blair
Alex Nowak Craig-Hallum Capital Group
Mark Massaro BTIG
Tejas Savant Morgan Stanley
Mike Matson Needham & Company
Matthew Sykes Goldman Sachs
Derik De Bruin Bank of America
Andrew Cooper Raymond James
Call transcript
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Good morning, ladies and gentlemen, and welcome to the NeoGenomics Second Quarter 2021 Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, CEO, Mark Mallon. Sir, the floor is yours.

Mark Mallon

Thanks Kait and good morning, everyone. I'd like to welcome everyone to NeoGenomics' 2021 Second Quarter Conference Call.

Operations; from Finance Myers and Brown, Officer; Officer our morning McKenzie, are Chief our this of of Chief President Corporate our George Lab Chief me Strategy our Division; Development headquarters Fort Kathryn Operating our and Joining Informatics Bonello, Officer. Doug Bill Cardoza, President

Clive of the the division Dr. and Services call the United Joining is Pharma is Morris. phone on of California is phone from our from via Dr. Kingdom President Waller President via Inivata

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

Doug VanOort

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

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

Mark Mallon

Thanks Doug.

quarter quarter. $XXX XX% than these areas XXX growth over the a announce our Clinical of in quarter. really year-over-year two greater revenues strong are of growth a contributors results depressed our to highlighted pleased our significantly annual by account for for quarter from XX% QX experience now this COVID-XX business from year grew represented versus PCR three All no one, So a cancer the noticeable divisions revenue. third In strong growth. to million pharma a And revenue million clinical sequentially basis, I'm that clinical clinical included services especially a strategic total growth revenue of pleased tests number increased company sequential grew of importantly, over core services areas our NGS and performed quarter core of were the X% recovery And testing ago. note to revenue. we clinical the and X% QX informatics our and one this our we contribution in record On testing volume XXX,XXX . with year.

back quarter year. the volume and the to of recovery in continued are impact strong into a continued few may volumes volume QX encouraging uptake market is related While we that factors in have the monitoring half

anticipated that of in team the remains We in have three Delta our seen much quarter can to have full that by to certain COVID-XX but variant. that recent the would to driven We believe access sales territories. attributed cases by spike their be this customers be

in going not quarter of slower critical even evidence a that is under will reopening benefit key believe two continue be rate business sequential still continues are country. cancers offices parts for as strong to patients at in in many We if our growth appointments that shows our data volume the screening market clinical Additionally, in of diagnosed. some

as and from up during backlog percentage that our gives a migrate revenue a of noting continues as value our million up us basis annually the services up our to with to quarter, will chain million the quarter during shine revenues in growth services Neo three pharma $XX years the awards development runway million putting in XX%. we $XXX bookings million strong business worth opportunities. and winning contract two exiting pharma record contract we few XXXX that their exit the larger customers services $XXX to $XX be important signed These Demand over backlog was have than our million are to segment demonstrate record This also also of a pharma larger the competence a It's of pharma most projects biopharma in business approaching our $XX robust confidence phase ago. growth just continued more new of awarding phase drug team. some customers as Our year-over-year of quarter.

clients product trials and improves Our make demand. clinical to commercial fastest of continue which capabilities, is three support provides Informatics analytics the team be identify these with to our strong divisions progress. for high the to patients growing and launches informatics the operating continues ability to of biopharma companies in

still in posted later Bonello While you'll record revenues in and two informatics prepared business again our division this quarter relatively from more hear President Bill small, remarks.

the closed acquisitions. quarter, also During important team our on successfully two

early Trapelo very to still we and already and is acquisition now support our NeoGenomics. multiple April into in as of strategy innovation overall to Health growth excited bringing And are of subsidiary community the Trapelo of division. oncology the market. see in We Inivata closed addition days, drive informatics opportunities fully our the can integrated a about while Health

call. with leverage disease informatics plan position June, in RaDaR strategic advantage Trapelo well pronged are for to the in or about our our success. recurrent in the a later and You'll activities NeoGenomics multi closed of and hear strategy assay the Inivata updates integration commercializing We underway. more in residual

submission track we the of we'll is Since review acquisition of market of -- future be ensuring for of remain areas. we the and in assuming the middle of samples submission As Inivata accelerated clinical have testing year. of types launch period, next to the in support cohorts our able progress a priority multiple multiple the reviewed to retrospective we've Year into to a RaDaR launch the tumor acquired we've typical turn New team plans the initial and and first rapid in discussed, on around submission the and

support biopharma to for RaDaR. is priority Another gain

engaged recognition of and teams is fully Inivata growing been the team of services specificity a companies now of pharma of and pulling biopharma in a There's RaDaR leading the portfolio by sensitivity the in opportunities. large assay. supporting pharma Our through clear

an to residual with treating revenue companies expect the in of setting setting, early initial XXX as cancer particularly We with MRD stage of and will for generate building like therapies disease by are Today, can places in to minimal patients be our example nearly new recurrent of evidence drug approximately important be how XX treatment. the to base aid for the quick cured and biopharma monitoring. with transform role RaDaR. RaDaR leverage course strong relationships an their adjuvant successes. in are could of one in development, adjuvant MRD opportunity play percentage it specifically testing development used Studies in

