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Building One Growth-Driven Company l 1Building One Growth-Driven Company l 1
Company Overview Presentation
March 2016
Building One Growth-Driven Company l 2
Forward-looking Statements
This presentation contains statements which constitute forward-looking statements within
the meaning of Section 27A of the Securities Act, as amended; Section 21E of the Securities
Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. The words
“may”, “would”, “could”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “intend”, “plan”,
“goal”, and similar expressions and variations thereof are intended to specifically identify
forward-looking statements. All statements that are not statements of historical fact are
forward-looking statements.
Investors and prospective investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties, and that
actual results may differ materially from those projected in the forward-looking statements
as a result of various factors. The risks that might cause such differences are identified in
our filings with the Securities and Exchange Commission. We undertake no obligation to
publicly update or revise the forward looking statements made in this presentation to reflect
events or circumstances after the date of this presentation or to reflect the occurrence of
unanticipated events.
Building One Growth-Driven Company l 3
Investment Highlights
Fast growing cancer genetics
lab servicing Oncologists,
Pathologists and Hospitals
Strategic client
partnerships created by
“Tech-Only” model
Dynamic, rapidly-
growing and consolidating
industry
Industry-leading revenue
& test volume growth
Most Comprehensive Cancer
Testing Menu in Industry
Strong Management Team
with large cap lab
experience
Acquisition of Clarient Should more than Double Revenue
and more than Triple Adj. EBITDA in 2016
Building One Growth-Driven Company l 4
Experienced Management Team
• Douglas VanOort, Chairman & CEO
Chief Operating Officer, Quest Diagnostics
Executive Vice President, Corning Life Sciences, Inc.
• Maher Albitar, M.D., Chief Medical Officer & Director of R&D
Med. Dir. for Hematopathology & Oncology and Chief of R&D, Quest Nichols Institute;
Director of Leukemia and Molecular Laboratory, MD Anderson Cancer Center
• Robert Shovlin, Chief Growth Officer
Chief Development Officer, Bostwick Laboratories
President & Chief Executive Officer, Aureon Biosciences
• Steven Jones, Director, EVP – Finance, & Chief Compliance Officer
Chairman, Aspen Capital Group; Managing Member, Medical Venture Partners
Vice President, Merrill Lynch Investment Banking
• George Cardoza, Chief Financial Officer
CFO, Protocol Global Solutions; Controller, Central Region, Quest Diagnostics
• Mark Machulz, Vice President, Operations
Director of Operations - Clarient Diagnostic Services
• Steven Ross, Chief Information Officer
Vice President Technology, Chico’s FAS, Inc.
Building One Growth-Driven Company l 5
1,1524,082
12,838
20,998
32,539
45,675
57,332
76,288
114,606
137,317
177,279
221,033
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$558
$1,885
$6,476
$11,505
$20,015
$29,469
$34,371
$43,484
$59,866
$66,467
$82,194
$91,048
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
NEO’s Proven Track Record of Consistent Growth
Base NEO* Annual Revenue Base NEO* Tests Performed
($, 000s)
* Base NEO represents organic revenue and test volume growth from legacy business and excludes the impacts from the PathLogic and Clarient acquisitions.
Building One Growth-Driven Company l 6
3-4% Price Increase Expected in 2016 After 6 Years of AUP Declines!
* For comparison purposes Base NEO excludes the impacts from the Path Logic (completed 7/8/14) and Clarient acquisition (completed 12//3015).
(1) Productivity calculated as the average number of lab tests completed per month per laboratory FTE.
45.9%
44.7%
44.8%
47.7% 48.0%
46.5%
-36.2%
54.0%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
35%
40%
45%
50%
55%
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Gross Margin % Cum Change in Avg Rev/Test Since 2009 Cum Change in Productivity Since 2009 (1)
CumChangeinAvgRev/Test&Productivity
GrossMargin
Historically, Steady Margins Despite Lower Avg Unit Prices – Base NEO*
Building One Growth-Driven Company l 7
Customer Targets
Pathologists & Hospital Pathology Groups (about 81% of 2015 Revenue*)
• Enable community Pathologists to practice using sophisticated tools and tests
• Innovative technical component (TC or “tech-only”) services – Flow, FISH, IHC
• Outstanding Web-based Lab System & extensive training programs
Oncologists & Clinician Groups (about 15% of 2015 Revenue*)
• Includes Hematologists, Oncologists, Dermatologists, Urologists
• Disease Panels and comprehensive molecular menus
• Increasing Opportunity to service larger practices with Tech-only model
Clinical Trials & Other (about 4% of 2015 Revenue*)
• Contract research/clinical trial support work for Pharma clients
* Percentages are for Base NEO only and exclude the impacts from the Path Logic acquisition (completed 7/8/14) and Clarient acquisition (completed 12//3015).
Building One Growth-Driven Company l 8
Rapidly Growing Market Opportunity
The exploding cost of cancer care offers extraordinary opportunities for those labs that can
deliver innovative and value-based solutions to the healthcare system.
