NeoGenomics Acquires Pathline to Strengthen Oncology Testing in the Northeast
NeoGenomics, Inc. (“NeoGenomics” or the “Company”) (NASDAQ:NEO), a leading provider of oncology testing services, has announced its acquisition of Pathline, LLC, a CLIA/CAP/NYS-certified laboratory based in New Jersey. This acquisition represents a significant expansion of NeoGenomics’ commercial presence in the Northeast region of the United States. By incorporating Pathline’s well-established laboratory services and expertise, NeoGenomics aims to enhance its service capabilities and accelerate its growth in molecular and hematology-oncology testing. The acquisition is particularly strategic in establishing a stronger local presence in a historically underpenetrated but rapidly growing geographic area.
Strategic Rationale for the Acquisition
NeoGenomics’ decision to acquire Pathline aligns with its broader corporate strategy of strengthening its regional presence in key markets while expanding its oncology testing capabilities. With New York State (NYS) approvals and a strong customer base concentrated in the Northeast, Pathline’s addition enhances NeoGenomics’ ability to provide specialized diagnostic services to oncologists, hospitals, and healthcare institutions. The acquisition also enables NeoGenomics to replicate the success it has achieved in other regions where it has established laboratory operations, such as California, Florida, and Texas.
“The acquisition of Pathline presents a strategic opportunity because it brings New York State (NYS) approvals and, when combined with our rapid turnaround times and leading customer experience, will enable us to accelerate growth in what has historically been an underpenetrated region,” said Warren Stone, Chief Commercial Officer at NeoGenomics. “We have deeper penetration rates in areas where we have close proximity to a lab, such as 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.”
Pathline’s Background and Service Offerings
Founded in 2009, Pathline has built a strong reputation as a trusted provider of comprehensive subspecialty pathology services. The laboratory serves a longstanding client base, including hospitals, cancer centers, and physician practices, with approximately 98% of its revenue coming from customers in the Northeast region. Pathline’s suite of services includes:
- Histopathology – Detailed tissue analysis to diagnose cancer and other diseases.
- Immunohistochemistry – Advanced staining techniques to detect specific antigens in cells.
- Cytology – The study of individual cell structures to identify abnormalities.
- Cytogenetics – The examination of chromosomal changes associated with diseases such as cancer.
- Flow Cytometry – A technique used to analyze the characteristics of cells, often in hematological malignancies.
- Fluorescence In Situ Hybridization (FISH) – A method for detecting specific genetic abnormalities.
- Molecular Pathology – Genetic and molecular testing to guide cancer diagnosis and treatment.
The acquisition of Pathline allows NeoGenomics to broaden its capabilities in these key areas while also expanding access to advanced molecular testing for a larger population of patients in the Northeast.
The Impact of the Acquisition on NeoGenomics’ Growth Strategy
NeoGenomics has long been committed to expanding its reach in the oncology diagnostics sector by investing in high-quality laboratories and leveraging cutting-edge technology. The addition of Pathline aligns with this commitment and provides several competitive advantages:
- Strengthening Market Presence in the Northeast – While NeoGenomics has successfully established strongholds in several regions across the United States, the Northeast has historically been a challenging market due to limited laboratory infrastructure. Pathline’s existing footprint provides an immediate pathway to deeper market penetration in this key region.
- Enhancing Service Offerings and Turnaround Times – With a local laboratory in New Jersey, NeoGenomics will be able to offer faster turnaround times for oncology testing, which is critical for patient care. The integration of Pathline’s operations will allow the company to deliver results more efficiently to oncologists and healthcare providers, improving the overall patient experience.
- Leveraging New York State Approvals – One of the most valuable aspects of the acquisition is the inclusion of New York State (NYS) laboratory approvals, which can be challenging to obtain. These approvals position NeoGenomics to provide services to a broader range of healthcare providers and institutions across New York, one of the most densely populated states in the country.
- Revenue Growth and Operational Synergies – The acquisition is expected to contribute positively to NeoGenomics’ revenue growth. By integrating Pathline into its national network, NeoGenomics anticipates operational efficiencies and cost synergies, which will enhance profitability. The company expects the transaction to be accretive to Adjusted EBITDA (AEBITDA) beginning in 2026.
- Supporting Innovation in Oncology Testing – As precision medicine continues to evolve, there is an increasing demand for specialized oncology diagnostics. Pathline’s expertise in molecular and hematology-oncology testing complements NeoGenomics’ mission to provide cutting-edge diagnostic solutions that improve patient outcomes. The combined resources of both organizations will drive further innovation in the field.
Leadership Perspectives on the Acquisition
Dr. Zach Liu, Chief Medical Officer and Laboratory Director at Pathline, expressed enthusiasm about joining forces with NeoGenomics: “As part of NeoGenomics, we are excited to leverage our expertise and strong oncology testing capabilities to reach more patients and healthcare providers. Our team has built a trusted laboratory serving hospitals and oncology practices across the Northeast, and 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.”
NeoGenomics leadership echoed similar sentiments, emphasizing the value that Pathline brings to the organization. “The acquisition of Pathline is a testament to our commitment to delivering high-quality oncology testing services,” said Stone. “With this acquisition, we are well-positioned to offer comprehensive, state-of-the-art diagnostic solutions to a greater number of patients and healthcare providers in the Northeast.”
About NeoGenomics, Inc.
NeoGenomics, Inc. is a premier cancer diagnostics company specializing in cancer genetics testing and information services. We offer one of the most comprehensive oncology-focused testing menus across the cancer continuum, serving oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms with innovative diagnostic and predictive testing to help them diagnose and treat cancer. Headquartered in Fort Myers, FL, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories for full-service sample processing and analysis services throughout the US and a CAP-accredited full-service sample-processing laboratory in Cambridge, United Kingdom.