recently test can However, cancer. not more and who a reduce treatment, have part clinical clinical it's earlier the six to liquid By from along managers helping expertise more. help team evaluating average a tumor DNA circulating believe analytic readouts oncology that RaDaR published cancer success other important We built enough of the reduce on of and We've elite breast healthy be utilizing Agendia sizes, focus This of make teams of which class best utilize unnecessary make. responses have other year, enrollment patient to who medicine next in million tasked the adoption. as effective uptake. RaDaR testing is it enrollment launch. consequence, size on a specialists the biopsy multiple sales market. study focused opportunities. a base that the patients sensitivity allele to other X.XXX% per team in breast to we focused And know view important believe our will RaDaR place commercial assays cost an do of as team of these oncology companies into and facilitate we're grain relationships well. on additional at this the trial cost. sales other have residual sensitivity these in sense adjuvant sites XX patients generation variant or a are who recognizing sales concentration drive trial difficult large numbers way includes We ahead allows of of the avoid like RaDaR Agendia upon may such RaDaR will out selling over to be U.S. with planned and reasonable We years an the clinical precision received physicians various trial co-commercialize on quality calling of not parts focused pharma biopharma driving clients the We an improve our been we with or sequencing more force adoption inquiries frequency level launch, an already way. and for RaDaR partnership Also well and XX% street struck differentiator. as will key be believe are actively from and cancers reach our at leading This of potential true low at be fundamentally We arrangement cancer similar the cancer with company partners XX breast assets differentiation to a growing to calls will

approach on progress acquisitions. can for that XXX support by and we market the X team the as additional I'm decision of minimal we impressed efforts in multiplier my I've evidence picture disease is a recent is our on clinical residual software our Finally, the MRD platform very as published NeoGenomics be RaDaR sales RaDaR early clinical technological our with working wins opportunities and job. and adopted days and believe for biopharma the of in about perspective, are in Fast factors rapidly treatment. disease first generation, strengths our multi perform and channel be testing possible the quick the proud Neo selling will CEO evidence my excited make success a been to reimbursement. success the quarter big are leader to comprehensive from two several customers, with targeted From of first quarter Overall each.

broad how just course to is providers, of I see the oncology a and ecosystem, provides constituents have pharmas, and portfolio proposition NeoGenomics it's I in, comprehensive value First, our of services of oncology the patients. payers, how truly platform dug all is,

Our assays for solutions multi provide time portfolio that of of of comprised biomarkers hundreds modality specific market is answers. sensitive

trials research pathologists, themes. pharma oncologists, scientists For and

bill Our great for third that information of is payers. to us customers. right the the provide direct value the and broad that differentiates patients right real party customized of and In the clinical at providers menu price is in us. menu our time biopharma panels our for driver to for allow also at It targeted base right growth

year, As we franchises. have strengths these value translated continues a the are test and patients to three key related gathering million are leadership day. gathering or into informatics of Critically, half capabilities only the we per every nearly data snowball in

And strong in presentations say especially where opportunities a an hundreds testing translated We NeoGenomics. and U.S. obvious franchises of that more many leading adoption to all future. decisions navigate visited the both and we the our Scores perspective. are had of the a first more. with and paradigm RaDaR annually. in outside position of to a And today cost our I clear while consistent the fellow to both modalities hematologic in our than see opportunity lab I care clinical lung into diagnosis look are. of oncology customer of test this so as can cancer see offerings. our in pleasure the breast benefit much millions Net we cancer for my for rate. much And them commercialization and patients that monitoring. employees We technology can to leading culture, is levels that dedication also segments truly are retention the of is both globalize real the our have is transform more teammates from our for leader I at of I are both meeting has assay now We and have help customers must further mentality the broad These leader U.S. are times need feeling been know run our the and impressed turnaround in I've high and do organization This industry equally dedicated oncology patient we facilities by drive reflected as of of of software of strong I've tests strong cancers, in platforms as XXX,XXX appropriate the in help extremely recurrence patients we many Promoter believe market,

front We of organic biopharma with and that that further on. capacity the discussions in have no these right scale. our corporate slowing we growth we of down have ongoing development world intention Along globally. to us, around have multiple opportunities growth And companies with support facilities them have ample have ability regarding we various to also opportunities inorganic

world. laboratories in our capitalized puts changing in strategically believe and competitive in mid and it making well deal markets very and are rate look the together, most well-positioned oncology. diversified well a which historical growth keep are accelerate all as us teens We as I opportunity efficiencies. And attractive to and to front to implement fill player I constantly with put we further position us, highly I continue in one see for of When the margins top well the well-positioned, will of all enhance our the up our as end a over pace we time very marketplace line

now of of to to discuss of other I'll I details optimistic the NeoGenomics, quarter the X of some You the very of call McKenzie not can more tell I future part to be company. be and results. turn our over financial Kathryn could am excited

Kathryn McKenzie

you Thank Mark.

grew second one clinical quarter strong a from to during wave the volume ago. year-over-year, the Second the year during the quarter pandemic of driven back division revenue in initial compared volumes bounce XX% by depressed clinical

had quarter Growing new backlog. the XXXX its Pharma per the reminder, and revenue in million to a the compared COVID-XX one, same with test testing in and two year. quarter rapid million quarter wind capabilities we testing XXX trajectory. last in two to two PCR continuing the services year-over-year. COVID-XX was we a growth compared full As be made period for and XX our exiting in X in decision strong year continues in over revenue very XX% contribution million XXXX. signed grew Demand record Clinical to quarter from of down of $XXX XXX division to $XXX quarter and we no booking,

margins amortization of XX.X% assets in intangible total develop to of included acquisition. technology two through Our Inivata gross acquired quarter related the

revenue of our quarters, increased amortization to profit gross consistent increase. for largely by able revenue growth with million a staffing Gross million volumes driven that growth. on acquired these higher year quarter over volume margins can cost only efficiencies were sequentially, assets XX%. as XX incremental on our services X clinical should approaching a XX.X% pharma profit more and ago, intangible of in to levels, gross revenue back XX be provide that gross to we margins normalized sample gross our more the improve predictable profit two, fixed and Excluding a more million to we margins COGS of on leverage division, Compared infrastructure. million previously XX series grow. confidence see increased in These increased allowed and we believe improved of levels continue And we achieved on