Source: National Institutes of Health (NIH)
Building One Growth-Driven Company l 9
Accelerating Pace of Innovation
• 70 new/revised tests, incl:
NeoLABTM Liquid Biopsies
• MDS/CMML Profile
• AML Profile
• FLT3 Mutation Analysis
• NPM1 Mutation Analysis
• PML-RARA Translocation
• RUNX1-RNX1T1Transloc
• INV16 Translocation
• c-kit Mutation Analysis
• IDH1 Mutation Analysis
• IDH2 Mutation Analysis
• NRAS Mutation Analysis
• KRAS Mutation Analysis
• BTK Inhibitor Resistance
• Solid Tumor Monitoring
Germline MolDx Testing
• BRCA1 & BRCA2
• Lynch Syndrome (colon)
• 73 Gene Comprehensive
Predisposition Panel
Other
• ALK, ROS1, RET Fusion
• Sarcoma gene Fusion
• NeoSITE Cervical FISH
• Expanded IHC Menu
• Smart Flow Cytometry
• 10-color Flow Cytometry
• Implemented Adv MolDx
platform in lieu of Kits
• 28 new Molecular Assays
• Proprietary method for
increasing sensitivity of
Sanger sequencing
• 7 NeoTYPE MolDx Panels
• SVM for FISH (Patent App)
• Barrett’s Esoph. FISH (Patent
App)
• NeoARRAY/SNP Cytogenetics
• Internalized send-outs
• 40 new Molecular tests
• Add’l NeoTYPE Panels
• Next Generation Sequencing
(48 genes)
• ROS1 FISH
• NeoSITE Melanoma FISH
• Plasma/Urine-based
Prostate Test (Patent App)
• SVM-based Cytogenetics
Analysis System
• SVM-based Automated FISH
Analysis System v2
• Began development of
NeoLAB (Liquid Alternative
to Biopsy) Prostate Cx test
2015
2012
2013
• 60 new/revised MolDx tests
• 24 new NeoTYPE Next
Generation Sequencing
Profiles
• 26 new IHC/ISH tests
• Additional NeoLAB Prostate
clinical studies
• AML Extended FISH Panel
• AML Favorable-Risk FISH
Panel
• MDS Extended FISH Panel
• Plasma Cell Myeloma Risk
Stratification FISH Panel
• RET FISH
• MET FISH
• ALL Adult & Pediatric FISH
Panels
• HER2 Breast Equivocal FISH
Panel
• BRAF Translocation FISH
• Chromosome 1 POC Ploidy
• Launched robotic FISH-Cyto
processing platform
2014
Building One Growth-Driven Company l 10
Accelerating Same Store Sales*
* Base NEO represents organic revenue and test volume growth from legacy business and excludes the impacts from the PathLogic and Clarient acquisitions.
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Year-Over-Year Total % of Test Volume Growth
Same Store Year-over-year Growth w/o FCS FCS Year-over-Year Growth Other Year-over-Year Growth
Building One Growth-Driven Company l 11
Strategic Rationale of Clarient Acquisition
1. Lab scale allows opportunity to be the low-cost provider in each key
laboratory discipline.
2. Better balance of clinical products and payors to reduce concentration risk.
3. Significantly enhanced Clinical Trials capability.
4. Create greater economies of scale in IT, Regulatory, Billing, Compliance, etc.
5. Leverages and optimizes the Sales and Marketing function across a broader
revenue base with more diverse geographic coverage.
6. Leverages innovation & product development across broader client base.
7. Greater ability to serve Managed Care and large buyers in a significant way.
8. Better “one-stop-shop” capability and services to existing and new clients.
Building One Growth-Driven Company l 12
Confidential
New
NextGen
Digital Companion
Pathology Dx
Oncology
Technologies: FISH Clinical Trials
Flow
Cytogenetics
Traditional
Old Anatomic Path.
Low Market High
Growth
12
Consistent with NEO’s Acquisition Strategy
NEO Focus – Upper right hand quadrant
Synergistic
Deals
High
HighLow Market Growth
Technologies
Clarient Attributes
 Technology leader
 High growth (clinical
trials)
 Revenue scale
 Nationwide presence
 Complementary
footprint
 Geographic proximity
 Ongoing GE affiliation
Building One Growth-Driven Company l 13
Key Benefits
• Synergy potential of $20mm - $30mm/year within 3-5 year
– Laboratory, Purchasing, Cross-selling, etc.
• East Coast/West Coast labs
– Combine Irvine and Aliso Viejo
• Low cost position in every testing discipline
– FISH, Flow, Cytogenetics, IHC, Digital Pathology, Molecular
• Leadership in hematological and solid tumor cancers
– One-stop-shop for clients with broad geographical coverage
• Potential to be a leading consolidator going forward
• GE as significant long-term Investor
– Collaboration in Bioinformatics in Precision Oncology
• Significant clinical trials business
– Combined business approximates $25mm revenue
Building One Growth-Driven Company l 14
Growth – Expanded Geographic Coverage
NEO Field Sales Representation (27)
Clarient Field Sales Representation (27)
Does Not Include Sales Management or Managed Care
Building One Growth-Driven Company l 15
Organic Growth through Market Demand
Core
Growth
5 – 10%
Demographic
Changes
Market Share
Gains
Innovation Driven
Growth
5 – 10%
Constant Test
Development
Liquid Biopsies
“plasma tests”
“Smart
Medicine”
BioPharma
Growth
15 -20%
Clinical Trials Companion Dx
We have very real opportunity to grow volumes 10-20% annually in each of our clinical and
biopharma businesses for a long time…
Building One Growth-Driven Company l 16
Recent Financial Information
(Dollars in Millions)
Clarient NeoGenomics Comined
2015 2015 2015
Pro Forma Audited Pro Forma
Revenue 116.8$ 99.8$ 216.6$
Estimated Revenue using Neo Policie 125.0 (1)
99.8 224.8
EBITDA* 5.7 (2)
9.7 15.4
Pro Forma Adjusted EBITDA 9.2 (3)
9.7 18.9
(1) 2015 Revenue using NEO's Policies adds back 7% of net revenue for bad debt and moves this charge to G&A.
(2) 2015 EBITDA excludes a $47.6 MM impairment charge to reduce the value of intangibles.
(3) Pro Forma Adjusted EBITDA includes adjustments to reflect the business being acquired.
Building One Growth-Driven Company l 17
Confidential
Implied Valuation & Revenue Multiple
($ and shares in milllions) Shares Issued
Transaction
Consideration
Cash $80.0
FMV of Common Stock at Issue 15.0 $102.5 (1)
FMV of Preferred Stock at Issue 14.7 $73.2 (2)
Transaction Enterprise Value (3) $255.7
Clarient Revenue
2015 ProForma Revenue $116.8
2015 ProForma Revenue - NEO Method (4) $125.0
Transaction Value/ LTM Revenue
2015 ProForma Revenue 2.19 x
2015 ProForma Revenue - NEO Method (4) 2.05 x
(1) GAAP fair market value accounting required a 15% illiquidity discount be placed on the shares issued at Close.
