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Neogenomics Inc. Message Board

  • avramj98 avramj98 Aug 3, 2013 1:03 PM Flag

    Investing here is now about management.

    While the above statement has always been true to some degree for me, it is now almost the entire story. I listened carefully to the CC and have tried to figure what the reimbursement reductions that have and are threatened will mean to this co. Mgmt continues to grow the entire product line and continues to show effective recruiting (latest sales staff) and increasing efficiencies, but there has been absolutely NO traction in the research CRO business, and to hear them say that this remains a potential for growth is, IMO, just a little more fluff than I want to hear. This is definitely now a story of a co. attempting to grow in the face of a stiff headwind.

    Just glad I don't need the money tomorrow.

    best,

    aj

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    • I wonder if NEO will try to leverage the SVM technology they licensed from HDVY to get some more advanced diagnostics out there? Even ones that aren't covered by Medicare and have to pay cash for?

    • Good point AJ ... What chances one of these big labs interested in acquiring NEO?

      • 1 Reply to amerelhaija
      • There's always an interest in gobbling up the small fish by the giants. Don't forget that ABT/ABBV owns 10% of NEO and there has been a steady move for the cancer focused big drug makers to have a hand in this business because advanced genetics testing leads to individualized treatment(s) and avoids wasted treatment with ineffective drugs. NEO's development of the NextGen diagnostics is tracking the lead in this area, but is looking a little behind the leader, Foundation Medicine. Foundation just filed for an $86 million IPO and admits that they are too far ahead of the curve with their technology, so have few of their tests reimbursable. It doesn't stop them from charging cash ($7,000) for their individualized cancer diagnostics. Time will tell whether or not NEO will follow suit, come up with their own strategy, or take another path. I will say that among the reductions in reimbursement that CMS is proposing, the advanced ca diagnostics (the part of our business that is growing the fastest) will be the least hit, while the standard FISH/Flow Cytometry will get hit the hardest.

        Best,

        aj

 
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