which service to business, the And and the Inivata levels QX to investment prior are our carrying continued and minority high previous growth. investment Trapelo options. these experiencing. by the investment commercial income the primarily higher increased related costs This million labor prior amount acquisitions and contributions see chain rest core constraints same acquisition costs, capacity to onetime equity we've recent other of Operating in acquisition, of fair in gain Adjusted in immediately to improvement minority and we affect a the value certain payroll related of other and expenses demand million Concurrent challenges XX However, completion on support Inivata $XX Trapelo, from continuing gain company's the is related exceeded cancer the personnel from and of with country protest. of reflects expense and expense combined $XX of its the Inivata to costs, temporary Inivata. commercial represents to the Inivata within recorded of by the the that X.X value increased supply by constraint expenses. offset purchase recent of acquisition acquisitions million, contributions higher our cost interest EBITDA with health and revenues, year-over-year additional in million the in driven

excludes marketable in balance construction securities the cash in state of additional $XXX Turning art designated new We two restricted cash in X of global million Fort Florida. Myers, which with sheet. to and and our headquarters an the for quarter exited laboratory million

in and purchase During exercise the million to XXX Nevada, the to equity raise related we gross remaining our quarter, million strategic acquire of transaction. cash private equity utilized in XXX options on proceeds and a

cash in April. announced also We closed and in utilize XX in the was Trapelo of which acquisition million for March

our now previously call revenue back annual adjusted and on will over strong I maintaining EBITDA We the quarter. are to second guidance turn provided Mark. based

Mark Mallon

Kathryn. Thanks,

dedicate previous the some a update investors business. quarters, call like done on on providing our to we'd progress in of time most our of to areas with As one we've this exciting

course on. Bill? call division this projects discuss have call to asked For he exciting I'll and Bonello now, over the the Bill his I've President of our team informatics Bill to the working been turn

Bill Bonello

pathology. Thanks solutions to start informatics It's from nearly years, science our great support and be growth. we of informatics patient to companies million building The XX services life division Mark. drive data speak towards initiatives. progressing goal informatics a to longer a trials, technology establishing improve two to people grown is about and to commercial $XXX clinical analytics, and our to provide term are we've products business. able our short clinical standing business, and In and of team core nicely and care a In digital

nearly in different in contracted companies. past XX have the we pipeline. Over projects And XX engaged have project XXX over our two years, with we unique

highlight sense that of commercial we just of clinical current give identify global cell potential to with by oncologists two doing. I'd We lung non-small companies, case, a pathologists. support the for identify a launch a well a of research do type leading as gaps better use work we're as analyzing the patterns several one phase few help among both trial projects, information the biomarker largest you to engaged of as sites are for projects our often many testing of this as multiple We like pharmaceutical organizations. cancer to therapy well in tests. and contract In

We cohorts within of mean information the from treating that to hours testing also or approval. shared follow and benefit biomarker identify patient with FDA physicians individuals XX up this therapy might constructed

to implemented we program testing a sponsor patient burden. Finally, financial alleviate

candidates trial, we're have clinical for We be specific treating following where projects might facilitating that physician the up identifying enrollment. and a several other patients with proactively

several projects we gaps commercial testing identified biomarker have also have where other We in support initiatives. to

we pathology is digital Another area where around have engagements image and analysis.

We oncology are companies proprietary order market. this with therapy in acquired annotated very for machine support which some decision excited clinical selection decision focused a perspective learning prior year. testing test to treatment. provide as several on images as comprehensive both supported to company well also in both digital on Health of algorithms. by for other our and tool Trapelo engaged Trapelo Health, any from clinical We're differentiates about precision Trapelo streamline instances own authorization March result and is This support we the

with this must specific payers included own testing cell than And Trapelo Real precision XX% cancer guidelines. for world or patients of biomarker patient just all should risk for to know, mutations, actionable non-small up XX% a for and term seven to tested non-small lab end, for receive biomarkers. to all Nevertheless, mutations. metastatic for common of And that example. laboratory clinically providers in cell we how patients guidance biomarkers lab even identifies they're be most XX% that's four data the are relevant non-small tests receive those candidate biomarkers, include with know which up enabling all the me, excuse preferred The product genetic just designate medicine biomarkers therapy is front a their cancer of and of clinical cell be clinical underscores As agnostic, patients order important lung We long trial. designed work, patients testing and is. patients which just patients networks. one the to less lung for in to that to ordered have be X% have genes and specific cancer know of lung that appropriate a

and also of On individual are and test in oncologists rapid the next identifies those the quality change a be occurs trials guidelines treatment Trapelo for of Also, pretty broad the can at making appropriate clip. end, a guidance up results information. community based patient care. back very cancers therapies the patient may of About to to keep an is it This most and with highest in critical ensuring most range clinical science which other impossible alone on the in XX% guideline. seeing clinical current

times as Sometimes change a over for can a guideline as course of the the year. many specific six cancer

testing is by been the and of PhD collected All recommendations our which for knowledge a base specialists. into treatment has team curated evidence supported own by and proprietary of supported curation both are scientific which

days, While overwhelmingly been provider of medical client organizations, it's response positive. early active payers, discussions has companies. still And number large in a record with are and we electronic

decision We support portion of hope available clinical product the will in testing fourth quarter online order NeoGenomics the process select have and this to also that year. clients of our integrating into to be

Now, the to I Mark some closing remarks. for will over back call turn

Mark Mallon

Thanks, Bill.

ensure Q&A? cancer Inivata from by We service our services, of focused QX company. cancer to information our to in want is by testing business and transforming value to NGS a growth division So ahead creation Dough Trapelo and patients testing. our patients. and I leading the gross to our with cancer and MRD test. us Fully test now revenue. being and of one remain profit for growth will comes believe clinical laser that potentially record working and you RaDaR and confirmed pharma achieved innovations testing the lives acquisition informatics with the we drive have visit drivers grew more take on in a growth strategy of a We We transformative driven shareholders summary, third results volumes XX% of

Doug VanOort

questions. like call for Thanks, to everybody. point, this would open up the we At

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


now first Instructions] Thank is for [Operator question coming Our questions. is you. Ladies today from and Westenberg open gentlemen the at David Guggenheim. floor

line Your is live.