(2) A Monte Carlo Simulation was utilized to determine the FMV of the Preferreed Stock as of the Closing Date.
(3) Transaction contemplated a debt-free & cash free closing with customary post closing adjustments for working capital.
(4) Historically Clarient has recorded bad debt in Net Revenue, whereas NeoGenomics has recorded bad debt in G&A.
Thus, we have made a pro forma adjustment to put Clarient's revenue on a similar basis to NEO's revenue.
Building One Growth-Driven Company l 18
Confidential
2016 - Combined Pro Forma Revenue Bridge(1)
(1) Preliminary Estimate - Subject to further refinements after close
We estimate combined revenue of approx. $240 – $250 mm in 2016…
 CMS Reimbursement estimates includes net positive price adjustments of $4-5 mm for NEO and $3-4 MM for
Clarient. We estimate Revenue Distractions of approximately $6 million relating to sales pipeline reductions.
 Clarient revenue includes estimated Bad Debt rate for Clarient, previously included in net Revenue
$0
$50
$100
$150
$200
$250
$300
Neo Clarient* CMS Fees Distractions New Neo
$118mm
$125mm
($6mm)
$8mm $245mm
Building One Growth-Driven Company l 19
Confidential 19
2016 Pro Forma Adjusted EBITDA Bridge (1)
 NEO expects to realize significant EBITDA growth and cost synergies in 2016 and beyond as a result of
efficiencies gained through the combination with Clarient
– The 2016 PF Adjusted EBITDA bridge conservatively estimates a $3mm reduction to Adjusted EBITDA as
a result of revenue distractions expected during the integration
(1) Preliminary Estimate – Subject to further refinements
$0
$5
$10
$15
$20
$25
$30
$35
$40
Neo Clarient CMS Fees Synergies Distraction New Neo
$15mm
$9 mm
$8 mm
$6mm
($3mm)
$35mm
We estimate combined Adj. EBITDA of approx. $33 – $38 mm in 2016…
Building One Growth-Driven Company l 20
Current 2016 Guidance
• Revenue: $240 - $250 MM
• Adjusted EBITDA 33 - 38 MM
• Adjusted Net Income* 7 - 12 MM
• Adjusted Diluted EPS* $0.07 - $0.12
* Adjusted Net Income in a non-GAAP measure which in defined by NeoGenomics as Net Income Available to
Common Stock plus (a) amortization of customer lists and other intangibles, (b) non-cash, stock-based
compensation, (c) non-recurring (income) or expense, (d) acquisition related transaction expenses, (e) deemed
dividends on preferred stock, and (f) amortization of preferred stock beneficial conversion feature. Adjusted
Diluted EPS assumes all preferred stock is converted into common shares. NeoGenomics believes that Adjusted
Net Income and Adjusted Diluted EPS provide a more consistent measurement of operating performance and
trends across reporting periods by excluding those cash and non-cash items of income and expense not directly
related to the ongoing operation from GAAP Income Available to Common Stock.
Building One Growth-Driven Company l 21
NeoGenomics Vision and Goals
Leadership Goals:
• Be the leading oncology-focused testing and information company in the World.
• Innovate aggressively to advance precision medicine.
• Be the highest quality and lowest cost provider in each product area
Competencies:
• Outstanding Scientific, Medical and Informatics expertise.
• Partnerships for efficiency/effectiveness across health-care care continuum
• Disciplined process management and quality systems.
• Entrepreneurial, values-driven culture.
Financial Performance Goals:
• Consistent and sustainable double-digit revenue growth.
• Clinical Trials > 15% of revenue.
• Adjusted EBITDA margin of 20-25% when annual revenue >$300 MM.
Building One Growth-Driven Company l 22
Appendix
20
Building One Growth-Driven Company l 23
Reimbursement is Finally Expected to Increase in 2016
Implied CY 2016 Physician Fee Schedule Rates Based on Inputs from CMS Final Rule CMS-1631-FC (Issued 10/30/15)
CPT Proc
Code Procedure Description
National
Unadj Rate
2014
National
Unadj Rate
2015
Prelim
Rule -
Implied
National
Unadj Rate
2016
(Issued
July 2015)
%
Change
2016
Prelim
Rule vs
2015
Final Rule -
Implied
National
Unadj Rate
2016 (1)
%
Change
2016 Final
Rule vs
Prelim
Rule
%
Change
2016 Final
Rule vs
2015
88184 FLOW 1ST MARKER 87.77$ 94.51$ 58.50$ -38.1% 76.31$ 30.4% -19.3%
88185 FLOW EACH ADDL MARKER 53.73$ 57.49$ 17.69$ -69.2% 46.22$ 161.3% -19.6%
88189 FLOW INTERP 16 OR MORE MARKERS 110.69$ 113.91$ 115.19$ 1.1% 114.29$ -0.8% 0.3%
88374 FISH AUTOMATED PER PROBE (Multiplex Probe Stain) 255.77$ 205.54$ 350.62$ 70.6% 346.10$ -1.3% 68.4%
88374-TC FISH AUTOMATED PER PROBE TECH (Multiplex Probe Stain) 193.08$ 160.26$ 304.40$ 89.9% 299.88$ -1.5% 87.1%
88374-26 FISH AUTOMATED PER PROBE INTERP (Multiplex Probe Stain) 62.69$ 45.28$ 46.22$ 2.1% 46.22$ 0.0% 2.1%
88121 FISH AUTOMATED - UROVYSION 508.30$ 556.97$ 566.92$ 1.8% 558.20$ -1.5% 0.2%
