In this NeoGenomics Laboratory Company Overview Presentation 02/19/2014, you will find detail information on the following 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 •Strong productivity and operating leverage leading to accelerating cash flow and net income •Strong Management Team with large cap lab experience

1. NASDAQ: NEO
Time Matters. Results Count!
Company Overview Presentation
February 2014
“Improving Patient Care
through exceptional cancer
genetic testing services!”
1

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 forwardlooking statements.
Investors and prospective investors are cautioned that any such forwardlooking 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.
2

3. Investment Highlights
•
Fast growing cancer genetics lab servicing Oncologists,
Pathologists and Hospitals
•
•
•
•
Strategic client partnerships created by “Tech-Only” model
•
Strong Management Team with large cap lab experience
Dynamic, rapidly-growing and consolidating industry
Industry-leading revenue & test volume growth
Strong productivity and operating leverage leading to
accelerating cash flow and net income
3

4. Consistent Historical Growth
Annual Revenue ($, 000s)
Tests Performed
2013
2012
2011
2010
2009
0
2008
$0
2007
20,000
2006
$10,000
2005
40,000
2004
$20,000
2013
60,000
2012
$30,000
2011
80,000
2010
$40,000
2009
100,000
2008
$50,000
2007
120,000
2006
$60,000
2005
140,000
2004
$70,000
4

5. Accelerating Cash Flow & Earnings
($, 000's)
2011
2012
2013
$ 43,484
26.5%
$ 59,867
37.7%
$ 66,467
11.0%
Total Gross Margin
Gross Margin %
19,428
44.7%
26,836
44.8%
31,737
47.7%
Sales & Marketing Exp as a % of Rev
Gen & Admin Exp as a % of Rev
R&D Exp as a % of Rev
SG&A Expenses
Total SG&A as a % of Rev
16.0%
28.4%
1.2%
19,837
45.6%
12.5%
26.5%
3.8%
25,624
42.8%
13.1%
26.2%
3.7%
28,563
43.0%
Total Revenue
% Growth
Adjusted EBITDA
% Growth
$
2,134
NA
$
5,997
181.0%
$ 8,515
42.0%
Net Income/(Loss)
Diluted EPS
$ (1,177)
($0.03)
$
65
$0.00
$ 2,034
$0.02
Summary Operating Metrics
Avg. Revenue/Test
% Change
$
570
-4.9%
$
522
-8.4%
$
484
-7.3%
$
315
-2.7%
$
288
-8.6%
$
253
-12.2%
Avg. Cost of Goods Sold/Test
% Change
5

6. Management Team
•
Douglas VanOort, Chairman & CEO
•
Maher Albitar, M.D., Chief Medical Officer & Director of R&D
•
Robert Gasparini, Director & Chief Scientific Officer
•
Steven Jones, Director, EVP – Finance, & Chief Compliance Officer
•
George Cardoza, Chief Financial Officer
•
Robert Horel, Vice President, Sales & Marketing
•
Steven Ross, Chief Information Officer
Operating Partner, Summer Street Capital Partners;
Chief Operating Officer, Quest Diagnostics
Med. Dir. for Hematopathology & Oncology and Chief of R&D, Quest Nichols Institute;
Director of Leukemia and Molecular Laboratory, MD Anderson Cancer Center
Director of Genetics, U.S. Labs; Worldwide Marketing Mgr., Ventana Medical Systems;
Asst. Director, Prenatal Diagnostic Center (Harvard)
Chairman, Aspen Capital Group; Managing Member, Medical Venture Partners;
Vice President, Merrill Lynch Investment Banking
CFO, Protocol Global Solutions; Controller, Central Region, Quest Diagnostics
Regional Mgr., US Labs; Product Specialist, Ventana Medical Systems; Pilot, U.S. Navy
Vice President Technology, Chico’s FAS, Inc.
6

7. NeoGenomics’ Cancer Testing Services
Key Testing Methodologies
Cytogenetics: chromosome analysis
- “Neighborhood view of 46 houses from 1000 feet”
Flow Cytometry & IHC: cell surface marker analysis
- “Single house view from 500 feet”
Fluorescence in-situ Hybridization (FISH): gene
analysis - “Door and window view of one house”
Molecular testing: DNA/RNA analysis
-“View of serial number on door lock”
7

8. Customer Targets
Pathologists & Hospital Pathology Groups (about 72% of 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 25% of 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 3% of Revenue)
•
Contract research/clinical trial support work for Pharma clients
8