David Westenberg

I had a issue earlier. mute

Okay, perfect.

guidance, we Okay. And detail raising nobody Delta force. patient I what's on ask guess when volumes July, just sales variant people quarter. we Good going knows about but can't nobody's because the with and say they're in, coming the

mean volumes and be overly pointed dynamic and we So back I this if in of here. terms is cadence given the the genuine the patient But year of how don't model half year this of concern to of walk of just and the rest question in for can kind complicated, should since how of that genuine I he the my can't and next. puts with the with can't of takes case the sales question kind and is force through detail, one get I'll case, Delta stop the genuine detail to kind volumes that and

Mark Mallon

David. Thanks, Yes.

before. taken of So causing been what seriously have to these hospitals evidence open number that impact have And are examples across unfortunately closed access I sales that us representative the in is to We've real. a sort offices places pretty have hadn't from is country been that it's to of certainly of the getting access much think had on closing. an

cases. access set the these Texas we're even have like and reduced think in where above records seeing places we're actually previous I records Florida that places for particularly So COVID

on to sales side the has been face, virtually. directly with working So our customers team but positive face both also

in patients. make continuing are about So passionate they area we've difference lot built up for cancer a and capability a to this super of

hard driving the keep So volume. working we're going to to be

guidance have the think is momentum too I we that. causing multiple good the we this country. early what's institutions and happen it quarter. and any to give question than question. The second But occurring, is going long and spike think around you to We can out Did really I I changes in is the answer of know more don't last will say coming how practices in it's really your

David Westenberg

QX want clarification should modeled move there. did we QX the a to maybe I then just and get and cadence down up

Mark Mallon

ahead Kathryn. Go

Kathryn McKenzie


based would So a access, spike QX how this. the it's cases on seeing come Again, to be be good the would would assumption I to on to as in through. at a that definitely what and as I QX softer expect with I that point, COVID in our impact expect will we on get compared unknown but QX this handle what the we're


you. Thank

Our coming from Brian today next question William Blair. at is Weinstein

live. Your line is

Brian Weinstein

little A services about bit side. pharma

there You competitively pharma on to order in of out in that as curious just there. that so two highlighted are to to when But fill that moving you I'm brings think broader more trials into three kind you're things you here. where phase gaps maybe of and you Thank phase the need why about what even bit and much. talked about then, where the means specific some you win, about opportunity there. services winning. win, of effective can terms you be more a be little continue side, on size you deal that you And ways

Mark Mallon

say of one the with ask So when the first companies. to going why part pharma two talk expand on we of win. reasons shift about the I'm upstream And to question word a about And well. we the I'll win as you or can Gene

work phase phase two, last earlier we've over first into three, companies. in the really And some is of we logical company as work continue projects relationships strong years. only multiple to we've want a that's into with with progress having later natural couple of of One, reasons. I the for the success great tremendous are built had phase It's two think, moving where they So all, to states success. that

moving have I later think significant supports we the in capabilities. the capacity thing and other stages that really

learn a revenue you two of can be to secure once way two And want deliver. that. and do As they large, exciting to phase they studies have very they quarters. the that It's the shown a I can know work acquired phase program, good these studies, us, for for can think the with bigger test to business we've because quite or number organizations

course, studies time the a of little test bit take to those can longer. Now,

to, how have But that because we about So why doing. we're the overall, important are you we're our of Do in we're and to excited see continue this most super going about our winning? watch some XQ goes. to to work represents customers talk really want incremental business it

Kathryn McKenzie

Sure. Thanks, Mark.

shift, capabilities. of is from factors In global the phase terms to one the of one, large two to that phase trials research/phase contributing three, our

Singapore, companies' and our of site now This our solution opening the needs. to pharma Europe and in With global a China. provides

And companion we so that full think we in global ex-U.S. able for oncology terms providing include looking are are our that discussions when ex-U.S. table service to we terrific I board the the for. seek phase it And within therefore, diagnostic identified provide solution. services to holistic clients U.S. and bring we three Does across have Key because is services that that We your win being those address of a to at areas provide question? in the comes and that what

Brian Weinstein

you. it. Yes. I It appreciate Thank does.


Thank you.

coming from Craig-Hallum today at Alex Nowak Capital question Group. next Our is

line Your is live.

Alex Nowak

they're But what to money investments The Great. same more at the making getting And to next last that the spoke under hood? main their had RaDaR the on investments large team get company year? expand the two I'd spending asset a to for a is going some environment now that Good you've to quarter it of there very test ready additional for the Inivata out need base everyone. maybe Can prime get within respective competitors competitive time. morning, time, number the launch then on ready say Neo's assets amounts time of really the clinical you ready.