88121-TC FISH AUTOMATED - UROVYSION 459.99$ 505.23$ 514.56$ 1.8% 506.25$ -1.6% 0.2%
88121-26 FISH AUTOMATED - UROVYSION 48.31$ 51.74$ 52.36$ 1.2% 51.95$ -0.8% 0.4%
Uses G0461 in 2014
88342 IMMUNOHISTOCHEMISTRY (1st Stain) 88.48$ 90.91$ 108.69$ 19.6% 107.48$ -1.1% 18.2%
88342 - TC IMMUNOHISTOCHEMISTRY TECH (1st Stain) 57.67$ 54.26$ 71.14$ 31.1% 70.22$ -1.3% 29.4%
88342 - PC IMMUNOHISTOCHEMISTRY INTERP (1st Stain) 30.81$ 36.65$ 37.55$ 2.5% 37.26$ -0.8% 1.7%
Uses G0462 in 2014
88341 IMMUNOHISTOCHEMISTRY (Add'l Stain) 68.42$ 67.91$ 91.72$ 35.1% 90.64$ -1.2% 33.5%
88341 - TC IMMUNOHISTOCHEMISTRY TECH (Add'l Stain) 55.88$ 45.99$ 63.55$ 38.2% 62.70$ -1.3% 36.3%
88341 - PC IMMUNOHISTOCHEMISTRY INTERP (Add'l Stain) 12.54$ 21.92$ 28.17$ 28.5% 27.95$ -0.8% 27.5%
Uses G0461 in 2014
88344 IMMUNOHISTOCHEMISTRY (each Multiplex Stain) 88.48$ 117.50$ 176.58$ 50.3% 173.77$ -1.6% 47.9%
88344 - TC IMMUNOHISTOCHEMISTRY TECH (each Multiplex Stain) 57.67$ 77.26$ 135.41$ 75.3% 132.92$ -1.8% 72.0%
88344 - PC IMMUNOHISTOCHEMISTRY INTERP (each Multiplex Stain) 30.81$ 40.25$ 41.16$ 2.3% 40.84$ -0.8% 1.5%
88361 MORPHOLOGY, EACH ANTIBODY - AUTOMATED 157.98$ 170.32$ 122.77$ -27.9% 149.40$ 21.7% -12.3%
88361-TC MORPHOLOGY TECH, EACH ANTIBODY - AUTOMATED 98.51$ 109.96$ 65.72$ -40.2% 88.49$ 34.6% -19.5%
88361-26 MORPHOLOGY INTERP, EA ANTIBODY - AUTOMATED 59.47$ 60.37$ 57.05$ -5.5% 60.91$ 6.8% 0.9%
(1) Assumes no other Physician Fee Schedule (PFS) rule changes or limited coverage determinations are implemented for 2016.
Building One Growth-Driven Company l 24
Confidential
 Core business focused on IHC, Flow, FISH,
Cytogenetics and Molecular tests
 National reach with focus on both independent
and hospital pathologists
 Consistently strong growth - early development
to late stage testing
 ~ 200 projects in process for >30 customers
Clarient Overview
24
 IHC/Digital Pathology: Large and Industry leading capabilities
 FISH/ISH: Similar Instrumentation and capabilities
 FLOW: Similar instrumentation and capabilities
 Molecular: Smaller menu
 Cytogenetics: Similiar capabilities
Facilities/Infrastructure Customer Mix
Product Lines (1)
 78,000 sq. ft. Lab located in Aliso Viejo, CA
 Available Capacity due to efficient workflow
and processes.
 Uses similar equipment and Instrumentation.
 Uses similar IT Labs Systems and database
structure
 24,000 sq. ft. facility located in Houston, TX
IHC
42%
FISH/ISH
19%
FLOW
14%
Molecular
15%
Cyto
5%
Other
5%
(1) Clinical operations only. Percentage of tests Performed.
CLINICAL
CUSTOMERS
BIOPHARMA
CUSTOMERS and
Other
Building One Growth-Driven Company l 25
Confidential
Clarient Test Volume and Average Unit Price
Revenue by Customer Type: Tests
2013 2014 2015 PF 2013 2014 2015
Clinical $111.9 $106.5 $93.8 Clinical Revenue $111.9 $106.5 $93.8
BioPharma 13.8 20.7 23.0 Tests 297.7 284.7 271.3
Total Revenue 125.7 127.2 116.8 AUP
(1)
$376 $374 $346
Bad Debt Acctng Adj
(2)
6.6 6.7 8.2 Bad Debt Acctng Adj
(2)
19.8 19.7 26.1
Proforma Rev to NEO $132.3 $133.9 $125.0 Proforma AUP to NEO $396 $394 $372
(1) Average Unit Price is based on revenue from clinical testing (excluding BioPharm tests).
(2) Historically, Clarient booked Bad Debt as a reduction to revenue, wheras NEO books it in GA.
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
2013 2014 2015 PF
BioPharma
Clinical
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2013 2014 2015Est
Tests
Building One Growth-Driven Company l 26
Confidential
Clarient Revenue and Payer Mix in 2014
Payor Mix - 2014 Clinical Only
2014 Payor Mix
Client 39.6%
Insurance 34.4%
Government 12.4%
HMO 5.3%
Patient/Other 8.3%
Total 100.0%
Client
Insurance
Government
HMO
Patient/Other
Building One Growth-Driven Company l 27
Clarient Clinical Trials & BioPharma
A rapidly growing part of Clarient’s business and a fantastic opportunity . . .
• $23mm/yr. in current business
• Strong relationships with several leading
Pharmaceutical firms
• PDL1 22C3 – FDA Approved companion
diagnostic for Keytruda
• Continued push into Companion Dx and
personalized medicine
• Approved vendor with top firms
• On several firms advisory boards
• Solid pipeline and future growth
opportunities
Building One Growth-Driven Company l 28
Clarient Transaction Consideration
• $80 MM Cash
– $15 MM – NEO cash from balance sheet
– $10 MM – New, 5-year $25mm revolver
– $55 MM – New, 5-year Term Loan
• 14.67 MM Shares of Series A Redeemable Preferred Stock
– Issued at $7.50 per share
– Redeemable by NEO at any time at the issue price plus accrued PIK dividends
– Up to $10 MM discount for early redemption (declining discount over 4 years)
– GE Ability to convert to common after 3 years if common stock > $8.00 per share for 30
consecutive trading days.
