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Citing MDx Reimbursement Changes, NeoGenomics Reports Flat Q2 Revenues

NEW YORK (GenomeWeb News) – Cancer genetics diagnostic company NeoGenomics today reported flat revenues for the second quarter, as changes to Medicare's reimbursement for molecular diagnostics negatively impacted operations.

The Fort Myers, Fla.-based company said that revenues for the three months ended June 30 totaled $15.6 million, the same as a year ago.

In a statement, company Chairman and CEO Douglas VanOort said that changes to Medicare's molecular diagnostic reimbursements "resulted in approximately $275,000 less revenue than we would have otherwise reported," echoing similar complaints recently voiced by Sequenom and Luminex, who also said that the changes to billing and payment codes related to molecular tests adversely affected their revenues during the second quarter.

VanOort also said that $150,000 of expected clinical trials work had been pushed back into the third quarter, further reducing second-quarter revenues from what had been expected.

NeoGenomics posted a profit of $273,000, or $.01 per share, for the second quarter, compared to $551,000, or $.01 per share, a year ago.

R&D expenses increased 17 percent to $616,000 from $528,000, while SG&A costs remained $6.0 million.

The company ended the second quarter with $4.6 million in cash and cash equivalents.

It said that revenues are anticipated to be in the range of $15.8 million and $16.4 million for the third quarter, with EPS at breakeven to $.01. For full-year 2013, revenue is anticipated in the range of $63 million to $66 million. EPS is forecast at $.01 to $.04.