9. NeoGenomics Formula for Success
Industry Dynamics
& Demographics
• Aging U.S. population and
prevalence of cancer
• Diagnostic testing reduces
healthcare costs and improves
clinical outcomes
• Emergence of molecular diagnostics
• Targeted therapeutics and
companion diagnostics
• Capitalize on new healthcare
paradigm
Market Share Gains
• Attract New Customers
– Promote key advantages of
“tech-only” model
– Partner with Clinician Offices
• Grow existing customer base
New Products &
Solutions
• Continue to expand test menu
• Sublicensing of HDC products
– Cytogenetics/Flow/IHC systems
– Prostate/colon/pancreatic Cx Tests
– International opportunities
– Sales force productivity
• Proprietary test development
– Increase share of wallet
• Disruptive technology for select solid
tumor cancers
– Promote product education
– Capitalize on competitor turmoil
• Seek new R&D partnerships
Superior Financial Model
• Sustainable revenue growth opportunity
• Significant degree of operating leverage in
the business model
9

10. Industry Dynamics
–
Molecular diagnostics enable physicians to better
diagnose diseases and predict therapeutic efficacy
•
–
Clinical Benefits: Effective treatment at an early stage
increases patient survival rates
•
Healthcare Savings: a) forego spending on ineffective
therapies and b) effective intervention at an early stage
generally lowers overall treatment cost
Need for companion diagnostics being driven by rising
drug costs and an increase in targeted therapeutics
•
•
Xalkori® (Crizotinib) - Cost of ~$90,000 annually to treat
non-small cell lung cancer. 50 – 61% effective for the ~3%
of the population with certain genetic characteristics
U.S. Population Demographics
Diagnostic testing can significantly lower
healthcare costs and improve clinical outcomes
–
•
Boomer Impact on Cancer Market
Molecular diagnostics transforming lab services
industry and fueling rapid growth
Diagnostics represents only 2-3% of total healthcare
spend but influence approximately 70% - 80% of
physician decisions
Cancer prevalence expected to increase as U.S.
population ages
–
77% of all cancers diagnosed are in people age 55 or
older, the fastest growing segment of the US
30%
Current
25%
Percent Of Population
•
20%
20%
20%
2030
2040
2050
22%
16%
17%
18%
16%
15%
10%
26%
19%
25%
25%
16%
11%
13%
12%
13%
1990
2000
2010
5%
0%
1980
Age 60 and older
2020
Age 65 and older
10

11. U.S. Cancer Testing Market Size $10-12 Billion
Hematopoietic Cancers
Solid Tumor Cancers
$3 - 4 Billion
$7 - 8 Billion
~$2 - 3 Billion
~$2 - 3 Billion
Patients in Treatment:
850,000
7.0 million
New Diagnoses/Yr.:
150,000
1.45 million
Bone Marrow (350K/Yr)
Per. Blood (150K/Yr)
Lymph Nodes
Tiss. Biopsies (8-10MM)
Fine Needle Aspirates
Other Bodily Fluids
~80%
~20%
Total Testing Market:
Est. Genetic Mkt. (TAM)
Specimen Types:
Neo Revenue Split:
11

12. Cancer Testing Market Characteristics
• Cancer Genetics is high growth segment of lab Industry
- ~15-20% annual test volume growth in genetics testing
- ~6-8% annual test volume growth in related AP testing
• Less than 400 Cancer Genetic Labs in the U.S.
- 2/3 affiliated with academic institutions
- Approximately 20% perform 80% of testing
- Only 15-20 labs with national reach
• High pace of consolidation - Recent examples include:
Target
Caris Diagnostics
Genoptix
Clarient
Genzyme Genetics
Acquiror
Miraca
Novartis
GE Healthcare Svcs
LabCorp
TV/LTM Rev
3.5x
1.7x
5.8x
2.5x
12

13. A Growing Commercial & Facility Footprint
VT
WA
ME
MT
ND
MI
NH
MN
OR
ID
NY
SD
WI
MI
WY
IA
NE
IL
CO
CA
KS
IN
MO
WV
AZ
KY
SC
AR
NM
MS
TX
CT
VA
NC
OK
RI
NJ
DE
MD
OH
NV
UT
PA
MA
AL
GA
LA
Irvine, CA
18k sf
FL
States sending specimens in 2013
Nashville, TN
7k sf
Tampa, FL
5k sf
Ft. Myers, FL
45k sf
13

