NeoGenomics Concludes Inivata Purchase Deal


NeoGenomics, Inc. (NEO), one of the foremost providers of cancer-focused genetic testing and global oncology contract research services, recently completed the prior announced acquisition of liquid biopsy platform, Inivata Ltd.

Following the news release, shares of the company closed at $43.12, denoting a slight decline in Friday’s trading session.

The acquisition has been long in the making since NeoGenomics snapped up a minority stake with a $25 million investment in Inivata on May 20, 2020. At the time, the company was granted the option to acquire the remaining stake for $390 million before December 31, 2021.

Mark Mallon, CEO of NeoGenomics, said, “Inivata has been a strategically important partner for us over the last year and we are excited today to officially welcome the company’s world class team of professionals and liquid biopsy capabilities to NeoGenomics. We are particularly enthusiastic about Inivata’s highly sensitive RaDaR assay, targeting the emerging and significant opportunity for minimal residual disease testing. We plan on leveraging our established oncology diagnostics leadership position, human capital, strong pharma and clinical market relationships, and robust balance sheet to accelerate the development of this assay. The addition of Inivata bolsters our leading market position today and further establishes us as a leader in the rapidly evolving liquid biopsy testing space.” (See NeoGenomics stock chart on TipRanks)

Recently, Goldman Sachs analyst Matthew Sykes initiated a Buy rating on the stock with a price target of $55 (27.6% upside potential).

According to Sykes, NeoGenomics’ growth in organic revenues and robust acquisition record acts as tailwinds for the company. Notably, the company’s organic revenue growth of more than 20% and its increasing share in the oncology diagnostics market bodes well. Furthermore, its acquisition deals, competitive strength, customer relationships, and infrastructure lends strength.

Consensus among analysts is a Strong Buy based on 6 Buys and 1 Hold. The average NeoGenomics analyst price target of $58.17 implies upside potential of 34.9% from current levels. Shares of the company have gained 51% over the past year.

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