NeoGenomics Highlights NGS, MRD Growth Strategy at Morgan Stanley Conference

Key Points

• NGS is a major growth engine: It represents about 10% of NeoGenomics’ test volume but roughly one-third of clinical revenue, with revenue exceeding $250 million and growing 26%. Larger panels, revenue-cycle initiatives and payer actions are expected to support future growth.
• MRD and liquid biopsy are expanding the opportunity: Coverage for RaDaR ST’s immuno-oncology applications increases its addressable market by about $4 billion, while PanTracer LBx is expected to become a substantial contributor in 2027–2028.
• The company is focused on workflow solutions for community oncology: NeoGenomics is simplifying testing and treatment selection through offerings such as PanTracer Pro, while directing capital toward sales expansion, clinical studies, technology infrastructure and product platforms rather than major acquisitions.

NeoGenomics NASDAQ: NEO executives outlined the company’s strategy to expand its role in community-based precision oncology, emphasizing growth in next-generation sequencing, minimal residual disease testing and workflow tools designed for physicians treating patients closer to home.

Speaking at the Morgan Stanley Healthcare Conference, Chief Executive Officer Tony Zook said the company remains focused exclusively on oncology and on serving community providers, where it estimates nearly 80% of patients receive treatment. NeoGenomics began with diagnostic testing but has expanded its portfolio to include therapy selection and MRD testing, he said.

Zook said investors may underestimate the company’s existing NGS business. Although NGS represents about 10% of NeoGenomics’ test volume, it accounts for roughly one-third of clinical revenue, he said. The company’s NGS portfolio exceeds $250 million in revenue and was growing 26%, according to Zook.

Community Oncology Focus

Zook and Chief Operating Officer and President Warren Stone differentiated the company’s approach to community oncology from that of providers focused on academic medical centers. Community physicians often operate under time constraints, see a broad range of cancer types and require practical, guideline-based testing workflows, the executives said.

Stone said NeoGenomics offers nearly 500 tests spanning diagnosis, therapy selection, MRD, solid tumors and hematologic cancers. The breadth of that portfolio can allow providers to standardize their external testing with a single laboratory partner, he said.

NeoGenomics is seeking to reduce administrative and clinical friction through care pathways and simplified ordering. Stone cited the company’s PanTracer Pro offering, launched earlier this year, which enables physicians to provide a patient’s cancer type and stage while NeoGenomics determines the appropriate testing approach based on guidelines and its OncoTree classification system.

The resulting report can include potential therapy options and available clinical trials, Stone said. The company may also perform reflex testing or add-on testing where needed.

“It’s not distinct products. It’s really around a workflow solution,” Stone said of the PanTracer family, which includes tissue- and liquid-based offerings for solid-tumor therapy selection.

NGS Growth and Revenue-Cycle Initiatives

Chief Financial Officer Abhishek Jain said NGS revenue increased 26% during the first half of 2026. Volume growth was in the mid-teens, with the remainder of the increase stemming from revenue-cycle-management, or RCM, initiatives.

Jain said larger NGS panels are growing more than 20% as the company sees a shift away from single-gene and targeted panels. That mix shift has affected both volume metrics and average unit pricing, he said.

• About two-thirds of NGS RCM growth came from the mix shift toward larger panels, according to Jain.
• The remaining RCM growth came from contractual and policy wins, pricing actions, collection initiatives and commercial payer efforts.
• More than 60% of clinical revenue is derived from direct client billing, Jain said.

The company implemented the XiFin billing system in the third quarter of 2026. Jain said the platform is intended to improve collections processes and operational efficiency as NeoGenomics shifts toward more NGS and MRD testing.

Looking ahead, Jain said investors should generally expect about half of the company’s growth to come from volume and half from RCM on a go-forward basis. Zook said NGS and MRD could grow from about one-third of the business today to more than half over time, supporting both revenue and margin expansion.

MRD and Liquid Biopsy Opportunities

Stone said NeoGenomics’ recently obtained coverage for immuno-oncology, or IO, applications of its RaDaR ST MRD test expands the company’s addressable market by about $4 billion, out of an estimated $20 billion MRD market. The coverage also enables the company to present RaDaR as a pan-cancer offering, rather than one limited to specific indications, he said.

According to Stone, RaDaR ST can detect disease at levels as low as one part per million and has a substantial body of peer-reviewed publications. NeoGenomics also has reorganized its commercial structure into separate pathology and oncology sales teams, with the oncology organization reaching what Stone described as a critical scale in July.

For PanTracer LBx, the company’s liquid-biopsy product, Zook said the key requirement for a more meaningful contribution is time. He said the liquid offering has complemented the broader PanTracer portfolio and helped support adoption of tissue-based testing. NeoGenomics expects liquid biopsy to become a substantial contributor in late 2027 and 2028, he said.

Cash Flow and Capital Allocation

Jain said NeoGenomics remains focused on becoming free-cash-flow positive for the full year. He cautioned that quarterly cash flow can be affected by timing factors, including payroll cycles and the cash payment related to a Department of Justice settlement in the third quarter.

With most of its 2028 convertible notes refinanced, Jain said the company does not need major acquisitions to fill product portfolio gaps. Instead, he identified sales-force expansion, research and development, clinical studies, IT infrastructure and product platforms as key uses of capital. NeoGenomics has also said it plans to transition from the NovaSeq 6000 platform to NovaSeq X, an investment Jain said could support growth and operational efficiency.

About NeoGenomics (NASDAQ:NEO)

NeoGenomics, Inc is a provider of cancer-focused diagnostic testing and contract research services. The company operates clinical laboratories that support physicians, hospitals and other healthcare organizations with information used to help diagnose, classify and monitor cancer.

Its testing services include anatomic pathology, immunohistochemistry, flow cytometry, cytogenetics, fluorescence in situ hybridization, molecular testing and next-generation sequencing. NeoGenomics also provides biopharmaceutical companies with clinical trial testing, central laboratory services, biomarker development and other research services intended to support the development of oncology therapies and companion diagnostics.

Founded in 1999, NeoGenomics serves healthcare providers and pharmaceutical and biotechnology customers primarily in the United States, with additional capabilities supporting international clinical research programs.

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