14. Accelerating Pace of Innovation
2011
4 molecular
tests
2012
2013
10-color Flow Cytometry
40 new Molecular tests
Add’l NeoTYPE Panels
3 FISH
Implemented State-of-the-art
MolDx platform in lieu of Kits
28 new Molecular Assays
ROS1 FISH
FL – IHC menu
Proprietary method for increasing
sensitivity of Sanger sequencing
7 NeoTYPE MolDx Panels
Plasma/Urine-based
Prostate Test (Patent App)
New Aperio Digital Image Analysis
SVM for FISH (Patent App)
Barrett’s Esoph. FISH (Patent App)
NeoARRAY/SNP Cytogenetics
Internalized 99% of send-outs
Next Generation
Sequencing (48 genes)
NeoSITE Melanoma FISH
SVM-based Cytogenetics
Analysis System
SVM-based Automated
FISH Analysis System v2
14

15. More than 80 New Assays Launched in 2012 & 2013
Solid Tumor Assays*
Molecular Assays:
1.
IDH1 & IDH2 Mutation Analysis
2.
c-KIT Mutation Analysis
3.
PIK3CA Mutation Analysis
4.
NRAS Mutation Analysis
5.
TP53 Mutation Analysis
6.
NeoARRAY SNP/Cytogenetic Profile
7.
KRAS Mutation Analysis
8.
BRAF Mutation Analysis
9.
EGFR Mutation Analysis
10.
Microsatellite Instability Analysis
11.
NeoTYPE Breast Profile
12.
NeoTYPE Colorectal Profile
13.
NeoTYPE Gastric Profile
14.
NeoTYPE Lung Profile
15.
NeoTYPE Solid Tumor (Other) Profile
16.
TPMT Genotyping
17.
UGT1A1 Genotyping
18.
Kit/PDGFRa Mutation Analysis
19.
HRAS Mutation Analysis
20.
PTEN Mutation Analysis
21.
HOXB13 Genotyping
22.
GNAS Mutation Analysis
23.
MLH1 Promoter Methylation Analysis
24.
MGMT Promoter Methylation Analysis
FISH/ISH Assays:
1.
ISH – Kappa ISH
2.
ISH – Lambda ISH
3.
NeoSITE Barrett’s Esophagus FISH
4.
ROS1 FISH
5.
NeoSITE Melanoma FISH
6.
1p/19q Deletion FISH Test
Hematopoietic Assays*
Molecular Assays:
1.
BCR-ABL1 Translocation, t(9;22)
2.
ABL1 Kinase Domain Mutation Anal
3.
IgVH Mutation Analysis
4.
FLT3 Mutation Analysis
5.
NPM1 Mutation Analysis
6.
JAK2 V617F Mutation Analysis
7.
JAK2 Exon 12-14 Mutation Anal
8.
BCL2 Translocation, t(14;18)
9.
BCL1 Translocation, t(11;14)
10.
MPL Mutation Analysis
11.
MPN Reflex Panel
12.
DNMT3A Mutation Analysis
13.
RUNX1-RUNX1T1 (AML1-ETO)
Translocation, t(8;21)
14.
SF3B1 Mutation Analysis
15.
B-Cell Gene Rearrangement
16.
T-Cell Gene Rearrangement
17.
CBFB/MYH11 Translocation, inv(16)
18.
PML-RARA Translocation, t(15;17)
19.
CEBPA Mutation Analysis
20.
WT1 Mutation Analysis
21.
NeoTYPE CLL Prognostic Profile
22.
NeoTYPE AML Prognostic Profile
23.
ETV6-RUNX1 (TEL-AML1)
Translocation, t(12;21)
24.
CARD11 Mutation Analysis
25.
CD79B Mutation Analysis
26.
MYD88 Mutation Analysis
27.
RUNX1 Mutation Analysis
31.
NOTCH1 Mutation Analysis
32.
EZH2 Mutation Analysis
33.
Chimerism/DNA Fingerprinting
Analysis
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
TET2 Mutation Analysis
CBL Mutation Analysis
ASXL1 Mutation Analysis
PTPN11 Mutation Analysis
CSF3R Mutation Analysis
PTPN11 Mutation Analysis
STAT3 Mutation Analysis
ETV6 Mutation Analysis
NeoTYPE Lymphoma Profile
NeoTYPE MDS/CMML Profile
NeoTYPE Spliceosome Profile
FISH/ISH Assays:
1.
NHL FISH Panel (Revised)
2.
MYC/IgH t(8;14)
3.
CLL FISH Panel (Revised)
4.
MDS FISH Panel (Revised)
5.
MPN FISH Panel (Revised)
6.
AML FISH Panel (Revised)
7.
Eosinophilia FISH Panel
8.
IGH/MAFB FISH
9.
PTEN FISH
BOLD = Multi-assay tests customizable
to meet client needs (assays may also be
ordered individually).
* Certain assays may be useful in both solid
tumor and hematopoietic cancers. Each
assay listed in area of primary use.
15

