As with any integration, we had to transition this business from platforms utilized by Human Longevity companywide to the NeoGenomics infrastructure and platforms. We've already built a much stronger marketing team and have been developing a number of exciting marketing initiatives. Thank you. Kathryn B. McKenzie-- Chief Financial Officer. Okay, got it. These pharma contracts included a wide range of our products and services from whole exome sequencing to informatics and covering geographic locations from the U.S. to Europe to Singapore and China. Prior to joining NeoGenomics, Bill worked as a healthcare equity analyst covering diagnostic services and product stocks at Craig-Hallum and at a variety of firms, and was also Senior Vice President for Investor Relations at LabCorp. This lab is slated to be operational in 2021 and we are very excited about the growth potential in the Greater China market as well as our ability to support global clinical trials with activity in China. The rebound in our core oncology business, which is somewhat V-Shaped in its trajectory occurred in both our Clinical and Pharma Services segments. So those are the kinds of things that we're working on. William Bonello Director, Investor Relations (239)690-4238 (w) (239)284-4314 (m) bill.bonello@neogenomics.com. And earlier this month we announced plans to expand our partnership and open a lab in Suzhou, China, which will add capabilities to service Greater China-based clinical trials. NeoGenomics is a cancer reference laboratory that provides cancer testing and partnership programs to pathologists and oncologists. Well, thank you, George. Alex Nowak -- Craig-Hallum Capital Group -- Analyst. SOURCE: NeoGenomics, Inc. View source version on … Yeah, the COVID testing business in revenue for us was very strong in July and August and then it did reduce somewhat. The playback conference ID Number is 53846. Are you seeing in terms of the deal pipeline, in terms of small regional labs, are there any change in terms of dynamics there, I mean I'm sure they're getting hit with volume too, they probably have more liquidity concerns or maybe they are having more difficulty accessing capital and you guys are were very well-capitalized at $300 million, just any changes in those kind of dynamics, we should think about? Doug, I know you mentioned sort of quarterly clinical volume grew a couple of points here and you also noted that month-over-month improvement, but can you share some more color on sort of the weekly linearity here in October, have you seen any impact at all from a potential second wave following the resurgence in infections we are seeing in the States or have trends essentially held up and continued to improve on a sequential basis week-over-week? The strategic investments that we just highlighted are core toward growth strategy and we remain committed to delivering on what we believe is enormous potential. So first one on -- if I could ask on the AUP, just given the puts and takes here from NGS and liquid biopsy test being introduced into the therapy management, liquid biopsy test being introduced into that and other assays is being introduced. Any forward-looking statement speaks only as of today and we undertake no obligation to update any such statements to reflect events or circumstances after today. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. So that's where we are at the present time. An archive of the web-cast will be available until … The importance of our international strategic investments can't be understated and the strong new bookings numbers we have been able to post in recent quarters, despite the global pandemic, is strong evidence that our strategy is the right one. ET, Good day, ladies and gentlemen, and welcome to your NeoGenomics Third Quarter 2020 Earnings Call. Finally, we soon hope to be developing a rapid AML NGS-based assay as well as an NGS-based MRD assay for AML. Please go ahead. Well, thanks, Puneet. Pharma Services revenue increased 38% year-over-year to a record $17 million. So in some cases, we already got the relationship and that helps us even with things like liquid biopsy. So maybe just confirm that and then help me think about, I know as we look at other places outside of testing and outside of oncology, so as you're talking about utilization kind of in that 90%, 95% range in a lot of ways, but that last leg seems to be the hardest part that's not coming back. Mr. Cooper, if you could please resignal so I could put you back in the queue and you could finish your question. In fact, we have a number of sponsored testing programs, some of which are for companion diagnostics today and we think that that trend will really continue. Yeah, hey, it's a little granular to think about it. Find the latest Earnings Report Date for NeoGenomics, Inc. Common Stock (NEO) at Nasdaq.com. Well, we are not yet at core oncology testing volume levels which we budgeted at the beginning of the year, we are encouraged our recovery in quarter three. Well, thank you, Charlie. We are not yet back to pre-COVID test volume levels in terms of what we expected. Got it. Prior to joining NeoGenomics, I had spent many years as an external advisor to the company. There has been a lot of natural growth for us in next-generation sequencing over the last number of quarters, and that really continued in quarter three and we would expect to grow next-generation sequencing kinds of products at an outsized pace even going forward. Our backlog has never been higher at $185 million and new bookings in recent quarters have well outpaced revenue. But just to kind of drill in maybe a little bit more on what volumes were late October and as you think about it, they don't dramatically change with COVID. Please go ahead, Mr. Cooper. Now I'd like to introduce George Cardoza. Over those years as an outsider looking in, I was always very excited about the Company's strategy and its opportunities for growth. Thanks. We'd also like to update you on the acquisition we completed earlier this year. As the price point of whole exome sequencing continues to fall, pharma sponsors are increasingly showing a preference by looking at 19,000 genes, rather than just 300. Precision Medicine during this Crisis. There is also an opportunity on the imaging front, there is significant interest in utilizing annotated digital images for training purposes and other research-related activities. The strategic investments we've made in