The premier cancer diagnostics and pharma services company NeoGenomics (NASDAQ: NEO) has been in the headlines lately.
NeoGenomics serves oncologists, pathologists, pharmaceutical companies, academic centers, and others with innovative diagnostic, prognostic, and predictive testing. The company provides oncology-focused testing methodologies and platforms to help physicians to diagnose and treat cancer.
Recently, the company combined its cancer-focused research and testing services with best-in-class liquid biopsy technology, through its acquisition of England-based Inivata Ltd. Inivata is a global, commercial-stage liquid biopsy platform company. Over the past year, NeoGenomics stock has increased 28%.
Sharing his thoughts on the completion of the acquisition, Needham analyst Michael Matson commented that Inivata has added two attractive liquid biopsy products to the NeoGenomics portfolio. These include a liquid biopsy therapy selection test for non-small cell lung cancer (NSCLC) patients called InVisionFirst-Lung, and a blood-based minimal residual disease (MRD) test called RaDaR that will be used for multiple cancer types.
According to the analyst, NeoGenomics is expected to commercialize the RaDaR assay in 2022, with the expectation of submission to Medicare in 4Q21 or 1Q22.
Based on the analytical clinical study of the two tests, Matson seems convinced and positive about the tests.
The 5-star analyst expects RaDaR to open up a high-growth and attractive MRD market for NeoGenomics. Notably, the company estimates that the U.S. MRD TAM (Total Addressable Market) will be more than $15 billion, with the number of new cancer patients with the top 10 solid tumors exceeding $1.3 million in the U.S. (See NeoGenomics stock chart on TipRanks)
Overall, Matson believes that NeoGenomics is set to gain market share, based on its comprehensive testing services for the diagnosis and treatment of cancer. The analyst maintained a Buy rating and a price target of $55 on NeoGenomics, which implies an upside potential of 21.7%.
The Street’s consensus rating on the stock is a Strong Buy. That’s based on 5 Buys and 1 Hold. Looking ahead, the average NeoGenomics price target stands at $57.80, putting the upside potential at about 27.9% over the next 12 months.
According to the new TipRanks’ Risk Factors tool, NeoGenomics’ stock is at risk mainly from three factors: Regulatory and Legal risk, Finance and Corporate risk, and Production risk, which contribute 29%, 21%, and 19%, respectively to the total risk for the stock. Within the Regulatory and Legal risk category, NEO has 12 risks, details of which can be found on the TipRanks website.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.