16. Key Growth Drivers Over the Next 3 Years
• Expansion of Sales Team with seasoned Professionals
• Growth of molecular assays, panels and Next Gen Sequencing
• Recent expansion in FISH and advanced flow cytometry
• New Image Analysis/Immunohistochemistry Platform
• Exclusive strategic alliance with Covance for Clinical Trials
• Proprietary NeoSCORE Prostate Cancer and other proprietary tests
• M&A Opportunities
16

17. Increasing Margins Despite Lower Average Unit Prices
100%
56.5%
60%
90%
50%
80%
40%
70%
30%
60%
20%
50%
47.1% 47.2%
47.3%48.4% 46.1%
46.3% 45.9% 48.4%
44.8% 45.2%
43.2%
44.5%
44.6% 43.9%
44.7%
41.5%
50.0%
10%
40%
0%
30%
-10%
20%
-20%
Gross Margin %
Cum Change in Avg Rev/Test(2)
Q3 13
Q2 13
Q1 13
Q4 12
Q3 12
Q2 12
Q1 12
Q4 11
Q3 11
Q2 11
Q1 11
Q4 10
Q3 10
Q2 10
Q1 10
Q4 09
0%
Q4 13
-23.4%
10%
-30%
-40%
Cum Change in Productivity(1)
(1) Productivity calculated as the average number of lab tests completed per month per laboratory FTE.
(2) The expiration of the Medicare Technical Component (TC) Grandfather Clause took effect on 7/1/12 and resulted in an ~11% YoY Reduction in Avg Rev/Test.
17

18. Cost Management & Operating Leverage
Operating Cost per Test & Adj. EBITDA Margin
$800
20%
$723
$700
$642 $642
$671
$649
15%
$618
$576 $565
$600
$500
5%
$400
$300
-1%
$200
0%
-2%
6%
12%
$555
8%
12%
$531 $512 $526
6%
10% 11%
12%
13%
$482 $478
$464 $466 $439
10%
5%
0%
-1%
-5%
-5%
-10%
$100
$0
15%
-12%
-15%
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413
Cogs Cost/Test
R&D Cost/Test
G&A Net of R&D Cost/Test
Total Cost/Test
S&M Cost/Test
Adj EBITDA Margin %
18

19. Quarterly Financial Information
($, 000's)
Q4 12 *
Q1 13 *
Q2 13 *
Q3 13
Q4 13
Total Revenue
% Growth (YoY)
$ 14,893
15.5%
$ 15,657
3.3%
$ 15,603
-0.1%
$ 16,884
18.9%
$ 18,323
23.0%
Total Gross Margin
Gross Margin %
6,434
43.2%
7,246
46.3%
7,157
45.9%
8,171
48.4%
9,163
50.0%
Sales & Marketing Exp
General & Administrative Exp
Research & Development Exp
1,692
4,097
448
1,931
4,175
835
1,971
4,064
616
2,336
4,334
340
2,487
4,823
649
6,237
41.9%
6,942
44.3%
6,651
42.6%
7,011
41.5%
7,959
43.4%
Total SG&A (Incl R&D) Expenses
SG&A as a % of Rev
Net Income/(Loss)
Diluted EPS
$
(113)
($0.00)
Adjusted EBITDA
$ 1,439
$ 1,794
$ 1,825
$ 2,163
$ 2,733
Summary Operating Data
% Growth in Tests Performed (YoY)
Avg. Revenue/Test
Avg. COGS/Test
35.3%
$ 488
$ 277
19.1%
488
$
$
262
12.7%
$ 480
$ 260
19.1%
$ 501
$ 258
27.8%
$ 470
$ 235
$
3
$0.00
$
273
$0.01
$
900
$0.02
$
858
$0.02
* YoY comparisons impacted by a reduction in revenue of $1.3 MM/Qtr as a result of the expiration of the TC Grandfather Clause.
19

20. Key Financial Information
Recent Share Price (2/18/14):
$ 3.86
Common Shares Outstanding:
49.1 M
Current Market Cap:
$189.0 M
Fully Diluted Shares:
55.8 M
52 Week Low/High:
$2.05/$4.69
Avg. Daily Trading Volume (3 Mos):
279,682
20