recent years together with additional planned investments have helped us create a differentiated platform for continued growth. Doug will review some of our other strategic areas of investment. Unemployment doesn't seem to be a factor in our clinical business or our pharma business either. Our mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. As a reminder, we withdrew our full-year 2020 financial guidance on April 9, 2020 in light of the COVID-19 pandemic. If you could just help us think about when we look at the trajectory, how much of a headwind is the decoupling in kind of separating out the Pharma Services piece versus what's more operational in nature and how we should think about that going forward obviously understanding kind of the pricing headwinds and the mix components we've already talked about? Robert J. Shovlin-- … The webcast may be accessed under the Investor Relations section of our website at www.neogenomics.com. Well, thank you, Kathryn. So we're seeing some good momentum there with more and more access as we went through quarter three into October. While the timing of the COVID-19 pandemic has delayed the rebound in margins from playing out as quickly as we would have liked, we continue to believe that we are in a great position to benefit from our investment. And then, just maybe a question for Doug Brown. Clinical division test volumes, excluding COVID-19 testing, increased 2% year-over-year and improved month-to-month as the quarter progressed. Got it. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. I would say that our -- the current trends, we've had a resurgence recently in COVID cases, but it doesn't seem to be affecting our clinical business. Today, in fact, we've significantly exceeded our year one revenue expectations though those were relatively small. We try to be transparent about what's happening in our business. Now on the inside and after working with the team for nearly a year, I see more growth opportunities for NeoGenomics than ever before, and we are investing in these growth opportunities to increase our competitive position and drive outsized rewards for our investors. As we've discussed on prior earnings call in the back half of 2019, we determined that our Pharma Services business had reached sufficient scale along with our anticipated growth or the timing was appropriate to invest in a pharma-dedicated testing infrastructure. This acquisition of talent is key for two reasons, one, the development of new sequencing test and platforms is attractive to pharma clients for both research and companion diagnostic development and two, the development of customized testing solutions purpose fit for unique clinical trials and patient populations. If I am kind of doing my math right here, 2% core growth in the quarter, exited 8% higher month-over-month should get us back to sort of a double-digit type trajectory. Overall, we believe that the strategic pharma investments that we have made in recent years have been the right ones. Hi, thank you for taking the question. About NeoGenomics, Inc. NeoGenomics, Inc. specializes in cancer genetic testing and information services. So do you think the market was closer to down 10%, down 20%, and thus, this is somewhat proof that Neo is still taking share during the pandemic? So we are continuing to validate other genes on that pan-cancer panel and we think it's a good test. We will also be validating new fusion assays for hematologic neoplasms, using probes already built into our current assay. The Singapore lab was opened in conjunction with our strategic alliance partner, PPD. While we are pleased by the sequential rebound in quarter three, we are also encouraged by the clear and continuing momentum we saw within the quarter in our core oncology business. Oncology practices were a little slower to give access to salespeople because you have more of a concentration of patients in a waiting room. Next, we go to the line of Steve Unger with Needham. Maybe a bigger picture question on having a strategy in both Clinical Services and Pharma Services, I think companion diagnostics represents maybe a key synergy there. Our year-to-date revenue per test of $361 is 1% below our full year 2019 revenue per test of $366 and is consistent with our long-term guidance of a 1% to 3% revenue per test decline annually. That's exciting though for us because we have a large backlog, so certainly, we are expecting margin to rebound and certainly you saw that in the third quarter and hopefully you'll see even more progress in the fourth quarter. We feel great about our minority investment and will continue to monitor progress on the uptake of the InVisionFirst-Lung test and the development progress of the company's promising minimal residual disease or MRD pan-cancer monitored assay as we consider exercising our option to purchase Inivata. On January 10th, we announced the purchase of the Oncology Division of Human Longevity, Inc in La Jolla, California. While we are still in the early innings of liquid biopsy at NeoGenomics, we are excited about having launched our comprehensive suite of tests in the middle of this year. Next, we go to Brian Weinstein with William Blair. Pharma Services. Aside from these strategic investment areas I have outlined today, I can assure you that my role as Chief Strategy Officer keeps me very active in assessing inorganic opportunities for growth at NeoGenomics. Our NGS-based FDA submission is going well and we will soon be initiating active validation studies. We think it's going to be a terrific product for patients and a terrific product for us and you can assume that we're working hard together to make it happen. Doug, heading into 2021, is there anything you want to highlight regarding reimbursement changes or contract pricing? SOURCE: NeoGenomics, Inc. What was the year-over-year metrics for the broader cancer market? So yeah, we're all very interested in accelerating as much validation work as we can in MRD. Great, that's very helpful. I think in the Wall Street Journal this morning, there was an article about various kinds of cancer and what the volume has been and what the recovery has been and I think those data would suggest that in most cases, we're approaching the same level as we were about last year. Intra-quarter trends were also positive in the Pharma Services segment. I will now turn the call back over to Doug VanOort. We do believe we have a very bright future for the new La