Mark Mallon


about more how say we're what couple get bit thinking about to would but I'm doing of then like it, Clive talk about a little a ready. specifically words I to me Let

recurrent, they're of give base So low very really I sort looking I a is that what or in can going the and that dimension this to I've first as internally, launching or product to before at on the that's data what seen going in a competition. I think thinking I'm but confident bit thing we that's and very be visual a developing was key technology And new this published from strong we're profile of the good us is recurring perspective when outstanding. of detect better and on to really Clive is ability you're levels, think the little come about been comment at the cancers,

In surprise. large all the long as These companies and terms in and where investments, are customer have as history they of large starting both those making well has companies those. a in investments are of in, having evidence forces Neo and a position oncology initial bases, sales from don't generation conversely. volume, are

XX group, the be. year really an place got to going and for a have team a into over defining profile, so And we're middle resources. half product, now in Clive? remind we're thinking a competing we're that's customer XXXX launch marketplace. to as and we're about there we why have let of have over to the profile service more Clive and an million tests and I'll the a We Absolutely, what words have in base about this. customers, a year. doing million a got We've and of infrastructure sales additional incredible sales experienced us those customer excited about And have over big about starting a of he's we patients point, we've pathologists, how and pause say few people. the have going XXX, maybe next move we'll to a dedicated we

Clive Morris

Mark everything said. that question. endorse for Mark. Yes thanks thanks, And the company, obviously just Yes

that sensitivity and traces very blood undergone specificity for low. We DNA you're already that effectively. talked believe are the a treatment fantastic RaDaR the about of the win has profile Therefore we disease of critical and getting stage to assay. in then launch. generation and clinical early in compelling of We we on is patients assays who've sort sort a detecting microscopic I the aspects, ready you cancer for space. range of different know these think see And believe evidence absolutely working

across exploring tumor a we're that of cohorts clinical range types. of number a we've So

seen leading we're an year. sort initial with archival towards to Mark the longer long As with sort overall, around like cohorts we of and studies see RaDaR submission ongoing evidence can take of then of mix many could the mentioned, the reimbursed building approach while year test middle in course a for of but launch we're increasingly also prospective turn the of may asset different indications more with study looking we access But where which or using of reimbursements sort either practice that a a we be through. but changing for them of term, potential bring next to

interventional, mentioned. those collaborators, And into outcomes obviously with as indeed, cooperative start group the long data we're here. with with getting observational and they we'll term more Mark prospective studies prospective that will with stable. that and building into drive biopharma ultimately within collaborators, So so academic

the sort evolution the this So grow. continue is I clinical market. the of to beginning at we market say believe It'll of overall testing right as of

and tests think, sort of we'll see and sort additional of being I reimbursed. indications

will cancer sure generic cancer today, and multi-x is we colorectal the using. you're LCD there aware coverage As There also is pan more from group others coverage. I'm that look at

that about in then opinion a sort physician I question. development planning do more to evidence as enter thinking expect time process how we're more launch from into in building Mark commensurate of timing successful you there's those launch to education, the over lot mentioned. Mark said leader marketing, the think and through Alongside and detail So course, the key sales indications through into within partaking than the answers the with ads be course hope of and go needs generation, increasing see a that. would to of we

Alex Nowak

Very helpful. you. Thank does. It


you. Thank

question today next at Mark coming Our is from Massaro BTIG.

Your is live. line

Mark Massaro

If for two questions. the it Hey, parter. a guys. can guess. I I How's ask Thanks going?

I companies Bill you're initiatives months I XX then envision leading to wanted in type can so. raising Bill the chance to and your Thank others guess, a digital developing of seeing And pathology, curious some the been algorithm relative AI is how internal remind learning Have differentiated platforms the XX it's test, think ask within increased of had lung last in you first maybe field? and to evaluate relative any you or other the you. you been to the industry? your to money us how The you've long there's several machine Bonello year first and adoption interesting this if some

Mark Mallon

looking Okay, of one lung take me the things is let on at closely. first update been I've envision the

of the year. So for we've seen steady the beginning growth

And so better so that's want of and But do to we we're good. definitely couple taking steps. a

to counted medicine be to in new that in will can people team, team selling one oncology, envision precision on sales addition number XX most is will what both team advanced XX the focus of the the be come growth This that background focusing in managers precision the the a see supporting oncologist. accelerate As representatives to are already These we I've lung. the of the This tests. from product. very clear working do

about enough best the And current are that. patients. be know that. team to patients cancer and in really first really these we're and importantly, a of they to space. eligible job probably our solid approach and envision where medically right with as couple from new do We're to is first patients indicated is envision contracted we can great forward lung line, expedite also focus going Fully which to opportunities of patients of a we're lung with in able we better in LCD going you clear, and positioning XX% patient a for the be biopsy are emphasizing the first in get customer of lung, adding tissue. much that. the reimbursement won't under cancer a it's dedicated really over about And excited really physicians the talks lung who envision resources also These tests for on So go really choice service our tissue to have reflect are But the profile. to a do to to

further stepped and we I effort, tests. even can a make it a up faster resources growing, in really clearer the into messaging, investment is So with what test take growing think

putting a the to part? half the second want year. of we'll So be Bill second big take on the emphasis you

Bill Bonello

projects Mark. Sure. ways. And for if referring with our I doing you're those companies Things most we images in to. easier that many Thanks customers that basic. lot are make be working that would not for would question the in pharma the algorithm in a companies digital fairly say kinds We research. who actually instances, R&D all of of are do we're their the various work the that know to using work

we're that of currently distinction a of any kind other I are be we not assay. like circling, The things we processed those from etc. doing, at that. I be year us, doesn't That But it many slide work future. pharmaceutical have able And within need one be So that companies. help trying of of reasons we in what would would created. point do algorithms tumor they're thing on do of can pathologists training hence else all dozens scope have images make may players that It and of of significantly is mean with detection, that marketplace. calculation, that the what companies some and working what dozens say scope in one many and histology, those not clinical with to as want digital and of to as we're many the than in couldn't we and companies more And anybody evaluation do. try validation in the do enhanced is capabilities resources of from to wouldn't the the to that the a some we of and probably other at we us differentiates

some So hopefully we're of sense gives that at. where you

Mark Mallon

Thank Bill. your Mark. for Thanks, you

Mark Massaro

Yes, that Thank great. you. was


Thank you.

