NeoGenomics expands with Pathline acquisition in Northeast US

FORT MYERS, Fla. - NeoGenomics, Inc. (NASDAQ:NEO), a provider of cancer diagnostics and precision medicine solutions currently trading at $8.78 and maintaining a market capitalization of $1.13 billion, has finalized its acquisition of Pathline, LLC, a New Jersey-based certified laboratory, the company announced today. This move aims to enhance NeoGenomics’ commercial reach in the Northeast United States, building on its impressive 11.65% revenue growth over the last twelve months.

The acquisition of Pathline, a CLIA/CAP/NYS-certified laboratory, allows NeoGenomics to expand its oncology testing services, including molecular and hematology-oncology diagnostics. The integration is expected to provide patients and physicians in the Tri-state area with greater access to NeoGenomics’ extensive test menu and high-quality laboratory services. According to InvestingPro analysis, while the company is currently operating at a loss, analysts expect it to return to profitability this year.

NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories across the United States, as well as a full-service sample-processing laboratory in the United Kingdom. The company focuses on cancer genetics testing and information services, offering a broad range of diagnostics across the cancer continuum to various healthcare stakeholders.

The financial terms of the acquisition were not disclosed in the press release statement. This strategic expansion is part of NeoGenomics’ efforts to accelerate growth in key areas of oncology diagnostics and to bolster its service capabilities in the region.

The company’s commitment to providing advanced diagnostic and predictive testing is expected to support healthcare professionals in diagnosing and treating cancer more effectively. With this acquisition, NeoGenomics continues to strengthen its position in the oncology diagnostic market, aiming to improve patient care through precision medicine.

This news is based on a press release statement from NeoGenomics, Inc. With analyst price targets ranging from $16 to $26, significantly above current trading levels, InvestingPro subscribers can access detailed analysis and 6 additional key insights about NeoGenomics’ growth potential through comprehensive Pro Research Reports, available exclusively on the platform.

In other recent news, NeoGenomics reported its fourth-quarter 2024 earnings, where the company exceeded earnings per share (EPS) expectations by $0.01, achieving $0.04 per share. However, the company’s revenue of $172 million fell short of the forecasted $173.05 million, leading to a 17% decline in full-year revenue to $476 million. Despite this, NeoGenomics saw a 70% growth in adjusted EBITDA for the full year, reaching $64 million. In a move to strengthen its market position, NeoGenomics acquired Pathline LLC, enhancing its presence in the Northeast and improving service offerings. Analyst Bruce Jackson from Benchmark maintained a Hold rating on NeoGenomics, projecting a full-year 2025 revenue increase of 11-13%, while Piper Sandler reaffirmed its Overweight rating and $18.00 price target, expressing confidence in the company’s management changes. Tony Zook has been appointed as the new CEO, succeeding Chris Smith, who will remain in an advisory role. These developments highlight NeoGenomics’ strategic efforts to expand its market reach and maintain investor confidence amidst management transitions.

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