Fort Myers-based NeoGenomics, Inc. (NASDAQ: NEO), a leading provider of oncology diagnostic solutions, has completed its previously announced acquisition of Pathline, LLC, a CLIA/CAP/NYS-certified laboratory based in New Jersey. The strategic move strengthens NeoGenomics' commercial presence in the Northeast United States, a region described as historically underpenetrated but rapidly growing for cancer care.
The acquisition enables NeoGenomics to broaden access to its comprehensive oncology test menu, expand service capabilities, and accelerate growth specifically in molecular and hematology-oncology testing. Financial terms of the transaction were not disclosed.
Strategic Northeast Expansion
Warren Stone, Chief Commercial Officer for NeoGenomics, emphasized the strategic importance of the acquisition: "It presents a strategic opportunity because it brings New York state approvals." Stone noted that the company has historically achieved "deeper penetration rates in areas where we have close proximity to a lab like California, Florida and Texas."
"Integrating Pathline's operations into NeoGenomics' national network will further enhance our ability to support oncologists, healthcare institutions and patients in the Northeast region," Stone added.
Founded in 2009, Pathline serves hospitals, cancer centers, and physician practices, with approximately 98% of its revenue generated from customers in the Northeast. The company offers a comprehensive suite of subspecialty pathology services, including testing for rare blood cancers.
Enhanced Patient Services
The integration is expected to benefit patients and physicians in the Tri-state area by providing access to NeoGenomics' broad test menu and laboratory services. This aligns with NeoGenomics' growth trajectory, as the company served nearly 700,000 patients last year and has set a goal of reaching 1 million patients annually by 2028.
Zach Liu, Pathline's Chief Medical Officer and Laboratory Director, expressed enthusiasm about the merger: "We look forward to continuing to improve cancer care by expanding access to advanced molecular testing for the patients that we serve under the NeoGenomics banner moving forward."
Financial Outlook
NeoGenomics expects the acquisition to significantly improve its revenue and contribute to earnings starting in 2026 through operational consolidation efforts and synergies. While the company is not currently profitable, it anticipates generating positive cash flow from operations this year and beyond.
About NeoGenomics
Founded in 2001, NeoGenomics is a premier cancer diagnostics company specializing in cancer genetics testing and information services. The company offers one of the most comprehensive oncology-focused testing menus across the cancer continuum, serving oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms.
Headquartered in Fort Myers, Florida, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories throughout the United States, as well as a CAP-accredited full-service sample-processing laboratory in Cambridge, United Kingdom. With the addition of Pathline's New Jersey facility, NeoGenomics further expands its laboratory network and enhances its ability to deliver precision medicine solutions in oncology diagnostics.
