FT. MYERS, Fla.—NeoGenomics Inc., a provider of cancer-focused genetic testing services, announced recently that the company had acquired the Oncology Division assets of Human Longevity, Inc. for $37 million.
The Oncology Division of Human Longevity performs next-generation sequencing (NGS) services for pharmaceutical customers. The division generated approximately $10 million in revenues in 2019 and ended the year with a backlog of approximately $15 million of signed contracts.
“The acquisition of the Oncology Division assets from Human Longevity significantly enhances our position as a leading provider of pharma services and next-generation sequencing,” said Douglas M. VanOort, chairman and CEO of NeoGenomics. “This acquisition will expand our Pharma Services menu to include germline, whole-exome and whole-genome sequencing. We are delighted to add an experienced, specialized molecular workforce with strong next-generation sequencing expertise, particularly in servicing pharmaceutical customers, and I am pleased to welcome the Human Longevity Oncology Division employees to NeoGenomics.”
Leerink Partners analysts wrote that NeoGenomics is “a uniquely positioned one-stop oncology testing service provider with an expanding market position following their acquisition of Genoptix—positioning the company at the diagnostics center of the ‘oncology revolution’ in healthcare.”
Continued Leerink in an investors note: “Though acquisition is relatively small compared to their two most recent acquisitions, (~$139M for Genoptix in 2018 and ~$275M for Clarient in 2015), we are pleased to see NEO is investing in building out its comprehensive pharma services offering. NGS remains a key growth for NEO and based on our conversations with management, we believe the acquired division can grow 50 percent+ in 2020, implying $15M in revenues, and a ~2.5x sales acquisition multiple.”