Tejas Savant's questions to Neogenomics Inc (NEO) leadership • Q1 2025
Question
Tejas Savant of Morgan Stanley inquired about the company's balance sheet flexibility for investments in NGS, MRD, and potential tuck-in acquisitions after paying down the 2025 convertible notes, considering the upcoming 2028 notes. He also asked about the expected ordering patterns for PanTracer liquid and tissue tests and the possibility of accelerating the next-gen MRD assay timeline.
Answer
CFO Jeff Sherman expressed confidence in the balance sheet, noting that Q1 is the highest cash burn quarter and that the company expects to be free cash flow positive in 2026, providing flexibility for the 2028 notes and ongoing investments. President & COO Warren Stone anticipates concurrent ordering of PanTracer tissue and liquid tests, particularly for lung cancer, driven by guidelines and physician preference. CIO Andrew Lukowiak described the 2027 MRD launch timeline as 'aggressive but achievable' and confirmed that analytical validation for RaDaR 1.1 is complete.