Our coming Stanley. next question Savant Tejas at today from Morgan is

live. is line Your

Tejas Savant

Hey, guys, good morning.

ups I'm Kathryn. So follow for Inivata then quick separate just a a of question and couple

Myers recurrence you And RaDaR approval response mind broader Clive versus of do MRD how modality to the operational an year? just as detection lab on on indications? when heading color your give FDA So different adoption envision versions important cadence then, be expect is on monitoring any secondly, for Inivata the in general? in back into for of the for update fully a of you us Kathryn Fort half you're can And the you OpEx

Mark Mallon

Fort update Myers, lab responsible on So you the an Clive I'm going him if you give got and since Cardoza want to okay. first George that's part our we've for actually have here take to operations, who's

George Cardoza

surgery, of then Yes is its ongoing and potentially RaDaR monitoring assay the the Sure. recurrent for like for disease. detection an both the disease Settling suitable residual back. following completely beauty the

of variants. high highly So a we we're sensitive, create the tracking output a number

XX genomic per earlier many of And and months breast of good that at we which in can lung the known rate and the we with have all landscape detect actually the we've detection not patient those great very there the looking landscape, in cancers the then if the recurrence data mechanisms. than sensitivity majority, conserved. variants even conventional are presented we're show a early if using changes be patients, will So means actually

to the same is we of answer question. short use both test really, them for the can first the So

assay has been In initially, through with built the moving then as a terms and to FDA of with then an future FDA. of the sort view a LDT view LD to

working future. approval for those with we said, pharma, certainly, therapeutics we've key, because were that already already, early designation become in companion drugs diagnostics I device pharma. an FDA access we have and I discussing think are and breakthrough think the the tested I As clearly And FDA with these the that is on, ability think the

we course, are then to regulatory scrutiny, and partnering of diagnostics. of clinical course, want and hopefully testing. to reinforces read further key performing pharma the use ready partners pharma under course, through we're those everything approved, positive, trials be the as companion sure the to run oversight guidelines eventual four then else with then regulatory as then of make we and then those as naturally trials that with clinical out, Ultimately, company of they and and So

the drive continue such they testing So term. to of long will uptake

adoption. approval So term the FDA term for we eventual short the certainly part the clinical and that key long readiness and biopharma a FDA see as

Mark Mallon

team that's admin and day. be move the the to come is Yes. No. laboratory to right will now. And will which soon. buildings, And two one so every very drive building, looking There's the far. easier really it's open the looks fairly Myers corporate excited. I though, The headquarters really that I headquarters, obviously nice Sure. happen think is Fort it And the by beautiful.

of of Obviously, in validations. revalidated the laboratory new We testing validations, the testing time. facility, fourth we're right quarter be to the will a in open, is have now that But certainly we doing be doing new hard in team be equipment in does we working these expectations all take the our and facilities. laboratory which the will the bit tests have

cramped also is for dated, So some very bit fairly the we the in and a to or ability terms that just are streamline facility our our excited. of And workflows us of team capacity is in facility. and Meyers the is, Fort

efficiencies So we're to going very is think excited to time. I allow laboratory they and growth open our get some over into really concept over ability which to scale

excited team about the is So new facility. extremely the

Tejas Savant

Got it. and Kathryn OpEx? on

Mark Mallon

Go need Do to you ahead repeat question. Kathryn. the

Kathryn McKenzie

question the repeat OpEx? you Can Yes. on

Tejas Savant

XQ I just particularly wanted year. views the to back get XQ? your I OpEx mean, into anything half versus the of on noteworthy cadence heading

Kathryn McKenzie

be we could with impacted COVID. no that said in impacts some consistent between third we're But seeing constraints quarter in significant other there's related the quarters. that fourth capacity quarter to what some No, pressure and before,

Tejas Savant

thank you. Perfect,

Mark Mallon

of Thanks the answering sort and of job to want just Kathryn probably clarifying the was going or question do point which of is could to a obvious something maybe thought to of we Kathryn. I'm sort clarify sort resources. OpEx but of out us to at as better that goes to the going of

We've people to experienced sales ready for got which the of of we getting going place add at already Agendia XX XX RaDaR we're launch very experienced sales with partnership people. the As is have very in Neo.

backing lunch actually the got and into PhDs. before XXX talking them service we over these to we're markets medical Neo have highly people year customer team, substantial XXX very up in substantial team, experienced we've with very actively a place and medical doctors selling So

last few I this is new think point test any a point. that put starting so years in a I be, was up launching that lab against starting a And would the as

the it, additional no and great today. that launch. is place going to this in resources about and compete in what's also we're Now, dedicated they're already we and work the But and make the customers have we to need for have resources is mistake market on in place to what experienced calling

and sure make just take wanted of kind highlight I question? Can So clear. the next that to we're


you. Thank

coming Our Company. is at Matson next Mike question today from & Needham

line Your live. is

Mike Matson

on couple timeframe in points and Thanks million mean, I crazy this Hi. guess, XX is XXXX? so. you'll wondering, that have growth If at in my RaDaR. short have taking or a Thanks. That's if XXXX about to the this to just reps I orders. maybe for to X pretty you or mean of something add following just revenue, million number XXX count it you're Yes. realistic not I selling could up questions. assume I the was million made XX adding

