Daniel Brennan's questions to Neogenomics Inc (NEO) leadership • Q1 2025
Question
Daniel Brennan of TD Cowen asked for clarification on the pharma business headwinds and the full-year guidance, including visibility for the rest of the year. He also questioned the Pathline acquisition's contribution to the Q2 guide versus the core business and any potential headwinds for Q2 clinical numbers.
Answer
CFO Jeff Sherman clarified that the pharma business is expected to see a decline similar to the previous year, around $7 million, which will be offset by clinical revenue growth. He explained the updated guidance reflects the Pathline acquisition, which is expected to contribute $3-4 million in Q2. Sherman noted that Q2 presents a tougher year-over-year comparison, similar to Q1, and that integrating the new acquisition will take time to ramp up.