Puneet Souda's questions to Neogenomics Inc (NEO) leadership • Q1 2025
Question
Puneet Souda of Leerink Partners noted that NGS growth appeared lower and asked about long-term expectations and whether core AUP was down beyond the Pathline dilution. He also inquired about cost-lowering initiatives given the near-term growth profile.
Answer
CFO Jeff Sherman explained the lower NGS growth was due to a difficult year-over-year comparison of over 50% growth in Q1 2024, and the company still expects over 25% NGS growth for the full year. Management detailed several cost-saving initiatives, including gaining operating leverage from volume growth, a long-term LIMS project, lab automation, optimizing the site footprint, and transitioning to more cost-effective sequencing platforms like the NovaSeq X and the new Ultima Genomics partnership.