– 4% annual PIK dividend begins 1/1/17 and increases after Year 4 by 1% per year to 10%
in year 10.
– Valued at $73.2 MM for GAAP fair market value on closing date
• 15 MM Shares of Common Stock
– Valued at $102.5 MM for GAAP fair market value on closing date

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NeoGenomics Company Overview Presentation 2016 03 14

  • 1. Building One Growth-Driven Company l 1Building One Growth-Driven Company l 1 Company Overview Presentation March 2016
  • 2. Building One Growth-Driven Company l 2 Forward-looking Statements This presentation contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended; Section 21E of the Securities Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. The words “may”, “would”, “could”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “intend”, “plan”, “goal”, and similar expressions and variations thereof are intended to specifically identify forward-looking statements. All statements that are not statements of historical fact are forward-looking statements. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The risks that might cause such differences are identified in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise the forward looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.
  • 3. Building One Growth-Driven Company l 3 Investment Highlights Fast growing cancer genetics lab servicing Oncologists, Pathologists and Hospitals Strategic client partnerships created by “Tech-Only” model Dynamic, rapidly- growing and consolidating industry Industry-leading revenue & test volume growth Most Comprehensive Cancer Testing Menu in Industry Strong Management Team with large cap lab experience Acquisition of Clarient Should more than Double Revenue and more than Triple Adj. EBITDA in 2016
  • 4. Building One Growth-Driven Company l 4 Experienced Management Team • Douglas VanOort, Chairman & CEO Chief Operating Officer, Quest Diagnostics Executive Vice President, Corning Life Sciences, Inc. • Maher Albitar, M.D., Chief Medical Officer & Director of R&D Med. Dir. for Hematopathology & Oncology and Chief of R&D, Quest Nichols Institute; Director of Leukemia and Molecular Laboratory, MD Anderson Cancer Center • Robert Shovlin, Chief Growth Officer Chief Development Officer, Bostwick Laboratories President & Chief Executive Officer, Aureon Biosciences • Steven Jones, Director, EVP – Finance, & Chief Compliance Officer Chairman, Aspen Capital Group; Managing Member, Medical Venture Partners Vice President, Merrill Lynch Investment Banking • George Cardoza, Chief Financial Officer CFO, Protocol Global Solutions; Controller, Central Region, Quest Diagnostics • Mark Machulz, Vice President, Operations Director of Operations - Clarient Diagnostic Services • Steven Ross, Chief Information Officer Vice President Technology, Chico’s FAS, Inc.
  • 5. Building One Growth-Driven Company l 5 1,1524,082 12,838 20,998 32,539 45,675 57,332 76,288 114,606 137,317 177,279 221,033 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $558 $1,885 $6,476 $11,505 $20,015 $29,469 $34,371 $43,484 $59,866 $66,467 $82,194 $91,048 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NEO’s Proven Track Record of Consistent Growth Base NEO* Annual Revenue Base NEO* Tests Performed ($, 000s) * Base NEO represents organic revenue and test volume growth from legacy business and excludes the impacts from the PathLogic and Clarient acquisitions.
  • 6. Building One Growth-Driven Company l 6 3-4% Price Increase Expected in 2016 After 6 Years of AUP Declines! * For comparison purposes Base NEO excludes the impacts from the Path Logic (completed 7/8/14) and Clarient acquisition (completed 12//3015). (1) Productivity calculated as the average number of lab tests completed per month per laboratory FTE. 45.9% 44.7% 44.8% 47.7% 48.0% 46.5% -36.2% 54.0% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 35% 40% 45% 50% 55% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Gross Margin % Cum Change in Avg Rev/Test Since 2009 Cum Change in Productivity Since 2009 (1) CumChangeinAvgRev/Test&Productivity GrossMargin Historically, Steady Margins Despite Lower Avg Unit Prices – Base NEO*
  • 7. Building One Growth-Driven Company l 7 Customer Targets Pathologists & Hospital Pathology Groups (about 81% of 2015 Revenue*) • Enable community Pathologists to practice using sophisticated tools and tests • Innovative technical component (TC or “tech-only”) services – Flow, FISH, IHC • Outstanding Web-based Lab System & extensive training programs Oncologists & Clinician Groups (about 15% of 2015 Revenue*) • Includes Hematologists, Oncologists, Dermatologists, Urologists • Disease Panels and comprehensive molecular menus • Increasing Opportunity to service larger practices with Tech-only model Clinical Trials & Other (about 4% of 2015 Revenue*) • Contract research/clinical trial support work for Pharma clients * Percentages are for Base NEO only and exclude the impacts from the Path Logic acquisition (completed 7/8/14) and Clarient acquisition (completed 12//3015).