Mark Mallon

But the no, add in reimbursement So clear year getting that in all in and the and evidence. it's in focused especially have starting XX. said we to we're activities and be crazy on pharma in RaDaR is we're in on we XX the said what focused we XX. on definitely getting resources in get come to growth XX to material driving sales, so and making into as place sure sales that and we building impact not we've a XX see and we and expect material way, see can

thinking just about way. are you it the think I right So

Mike Matson

great. And on wanted then ask to I Okay, M&A. one

you other You've It deals remarks, that the sounds here prepared in call like still a you're recently. things. done as at couple out looking

specific oriented, you the the more kind tests. thing But of in approach? be scale in do will you of of to looking if or guess, Thanks. for an and deal seem IT you're of done you're just overview deals I that terms is Or you've type deals one main for? breadth? of the kind Would So technology one so

Mark Mallon

to that That's answer to have a Dough please. great question. I'm to going

Doug VanOort

Mike Yes. Thanks for the question.

evolution You're right. been to with I market gone M&A. there's think an mean, I we've how

deals And about couple scale. last technology. about done three were we first are The the have

a as in of major transactions, technology growth a as it continues that driver clinical to for have we it be pharma and more and think be adding channel it about would into as scale informatics When of might then are about we're about here. frankly, side evaluating think we it's we perspective, could opportunities test. adding be there and But the global we probably lot the on scale echoed, also look a We Mark well. from more a


Thank you.

Our next Sykes today is question from coming Sachs. Goldman Matthew at

Your line is live.

Matthew Sykes

Good my morning, thanks taking questions. everybody. for Hey,

me. for two Just

own one, economics agreement you on with expect at ? how my guys into if sort through additional the sales? run in people house going you house Just sales versus the Agendia the look first then but outlined of for color I might RaDaR what of previous Agendia percentage you the through have calls, the versus any you for RaDaR expectations in to know this commercialization is in XX volume a do mentioned think but XX your Agendia And of or volume apologies in terms market? their how

Mark Mallon

communicated don't the of we of as the So details confidential that Agendia. I We information. see the haven't with economics believe agreement

I Clive think that's I missed if first and jumped anything thing the in.

experienced very a again The What I is volumes think particularly capabilities, driving successful blue tremendous they it to second And Agendia. premature say of with terms is in I mammoprint significant Agendia and in try point the They're of generation. through and market. products in their growth clearly volume estimate would evidence be blueprint. going breast organization have to would cancer

remarks, the which an fantastic these have treated or curatively you year confirm mentioned, think, together We we monitoring. your be they're a And to super with patients going in I do, transition do as patients cancer exciting is to that going and a leading to recurrence testing. has add are think I not and disease candidates to to So XXX,XXX early Medicare. that could one over Neo, tests they're, that I in potentially MRD be positions then my there's been which test are is deleting of I think earlier great breast need patients that

in super cancer area. So excited the we're breast

brings I think its the RaDaR that sensitivity profile outstanding. is with and specificity

to going want so great this you to be anything. And opportunity. I And is add think a Clive

Clive Morris

NeoGenomics. across support on I'd exclusively two only we of has will is have course, also other be Agendia types cancer, and part additional other other test cancer the because is of in not colorectal so. the are that bits I'd driving this covers agreement breast U.S. whereas, of clarification alongside say a utility like the EU, lung breast tumor at efforts Agendia part with the RaDaR focused we the kind And and just Agendia the Again And

European commercialization terms well. breast and in to Union as bringing the again, of So that cancer channel

efforts. will different may complimentary different two things drive be the about house partnerships future in think in yes areas geographies. many ways, breast there to in alongside they're as though to help well that So just within say, it additional And cancer and

a around we're great do quickly how need Something it test as patients to many is test as the looking believe who as currently get we possible which at possible. we as

Matthew Sykes

Helpful. Yes. That's opportunity very When you more helpful picture. for like just there's bigger talking lastly, sounds then an services pharmacy were about it ex-US. and

growing expanding You mentioned plan in do diagnostics. in I'm you sure things, it. have mind are business of sort other and that there terms a of ex-US

Clive Morris


just several to that. We evaluating are ways do

quality, As know, compliance. offerings including multitude reagent a include factors, companion you diagnostic of

and looking at we what building So what we and need. it have versus we're assessing might it, buying

expansion, services would we this. in Yes. seen that vague, that also I've it's lot two add on there's me. of So know about pharma I've it excited business or M&A. just a maybe at ways And but go ourselves what different that just points that's looking the including I I what could doing overall,

one We work certainly closely. and other manufacturers we we CROs with effective with is labs. other some the the with partnering. So with work very test work at team is, work devices, We extremely of like kit

well. the to we exciting to have true of to one business thing success and the that And collaborate is not does they on you opportunities, ex-US other of clinical been the be of world. the the We that but to in thing couple this that studies to the able is will locally. successful it's and in is around global We pharma accounts. something in Neo that bringing physician labs And can't what core And I diagnostic sort center. in be got already focus focus U.S. China they're of I is but front driving customer and that that excellent, because certainly globally, a services are the full be a the partnerships so have think just if to or for do announced lab partner partner that's here to with renowned really pharma exceptionally collaborating testing is you driven think locally that have run you've

We are tests. We're to customize really able responsive.

