Published on July 30, 2009
EXHIBIT
99.1
NEOGENOMICS,
INC
PRESS
RELEASE
FOR
IMMEDIATE RELEASE
NeoGenomics
Enters into Strategic Supply Agreement with Abbott for
Development
of a Melanoma Cancer Test
Ft. Myers, Florida – July 24, 2009 -
NeoGenomics, Inc. (OTC BB: NGNM), a leading provider of
cancer genetics testing services announced today that it has entered into a
Strategic Supply Agreement with Abbott (NYSE: ABT). The Agreement
provides for Abbott to supply materials for NeoGenomics to develop its own FISH
(fluorescence in situ
hybridization)-based test for the diagnosis of melanoma. In a
separate transaction, Abbott has also acquired 9.6% of NeoGenomics common stock
for $4.8 million.
Under
terms of the Strategic Supply Agreement, NeoGenomics will evaluate and select
from Abbott’s proprietary single FISH probes to develop and commercialize a test
for melanoma diagnosis in the United States. Once the probes have
been identified by NeoGenomics, Abbott will supply them (some on an exclusive
basis) over the course of a ten-year term. The agreement may be
expanded, under certain circumstances, to include up to two additional tests for
other cancers.
According
to the American Cancer Society, approximately 68,000 new cases of invasive
melanoma will be diagnosed this year in the United States. Melanoma
typically starts as an abnormal mole on the skin and is easily cured if caught
and removed early. Once it spreads to other parts of the body,
however, it is particularly deadly. NeoGenomics intends to develop a
FISH test to distinguish benign versus malignant melanoma. The goal
for the new test is to provide the ability to more accurately diagnose malignant
melanoma and provide more accurate prognostic information, thus assisting
dermatologists in better managing patient care.
“We are
delighted to have entered into this strategic agreement with
Abbott. Melanoma is the most serious form of skin cancer, and its
incidence continues to rise significantly. We are very pleased to have this
opportunity to research, develop and offer a new genetic test to help clients
better diagnose and treat patients who may suffer from melanoma,” said Douglas
VanOort, Chairman and Chief Executive Officer for NeoGenomics.
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With more
than one million skin cancers diagnosed annually, distinguishing melanoma from
other less severe forms of skin cancer is vital. In particular, it
has been reported that current diagnostic tools and techniques for detecting
cutaneous melanoma can be especially difficult in cases arising in association
with a nevus (mole), and that 30-50% of cutaneous melanomas occur with an
associated nevus. A FISH test for melanoma has the potential to
improve existing diagnostic techniques in cases that are ambiguous, borderline
or difficult to diagnose. NeoGenomics estimates that this new
melanoma test represents a $50-$100 million annual revenue opportunity in the
next 4-6 years.
“Influencing
the existing cancer testing market in the US is a challenge, but all of us here
at NeoGenomics believe the timing, scientific literature and market conditions
are right for this new melanoma FISH test,” said Robert Gasparini, President and
Chief Scientific Officer of NeoGenomics. “We believe this new
melanoma FISH test will complement our existing portfolio of FISH
products. We also believe dermatopathologists will have a high level
of interest in offering this test to their customers.”
While
this new test is still in the development phase, NeoGenomics currently
anticipates bringing a FISH test to market in early 2010 after completing a
rigorous validation process. In the event that Abbott develops and
obtains FDA approval for its own FISH-based melanoma test, the Strategic Supply
Agreement provides a means by which NeoGenomics may offer the FDA-approved test
to its customers instead of the laboratory developed test being offered by
NeoGenomics.
In
addition to the Strategic Supply Agreement, NeoGenomics and Abbott executed a
Common Stock Purchase Agreement and a Registration Rights Agreement pursuant to
which Abbott has invested $4.8 million to acquire 3,500,000 common shares of
NeoGenomics at a price of $1.362 per common share. These Agreements
prohibit Abbott from selling or otherwise transferring its shares at any time
during the 180-day period immediately following the closing of the
transaction.
About
NeoGenomics
NeoGenomics,
Inc. is a high-complexity CLIA–certified clinical laboratory that specializes in
cancer genetics diagnostic testing, the fastest growing segment of the
laboratory industry. The company’s testing services include
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry,
morphology studies, anatomic pathology and molecular genetic
testing. Headquartered in Fort Myers, FL, NeoGenomics has labs in
Nashville, TN, Irvine, CA and Fort Myers and services the needs of pathologists,
oncologists, urologists, and hospitals throughout the United States. For
additional information about NeoGenomics, visit http://www.neogenomics.org.
For more
news and information on NeoGenomics, please visit www.IRGnews.com/coi/NGNM where you can
find a fact sheet on the company, investor presentations, and
more. Interested parties can also access additional investor
relations material, including an investment profile and an equity research
report, from Hawk Associates at http://www.hawkassociates.com
or from the American Microcap Institute at http://www.americanmicrocapinstitute.com/ngnm/.
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Forward-
Looking Statements
Except for historical
information, all of the statements, expectations and assumptions contained in
the foregoing are forward-looking statements. These
forward-looking statements involve a number of risks
and uncertainties that could cause actual future results to differ materially
from those indicated in the forward-looking statements. Actual results
could differ materially from such statements expressed or implied herein.
Factors that might cause such a difference include, among others, the company’s
ability to continue gaining new customers, offer new types of tests, and
otherwise implement its business plan. As a result, this press release should be
read in conjunction with NeoGenomics’ periodic filings with the
SEC. NeoGenomics undertakes no obligation to release publicly any
revisions to forward-looking statements as a result of subsequent developments
or events.
For
further information, please contact:
|
NeoGenomics,
Inc.
|
The
Investor Relations Group
|
|
Steven
C. Jones
|
Investor
Relations:
|
|
Director
of Investor Relations
|
Rachel
Colgate
|
|
(239)
325-2001
|
(212)
825-3210
|
|
sjones@neogenomics.org
|
rcolgate@investorrelationsgroup.com
|
|
or
|
|
|
Hawk
Associates, Inc.
|
Media
Relations:
|
|
Ms.
Julie Marshall
|
Janet
Vasquez
|
|
(305)-451-1888
|
(212)
825-3210
|
|
neogenomics@hawkassociates.com
|
jvasquez@investorrelationsgroup.com
|
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