NEW YORK – NeoGenomics announced Tuesday a 51 percent year-over-year uptick in its third quarter revenues, with growth in both its clinical services and pharma services businesses.
For the three months ended Sept. 30, total revenues reached $104.7 million, up from $69.1 million in Q3 2018. It beat the analysts' average estimate of $99.1 million.
Organic revenue growth was greater than 20 percent, the company said.
On a conference call, NeoGenomics CEO Douglas VanOort noted strong performances in both business divisions and year-over-year growth acceleration since the company acquired Genoptix last year.
Clinical services revenues grew 56 percent from the same quarter last year to $92.6 million from $59.5 million. Meanwhile, pharma services revenues grew 26 percent to $12.1 million, an increase from Q3 2018 revenue of $9.7 million. The pharma backlog increased 22 percent year-over-year to $118 million. VanOort specifically noted revenue increases in flow cytometry and immunohistochemistry.
Clinical test volume grew 35 percent year-over-year to 250,518 from 185,738, and average revenue per clinical test increased 15 percent to $369 from $320, which the company attributed primarily to the Genoptix acquisition and a favorable test mix. This is the fifth consecutive quarter revenue per test has increased, VanOort said on the call.
The number of requisitions received grew 34 percent to 145,312, compared to 108,467 in the same quarter in 2018.
The company announced it has delayed the migration of Genoptix customers by three months to allow more time to smooth out the transition.
On the call, VanOort noted that growth occurred across all testing modalities, with next-generation sequencing and molecular testing growth rates accelerating in excess of 50 percent. The company has multiple new tests in development leveraging next-generation sequencing, including a comprehensive genomic profile for hematologic cancer, a 500-plus-gene solid tumor profile, a suite of liquid biopsy offerings, and an NGS-based test for minimal residual disease.
The company opened a new office in Singapore and hired nearly 200 new employees during the quarter, and it has plans to open more laboratories and offices around the world. VanOort also emphasized the company's companion diagnostics work with pharma partners, noting that NeoGenomics has two dozen companion diagnostics assays in the pipeline, with discussions to add more.
In Q3 2019, the company's R&D spending increased 485 percent to $2.6 million, compared to $446,000 in Q3 2018. Its SG&A costs rose 59 percent year over year to $44.6 million from $280 million.
NeoGenomics posted a profit attributable to its common shareholders of $2.1 million, or $.02 per share, during Q3 2019 compared to a profit of $2.0 million, or $.02 per share, a year ago. Adjusted EPS for the recently completed quarter was $.07 and beat the consensus Wall Street estimate of $.06
The company exited the quarter with $178.9 million in cash and cash equivalents.
For full-year 2019, the firm increased its revenue guidance to a new range between $401 and $406 million from a previous range of $388 to $402 million last quarter. Net income is expected to be in the range of $1 to $3 compared to a previous guidance of a loss of $1 to a gain of $3.
EPS for the year is anticipated to be between $.01 and $.03, while adjusted EPS is expected to be between $.25 and $.27.
In afternoon trading on the Nasdaq on Tuesday, NeoGenomic's shares were up more than 9 percent at $22.85.