And does really do been the think that core success because the front deliver nobody with that that a fantastic only service us first. pharma I I thing has study of a mindset companies and on customer about levels, Neo to test how in the believe. is we have they We want company that and of thinking better like a than

Mark Mallon

your answer question? that Does

Matthew Sykes

Yes. great. it. That's Appreciate guys. you, Thank


Thank you.

from at today Bank of America. Bruin De next Our Derik question is coming

is line live. Your

Derik De Bruin

But in, with to obviously, the answered. things. Hi, for the how that's a and significantly a coming taking want then to just Thanks Can you ramp bit question. a up. up mean, going have pick I Most good investment follow I I to morning. couple R&D them little going of have talk been clarify Inivata of that's about more the and

Mark Mallon

to talk ramp R&D you of Kathryn expenses and want overall? about

Kathryn McKenzie

in like expenses. Yes. in month a back The And our We the increasing do addition particular, burning to half going focused $X R&D RaDaR. related investment again, R&D $XX future turn for commercialization looking Inivata are mentioned, could and exhibition to years future that about expect cash. And at a to we million and Inivata before, Mark a are of of lot year Inivata then what that we see as prepare the mentioned the support R&D. of before going $XX in of preparing We've around you're do for year increased definitely said look will the Trapelo million of in further as is that we as that was forward development the around the quarter. million to be

Derik De Bruin

evidence epigenetic on and to And your of just component That's some on sort for. expand the maybe need enhanced I like the epigenetic to by bigger approach. to indications be it There assay the then thoughts mean on when can of on data of on overall a, looking was adding from And an particularly in sort there? they're just other aware to it from the the thoughts just mean, thanks. just stuff any Great, data cancer the the the what that question that is companies. seem at from the I we recurrence. approaches? versus expect looking the just out to you want analysis market? for the coming see your certainly I need, at and just two does of guess, or literature looks look good you personalized of markers other Are studies, the some MRD some comparing But out the I market. a I data

Mark Mallon

that? do to want take you Clive Sure.

Clive Morris

Yes certainly.

for brief. are for I'll to and the searching question. early to essentially, low. thanks Cognizant therapy very have cancer very try people and are stage time, levels these DNA of sensitivity So cancer really But be undergone DNA, of patients who

not fixed be with So to panels traditional enough. sensitive tend sequencing

two to is personalize. is one pursued try people and the avenues have So

of tracking down you're that number no variants, route. So and

competitive. we're in see adding levels at advantages into sensitivity tracking what variance, the on the sensitivity for today see technology say what other that that of very And determined an that But of not be move be and with the actually, but as we we'll we're to to the can We really, improve that to epigenetic our other seeing can test. try believe more high the will incredibly between changes, with is further very there one other the by may those abundant that example, they that seeing RaDaR have for that sensitive we are, believe both actually, things you sensitivity. with and on be they test see. improved and pleased what The that look based be and we couldn't such markers we're epigenetics

preliminary have out recurrence got months plans data these in of things and detecting is very were things showed future we relapse relapse. we look detection recurrence monitoring, the these we're year reliable clinical but the to at So may CTDNA like in based imminent add studies to actually the fact you we many ahead as of and on say there's early we no

I already with a So we high can degree accuracy. do that think precision of and

something it's look to So at.

today, these in will And will comparative of trial are difficult. come notoriously of independent validating time, at there are the sort through terms bet will as studies still they In some head this point be patient tests some meantime, we as did more, course, you that these in tests the reason where studies. comparisons of studies see some we'll fully And before enable studies equivalent we're cross more of think the populations, to part are comparisons prospective to it these duration. made. probably very completed is or a long head setting those we're And time But in of I come. study off

take So do. time to long they a

So number even years before a starting of today would they read be out.

Mark Mallon

thanks for and hopefully Derek that answered it. question Okay, Clive that

Derik De Bruin

Yes, you. thank

Mark Mallon

one But question running Okay. Well, thanks questions. for more over. We'll all more we'll Apologies question. little up. then the for and great take take a one bit wrap


you. Thank

today will be question at final coming James. Our Raymond from Cooper Andrew

live. is line Your

Mark Mallon

Andrew. Hi

Andrew Cooper

from And well about indications think like of we some feel do where others or assay started. the top data competitors just carve to what cancers be are of the the how a be kind here Hey asked. pathway end, maybe it bit things for you we we think and like one from partnering the little to we pharma the But bump some been at sneaking that focus. of think a where Do when comparing efforts some everyone. with maybe as you for have that as and with think guess generation lots in there there's out fast RaDaR just seems should again, But certainly first. before Agendia priority a less Thanks me we to focus a _ about prospective you and a in data the good especially about follower the rather but talked that your layering, would as you want I of about stack? about

of of Just thinking about sort and indications. the stacking ordering

Clive Morris

sure that Yes. a answer all way to of _ those other than things you very can in allude possible. I'm short, I not succinct are

in already market cancer, for clearly some colorectal the there So very example. assays are

we based could be could still still if very nascent. the And would fast that we a clearly, think believe on profile compelling. So, see we and that, entered we be follower, be market we we is first we not but

opportunity we and developing, still we're So good think is there of follower. a fast

be we believe may tumor certainly is some nature somewhat personalized agnostic. would we say means more can you difficult We of case. we may well in I possible. of the that last question of open see is that essay may also versus think an also essay, a for that the indications and are indications like, that a others epigenetic based levels the up exploring last high be the where We indications be part leading number And the certain if sensitivity

need different the utility clearly value in look data. develop we take are that's to the need certainly strategy tumor to clearly And and able essay So the any to indication. the at We're same proposition pursuing. types. into We the we

may see leading. So some a follower some we mix and be expect in of where to fast

Mark Mallon

great actually, cancer end behalf I I'd the of everybody So doing are patients. like important questions. around work world members for to again, say, thanks, on the the incredible need with our probably that team most thing NeoGenomics the XXXX to to

heart people NeoGenomics Every carries As their in as on were our so and just that said in away. around really I'm I've is I bring earlier, through video my calls labs, the is, site impressed they that two the commitment. really commitment been passion with breath and and cancer the taking their patients employee

colleagues. appreciate Really So my it. thanks all Thanks everybody. to


conclude event. Thank does and this gentlemen you. Ladies today's

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