  • 8. Building One Growth-Driven Company l 8 Rapidly Growing Market Opportunity The exploding cost of cancer care offers extraordinary opportunities for those labs that can deliver innovative and value-based solutions to the healthcare system. Source: National Institutes of Health (NIH)
  • 9. Building One Growth-Driven Company l 9 Accelerating Pace of Innovation • 70 new/revised tests, incl: NeoLABTM Liquid Biopsies • MDS/CMML Profile • AML Profile • FLT3 Mutation Analysis • NPM1 Mutation Analysis • PML-RARA Translocation • RUNX1-RNX1T1Transloc • INV16 Translocation • c-kit Mutation Analysis • IDH1 Mutation Analysis • IDH2 Mutation Analysis • NRAS Mutation Analysis • KRAS Mutation Analysis • BTK Inhibitor Resistance • Solid Tumor Monitoring Germline MolDx Testing • BRCA1 & BRCA2 • Lynch Syndrome (colon) • 73 Gene Comprehensive Predisposition Panel Other • ALK, ROS1, RET Fusion • Sarcoma gene Fusion • NeoSITE Cervical FISH • Expanded IHC Menu • Smart Flow Cytometry • 10-color Flow Cytometry • Implemented Adv MolDx platform in lieu of Kits • 28 new Molecular Assays • Proprietary method for increasing sensitivity of Sanger sequencing • 7 NeoTYPE MolDx Panels • SVM for FISH (Patent App) • Barrett’s Esoph. FISH (Patent App) • NeoARRAY/SNP Cytogenetics • Internalized send-outs • 40 new Molecular tests • Add’l NeoTYPE Panels • Next Generation Sequencing (48 genes) • ROS1 FISH • NeoSITE Melanoma FISH • Plasma/Urine-based Prostate Test (Patent App) • SVM-based Cytogenetics Analysis System • SVM-based Automated FISH Analysis System v2 • Began development of NeoLAB (Liquid Alternative to Biopsy) Prostate Cx test 2015 2012 2013 • 60 new/revised MolDx tests • 24 new NeoTYPE Next Generation Sequencing Profiles • 26 new IHC/ISH tests • Additional NeoLAB Prostate clinical studies • AML Extended FISH Panel • AML Favorable-Risk FISH Panel • MDS Extended FISH Panel • Plasma Cell Myeloma Risk Stratification FISH Panel • RET FISH • MET FISH • ALL Adult & Pediatric FISH Panels • HER2 Breast Equivocal FISH Panel • BRAF Translocation FISH • Chromosome 1 POC Ploidy • Launched robotic FISH-Cyto processing platform 2014
  • 10. Building One Growth-Driven Company l 10 Accelerating Same Store Sales* * Base NEO represents organic revenue and test volume growth from legacy business and excludes the impacts from the PathLogic and Clarient acquisitions. -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Year-Over-Year Total % of Test Volume Growth Same Store Year-over-year Growth w/o FCS FCS Year-over-Year Growth Other Year-over-Year Growth
  • 11. Building One Growth-Driven Company l 11 Strategic Rationale of Clarient Acquisition 1. Lab scale allows opportunity to be the low-cost provider in each key laboratory discipline. 2. Better balance of clinical products and payors to reduce concentration risk. 3. Significantly enhanced Clinical Trials capability. 4. Create greater economies of scale in IT, Regulatory, Billing, Compliance, etc. 5. Leverages and optimizes the Sales and Marketing function across a broader revenue base with more diverse geographic coverage. 6. Leverages innovation & product development across broader client base. 7. Greater ability to serve Managed Care and large buyers in a significant way. 8. Better “one-stop-shop” capability and services to existing and new clients.
  • 12. Building One Growth-Driven Company l 12 Confidential New NextGen Digital Companion Pathology Dx Oncology Technologies: FISH Clinical Trials Flow Cytogenetics Traditional Old Anatomic Path. Low Market High Growth 12 Consistent with NEO’s Acquisition Strategy NEO Focus – Upper right hand quadrant Synergistic Deals High HighLow Market Growth Technologies Clarient Attributes  Technology leader  High growth (clinical trials)  Revenue scale  Nationwide presence  Complementary footprint  Geographic proximity  Ongoing GE affiliation
  • 13. Building One Growth-Driven Company l 13 Key Benefits • Synergy potential of $20mm - $30mm/year within 3-5 year – Laboratory, Purchasing, Cross-selling, etc. • East Coast/West Coast labs – Combine Irvine and Aliso Viejo • Low cost position in every testing discipline – FISH, Flow, Cytogenetics, IHC, Digital Pathology, Molecular • Leadership in hematological and solid tumor cancers – One-stop-shop for clients with broad geographical coverage • Potential to be a leading consolidator going forward • GE as significant long-term Investor – Collaboration in Bioinformatics in Precision Oncology • Significant clinical trials business – Combined business approximates $25mm revenue
  • 14. Building One Growth-Driven Company l 14 Growth – Expanded Geographic Coverage NEO Field Sales Representation (27) Clarient Field Sales Representation (27) Does Not Include Sales Management or Managed Care
  • 15. Building One Growth-Driven Company l 15 Organic Growth through Market Demand Core Growth 5 – 10% Demographic Changes Market Share Gains Innovation Driven Growth 5 – 10% Constant Test Development Liquid Biopsies “plasma tests” “Smart Medicine” BioPharma Growth 15 -20% Clinical Trials Companion Dx We have very real opportunity to grow volumes 10-20% annually in each of our clinical and biopharma businesses for a long time…
  • 16. Building One Growth-Driven Company l 16 Recent Financial Information (Dollars in Millions) Clarient NeoGenomics Comined 2015 2015 2015 Pro Forma Audited Pro Forma Revenue 116.8$ 99.8$ 216.6$ Estimated Revenue using Neo Policie 125.0 (1) 99.8 224.8 EBITDA* 5.7 (2) 9.7 15.4 Pro Forma Adjusted EBITDA 9.2 (3) 9.7 18.9 (1) 2015 Revenue using NEO's Policies adds back 7% of net revenue for bad debt and moves this charge to G&A. (2) 2015 EBITDA excludes a $47.6 MM impairment charge to reduce the value of intangibles. (3) Pro Forma Adjusted EBITDA includes adjustments to reflect the business being acquired.
  • 17. Building One Growth-Driven Company l 17 Confidential Implied Valuation & Revenue Multiple ($ and shares in milllions) Shares Issued Transaction Consideration Cash $80.0 FMV of Common Stock at Issue 15.0 $102.5 (1) FMV of Preferred Stock at Issue 14.7 $73.2 (2) Transaction Enterprise Value (3) $255.7 Clarient Revenue 2015 ProForma Revenue $116.8 2015 ProForma Revenue - NEO Method (4) $125.0 Transaction Value/ LTM Revenue 2015 ProForma Revenue 2.19 x 2015 ProForma Revenue - NEO Method (4) 2.05 x (1) GAAP fair market value accounting required a 15% illiquidity discount be placed on the shares issued at Close. (2) A Monte Carlo Simulation was utilized to determine the FMV of the Preferreed Stock as of the Closing Date. (3) Transaction contemplated a debt-free & cash free closing with customary post closing adjustments for working capital. (4) Historically Clarient has recorded bad debt in Net Revenue, whereas NeoGenomics has recorded bad debt in G&A. Thus, we have made a pro forma adjustment to put Clarient's revenue on a similar basis to NEO's revenue.