21. NeoGenomics Summary
•
•
•
•
•
Emerging leader in fastest-growing segment of lab testing industry
Robust competitive advantages and product portfolio
Strong Management Team with outstanding industry experience
Accelerating profitability driven by growth and operating leverage
Recent Guidance(1):
Q1 2014(2)
FY 2014(2)
Revenue ($, MMs)
$18.8 - $19.3
$73.0 - $77.0
EPS
$0.01 – $0.02
$0.05 - $0.07
(1) Guidance is before factoring any potential impacts from a negative resolution of the issues re the National Correct Coding Initiative FISH edits.
See 8-K filed on 2/19/2014 for additional information on this topic.
(2) NeoGenomics preliminarily estimates that a negative resolution of the NCCI FISH edits issue would reduce revenue by approximately $3 million
and net income by approximately $0.04 per share in FY 2014, with the impact more heavily concentrated in the first half of the year. Q1 revenue
and EPS would be reduced by approximately $1.0 million and $0.02/share in the event of a negative resolution.
21

22. Implied 2014 Physician Fee Schedule Rates
Based on our 24% Medicare payer mix through the first 9 months of 2013, we expect
the Medicare 2014 PFS Rates to have less than a 3% impact to total revenue (1).
CPT Proc Code Procedure Description
National
National
National
Unadj Rate Unadj Rate Unadj Rate
2013
2011
2012
88184
88185
88189
FLOW 1ST MARKER
$
$
$
83.92 $
50.29 $
103.29 $
82.71 $
50.04 $
102.45 $
88.80
54.10
106.49
$
$
$
87.77
53.73
110.69
-1.2%
-0.7%
3.9%
88367
88367-TC
88367-26
FISH AUTOMATED PER PROBE
$
$
$
256.18 $
195.36 $
60.82 $
264.13 $
203.89 $
60.25 $
258.23
198.35
59.88
$
$
$
255.77
193.08
62.69
-1.0%
-2.7%
4.7%
88368
88368-TC
88368-26
FISH MANUAL PER PROBE
$
$
$
219.83 $
157.65 $
62.18 $
221.24 $
159.98 $
61.27 $
232.04
170.46
61.58
$
$
$
232.49
167.65
64.84
0.2%
-1.6%
5.3%
88360
88360-TC
88360-26
MORPHOLOGY, EACH ANTIBODY MANUAL
$
$
$
123.33 $
71.01 $
52.32 $
120.49 $
69.44 $
51.06 $
127.25
74.85
52.40
$
$
$
130.04
75.23
54.81
2.2%
0.5%
4.6%
88342
88342-TC
88342-26
IMMUNOHISTOCHEMISTRY
$
$
$
103.92 $
62.86 $
41.11 $
105.52 $
64.67 $
40.85 $
115.34
73.15
42.19
G0461
GO461-TC
G0461-26
IMMUNOHISTOCHEMISTRY (1st Stain)
$
$
$
103.92 $
62.86 $
41.11 $
105.52 $
64.67 $
40.85 $
115.34
73.15
42.19
$
$
$
88.48
57.67
30.81
-23.3%
-21.2%
-27.0%
G0462
GO462-TC
G0462-26
IMMUNOHISTOCHEMISTRY (Add'l Stain)
$
$
$
103.92 $
62.86 $
41.11 $
105.52 $
64.67 $
40.85 $
115.34
73.15
42.19
$
$
$
68.42
55.88
12.54
-40.7%
-23.6%
-70.3%
FLOW EACH ADDL MARKER
FLOW INTERP 16 OR MORE MARKERS
FISH AUTOMATED PER PROBE TECH
FISH AUTOMATED PER PROBE INTERP
FISH MANUAL PER PROBE TECH
FISH MANUAL PER PROBE INTERP
MORPHOLOGY TECH, EACH ANTIBODY MANUAL
MORPHOLOGY INTERP, EA ANTIBODY MANUAL
IMMUNOHISTOCHEMISTRY TECH
IMMUNOHISTOCHEMISTRY INTERP
IMMUNOHISTOCHEMISTRY TECH (1st Stain)
IMMUNOHISTOCHEMISTRY INTERP (1st Stain)
IMMUNOHISTOCHEMISTRY TECH (Add'l Stain)
IMMUNOHISTOCHEMISTRY INTERP (Add'l Stain)
2014 w/
2014 vs
Interim SGR 2013 %
Fix (1)(2)
change
(1) Assumes no other Physician Fee Schedule (PFS) rule changes or limited coverage determinations for 2014.
(2) Calculated using a 2014 CMS Conversion Rate of 35.8228 as enacted in the 'Pathway for SGR Reform Act of 2013’ on December 26, 2013.
This SGR Fix is only in effect to 3/31/14 unless extended further by Congress.
22