Lauren

Lauren asked about the expected progression of Revio pull-through as Spark chemistry lowers per-sample costs, whether this will drive higher utilization or pull revenue forward. She also inquired about the structural sustainability of consumable growth and the anticipated steady-state mix between Vega and Revio, and its implications for average system ASPs.

Answer

Christian Henry, President and Chief Executive Officer, explained that SparkNex is expected to lower per-sample costs, increase utilization, and expand market share, with pull-through remaining in the $225K-$250K range. He noted that the market is expanding due to HiFi technology and competitive economics, driving growth for both Revio and Vega, which target different market segments. A third, higher-throughput system is also planned.

Lauren inquired about the expected timeline for rebounding growth in the pharma and non-clinical segments (likely 2027), the evolving adoption of RaDaR in pharma partnerships versus the clinical setting, and the specific investments and initiatives reinforcing NeoGenomics' "partner of choice" position for community oncologists.

Answer

COO Warren Stone confirmed expectations for MRD revenue in the pharma space in 2026, which could offset other headwinds. He detailed "partner of choice" initiatives, including a relevant portfolio (PanTracer family, c-MET, claudin18, comprehensive MRD suite), bi-directional interfaces, and a best-in-class customer experience to remove friction for community oncology practices. CFO Jeff Sherman noted that historically, RaDaR Pharma revenue reached $6M-$7M annually after a couple of years, indicating a ramp-up for re-engagement.

Lauren inquired about how Radar adoption is evolving in pharma partnerships versus the clinical setting, particularly in the context of rebounding growth in the pharma and non-clinical segments. She also asked about specific investments or initiatives reinforcing NeoGenomics' position as a 'partner of choice' for community oncologists.

Answer

COO Warren Stone stated that MRD revenue is expected from the pharma space in 2026, which will help address headwinds. He explained that the 'partner of choice' position is reinforced by a relevant portfolio (PanTracer, CMET, Claudin 18, and a comprehensive MRD suite), bi-directional interfaces, and a focus on client customer experience to remove friction for practices. CFO Jeff Sherman added that historically, Radar Pharma generated $6-7 million annually after a couple of years, indicating a ramp-up period for re-engagement in the market.

Lauren asked about the discounting on Chromium instruments, questioning if this strategy would continue and how pricing is expected to evolve.

Answer

CEO Serge Saxonov confirmed that the discounting is a direct response to the challenging CapEx environment, allowing them to work creatively with customers who face new spending restrictions. He expects this accretive strategy, which often includes reagent commitments, to continue as long as the current market conditions persist.