  • 18. Building One Growth-Driven Company l 18 Confidential 2016 - Combined Pro Forma Revenue Bridge(1) (1) Preliminary Estimate - Subject to further refinements after close We estimate combined revenue of approx. $240 – $250 mm in 2016…  CMS Reimbursement estimates includes net positive price adjustments of $4-5 mm for NEO and $3-4 MM for Clarient. We estimate Revenue Distractions of approximately $6 million relating to sales pipeline reductions.  Clarient revenue includes estimated Bad Debt rate for Clarient, previously included in net Revenue $0 $50 $100 $150 $200 $250 $300 Neo Clarient* CMS Fees Distractions New Neo $118mm $125mm ($6mm) $8mm $245mm
  • 19. Building One Growth-Driven Company l 19 Confidential 19 2016 Pro Forma Adjusted EBITDA Bridge (1)  NEO expects to realize significant EBITDA growth and cost synergies in 2016 and beyond as a result of efficiencies gained through the combination with Clarient – The 2016 PF Adjusted EBITDA bridge conservatively estimates a $3mm reduction to Adjusted EBITDA as a result of revenue distractions expected during the integration (1) Preliminary Estimate – Subject to further refinements $0 $5 $10 $15 $20 $25 $30 $35 $40 Neo Clarient CMS Fees Synergies Distraction New Neo $15mm $9 mm $8 mm $6mm ($3mm) $35mm We estimate combined Adj. EBITDA of approx. $33 – $38 mm in 2016…
  • 20. Building One Growth-Driven Company l 20 Current 2016 Guidance • Revenue: $240 - $250 MM • Adjusted EBITDA 33 - 38 MM • Adjusted Net Income* 7 - 12 MM • Adjusted Diluted EPS* $0.07 - $0.12 * Adjusted Net Income in a non-GAAP measure which in defined by NeoGenomics as Net Income Available to Common Stock plus (a) amortization of customer lists and other intangibles, (b) non-cash, stock-based compensation, (c) non-recurring (income) or expense, (d) acquisition related transaction expenses, (e) deemed dividends on preferred stock, and (f) amortization of preferred stock beneficial conversion feature. Adjusted Diluted EPS assumes all preferred stock is converted into common shares. NeoGenomics believes that Adjusted Net Income and Adjusted Diluted EPS provide a more consistent measurement of operating performance and trends across reporting periods by excluding those cash and non-cash items of income and expense not directly related to the ongoing operation from GAAP Income Available to Common Stock.
  • 21. Building One Growth-Driven Company l 21 NeoGenomics Vision and Goals Leadership Goals: • Be the leading oncology-focused testing and information company in the World. • Innovate aggressively to advance precision medicine. • Be the highest quality and lowest cost provider in each product area Competencies: • Outstanding Scientific, Medical and Informatics expertise. • Partnerships for efficiency/effectiveness across health-care care continuum • Disciplined process management and quality systems. • Entrepreneurial, values-driven culture. Financial Performance Goals: • Consistent and sustainable double-digit revenue growth. • Clinical Trials > 15% of revenue. • Adjusted EBITDA margin of 20-25% when annual revenue >$300 MM.
  • 22. Building One Growth-Driven Company l 22 Appendix 20
  • 23. Building One Growth-Driven Company l 23 Reimbursement is Finally Expected to Increase in 2016 Implied CY 2016 Physician Fee Schedule Rates Based on Inputs from CMS Final Rule CMS-1631-FC (Issued 10/30/15) CPT Proc Code Procedure Description National Unadj Rate 2014 National Unadj Rate 2015 Prelim Rule - Implied National Unadj Rate 2016 (Issued July 2015) % Change 2016 Prelim Rule vs 2015 Final Rule - Implied National Unadj Rate 2016 (1) % Change 2016 Final Rule vs Prelim Rule % Change 2016 Final Rule vs 2015 88184 FLOW 1ST MARKER 87.77$ 94.51$ 58.50$ -38.1% 76.31$ 30.4% -19.3% 88185 FLOW EACH ADDL MARKER 53.73$ 57.49$ 17.69$ -69.2% 46.22$ 161.3% -19.6% 88189 FLOW INTERP 16 OR MORE MARKERS 110.69$ 113.91$ 115.19$ 1.1% 114.29$ -0.8% 0.3% 88374 FISH AUTOMATED PER PROBE (Multiplex Probe Stain) 255.77$ 205.54$ 350.62$ 70.6% 346.10$ -1.3% 68.4% 88374-TC FISH AUTOMATED PER PROBE TECH (Multiplex Probe Stain) 193.08$ 160.26$ 304.40$ 89.9% 299.88$ -1.5% 87.1% 88374-26 FISH AUTOMATED PER PROBE INTERP (Multiplex Probe Stain) 62.69$ 45.28$ 46.22$ 2.1% 46.22$ 0.0% 2.1% 88121 FISH AUTOMATED - UROVYSION 508.30$ 556.97$ 566.92$ 1.8% 558.20$ -1.5% 0.2% 88121-TC FISH AUTOMATED - UROVYSION 459.99$ 505.23$ 514.56$ 1.8% 506.25$ -1.6% 0.2% 88121-26 FISH AUTOMATED - UROVYSION 48.31$ 51.74$ 52.36$ 1.2% 51.95$ -0.8% 0.4% Uses G0461 in 2014 88342 IMMUNOHISTOCHEMISTRY (1st Stain) 88.48$ 90.91$ 108.69$ 19.6% 107.48$ -1.1% 18.2% 88342 - TC IMMUNOHISTOCHEMISTRY TECH (1st Stain) 57.67$ 54.26$ 71.14$ 31.1% 70.22$ -1.3% 29.4% 88342 - PC IMMUNOHISTOCHEMISTRY INTERP (1st Stain) 30.81$ 36.65$ 37.55$ 2.5% 37.26$ -0.8% 1.7% Uses G0462 in 2014 88341 IMMUNOHISTOCHEMISTRY (Add'l Stain) 68.42$ 67.91$ 91.72$ 35.1% 90.64$ -1.2% 33.5% 88341 - TC IMMUNOHISTOCHEMISTRY TECH (Add'l Stain) 55.88$ 45.99$ 63.55$ 38.2% 62.70$ -1.3% 36.3% 88341 - PC IMMUNOHISTOCHEMISTRY INTERP (Add'l Stain) 12.54$ 21.92$ 28.17$ 28.5% 27.95$ -0.8% 27.5% Uses G0461 in 2014 88344 IMMUNOHISTOCHEMISTRY (each Multiplex Stain) 88.48$ 117.50$ 176.58$ 50.3% 173.77$ -1.6% 47.9% 88344 - TC IMMUNOHISTOCHEMISTRY TECH (each Multiplex Stain) 57.67$ 77.26$ 135.41$ 75.3% 132.92$ -1.8% 72.0% 88344 - PC IMMUNOHISTOCHEMISTRY INTERP (each Multiplex Stain) 30.81$ 40.25$ 41.16$ 2.3% 40.84$ -0.8% 1.5% 88361 MORPHOLOGY, EACH ANTIBODY - AUTOMATED 157.98$ 170.32$ 122.77$ -27.9% 149.40$ 21.7% -12.3% 88361-TC MORPHOLOGY TECH, EACH ANTIBODY - AUTOMATED 98.51$ 109.96$ 65.72$ -40.2% 88.49$ 34.6% -19.5% 88361-26 MORPHOLOGY INTERP, EA ANTIBODY - AUTOMATED 59.47$ 60.37$ 57.05$ -5.5% 60.91$ 6.8% 0.9% (1) Assumes no other Physician Fee Schedule (PFS) rule changes or limited coverage determinations are implemented for 2016.
  • 24. Building One Growth-Driven Company l 24 Confidential  Core business focused on IHC, Flow, FISH, Cytogenetics and Molecular tests  National reach with focus on both independent and hospital pathologists  Consistently strong growth - early development to late stage testing  ~ 200 projects in process for >30 customers Clarient Overview 24  IHC/Digital Pathology: Large and Industry leading capabilities  FISH/ISH: Similar Instrumentation and capabilities  FLOW: Similar instrumentation and capabilities  Molecular: Smaller menu  Cytogenetics: Similiar capabilities Facilities/Infrastructure Customer Mix Product Lines (1)  78,000 sq. ft. Lab located in Aliso Viejo, CA  Available Capacity due to efficient workflow and processes.  Uses similar equipment and Instrumentation.  Uses similar IT Labs Systems and database structure  24,000 sq. ft. facility located in Houston, TX IHC 42% FISH/ISH 19% FLOW 14% Molecular 15% Cyto 5% Other 5% (1) Clinical operations only. Percentage of tests Performed. CLINICAL CUSTOMERS BIOPHARMA CUSTOMERS and Other
  • 25. Building One Growth-Driven Company l 25 Confidential Clarient Test Volume and Average Unit Price Revenue by Customer Type: Tests 2013 2014 2015 PF 2013 2014 2015 Clinical $111.9 $106.5 $93.8 Clinical Revenue $111.9 $106.5 $93.8 BioPharma 13.8 20.7 23.0 Tests 297.7 284.7 271.3 Total Revenue 125.7 127.2 116.8 AUP (1) $376 $374 $346 Bad Debt Acctng Adj (2) 6.6 6.7 8.2 Bad Debt Acctng Adj (2) 19.8 19.7 26.1 Proforma Rev to NEO $132.3 $133.9 $125.0 Proforma AUP to NEO $396 $394 $372 (1) Average Unit Price is based on revenue from clinical testing (excluding BioPharm tests). (2) Historically, Clarient booked Bad Debt as a reduction to revenue, wheras NEO books it in GA. $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2013 2014 2015 PF BioPharma Clinical 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 2013 2014 2015Est Tests
  • 26. Building One Growth-Driven Company l 26 Confidential Clarient Revenue and Payer Mix in 2014 Payor Mix - 2014 Clinical Only 2014 Payor Mix Client 39.6% Insurance 34.4% Government 12.4% HMO 5.3% Patient/Other 8.3% Total 100.0% Client Insurance Government HMO Patient/Other
  • 27. Building One Growth-Driven Company l 27 Clarient Clinical Trials & BioPharma A rapidly growing part of Clarient’s business and a fantastic opportunity . . . • $23mm/yr. in current business • Strong relationships with several leading Pharmaceutical firms • PDL1 22C3 – FDA Approved companion diagnostic for Keytruda • Continued push into Companion Dx and personalized medicine • Approved vendor with top firms • On several firms advisory boards • Solid pipeline and future growth opportunities
  • 28. Building One Growth-Driven Company l 28 Clarient Transaction Consideration • $80 MM Cash – $15 MM – NEO cash from balance sheet – $10 MM – New, 5-year $25mm revolver – $55 MM – New, 5-year Term Loan • 14.67 MM Shares of Series A Redeemable Preferred Stock – Issued at $7.50 per share – Redeemable by NEO at any time at the issue price plus accrued PIK dividends – Up to $10 MM discount for early redemption (declining discount over 4 years) – GE Ability to convert to common after 3 years if common stock > $8.00 per share for 30 consecutive trading days. – 4% annual PIK dividend begins 1/1/17 and increases after Year 4 by 1% per year to 10% in year 10. – Valued at $73.2 MM for GAAP fair market value on closing date • 15 MM Shares of Common Stock – Valued at $102.5 MM for GAAP fair market value on closing date