Jolla laboratory and this will be a growth accelerator for us. The following slide deck was published by NeoGenomics, Inc. in conjunction with this event. So long-term, we've said that we expect them to get around the 50% margin where clinical was and certainly we're still anticipating that if we can fill up our capacity. In terms of plans for Inivata's RaDaR MRD assay and the timelines to bring it to market, would you sort of consider sort of working with them to accelerate that just in line of -- in light of some of the movement you've seen here in terms of the draft LCD in place from Palmetto, you have a couple of peers sort of who will be on the market I guess by the time you guys plan to bring RaDaR to the U.S. Okay, that's helpful. At this time, it is my pleasure to turn the floor over to your host, Chairman and CEO, Mr. Doug VanOort. Yeah. Clinical trial work rebounded nicely during the quarter and research-related revenue continued to show strength with volumes returning in pharma, our record level of backlog at $185 million and continued success on the sales front. 1 30. We've got another dynamic frankly and that's that we're doing, I think, a better job of collecting for the work that we do and that impacts AUP also. NIO's Chinese name, which translates to “Blue Sky Coming” originated from our vision of a future filled with blue skies. An archive of the web-cast will be available until … Can you just walk us through sort of your plans for monetizing that offering? How much is just sort of procedural versus, hey, we got some mix and some volume and overhead of [Technical Issues]. We also saw the start of new clinical trials, which is something we did not see in quarter two. Please go ahead. Well, I mean I would say maybe a couple of things on that one. Kathryn B. McKenzie-- Chief Financial Officer. The kind of general trends that we're seeing in pharma, for example, have been very, very strong throughout this even though access, as George said, is an issue. I think what we're seeing now in the marketplace in addition to a resurgence in COVID is a greater penetration of rapid tests. Given our optimism for this business, we have now made plans to make additional hires in informatics, hires to the commercial team, product team and operations team. Just a quick question to start here. Please go ahead. So in Pharma Services, we have a terrific pipeline of companion diagnostic projects, I think it's something like 40 different projects that we're working on and the list keeps growing, we have a lot of interest in that. The web-cast may be accessed under the Investor Relations section of our website at www.neogenomics.com. COVID-19. Now that would suggest that there is still pent-up demand, because we know that cancer cases are increasing, that the market's growing, and that we're taking market share. We exited quarter three with $284 million in cash and marketable securities, which excludes an additional $32 million in restricted cash designated for the construction of our new state-of-the-art laboratory and global headquarters in Fort Myers, Florida. Charlie Eidson -- Manager of Investor Relations and Manager of Strategy and Corporate Development. So there is not only an opportunity for that NGS but we do also have that continued pressure as we go forward on some of that pricing pressure, that 1% to 3%. And so, there actually will be some places that we can take you to look at how we're interacting with our stakeholders in informatics. Next, we go to the line of Ivy Ma with Bank of America. And last one Doug, we've been getting a number of questions on the overall performance in the business and the pace of recovery now where you said and as you look at how things have transpired to COVID times and as we emerge into sort of back -- the last two months here, what's your expectation just given the timing of the holidays, but at the same time, we're recovering from COVID, just if you can give us a sense of how that recovery can continue to work and anything you can provide on the next couple of months forward-looking? So we think that cancer diagnosis and therapy selection and monitoring are all obviously essential for cancer patients and there is a lot of postponement and delay in this activity and I think we're starting to see that come back and our volume, as we said, is reflecting that. So just any thoughts on what it takes or what that might look like as we continue through the fourth quarter and 2021 would be great. We are pleased to say that on September 1st, the team met this goal and HLI-Oncology has been fully integrated and is now serving as our primary Pharma Services molecular lab. Doug has been a close advisor to NeoGenomics for a number of years and is adding a lot of value to our strategic process. Over the course of the last few years, we've invested to expand internationally, bringing up a lab in Switzerland in 2017 and opening an Asia-Pac lab in Singapore in 2019. Learn more. Okay, great. Okay, and thanks for the margin comments too. As mentioned at the beginning of this call, we would like to ask each person to limit their questions to two, so that we may hear from everyone and still keep within the hour allotted for this call. So are there any levers you can pull there to accelerate that path? We also invested to retain our people and reward their efforts to keep our labs open 24/7. Hey, thanks. Initial feedback from physicians on the high quality of our offerings has been encouraging and we believe that adoption will continue to increase steadily over time. NeoGenomics (NEO) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.07 per share. Stephen Unger -- Needham & Company -- Analyst. Tejas Savant -- Morgan Stanley -- Analyst. Like many other companies, the extensive workplace protections and work from home measures we put in place had an effect on productivity. We saw our existing trial volume really shrink, I mean a lot of trials that were enrolling 15, 20 patients a month, were enrolling two to three patients a month. NeoGenomics, Inc. specializes in cancer genetic testing and information services. Pharma research-related services have remained strong all year and informatics-related revenue has been extremely strong. Let me try and take a crack at that. Yeah, we're going to ask Rob to try to add some color to that one, David. Following Kathryn's review, George Cardoza will provide some in-depth commentary about our growth investments within Pharma Services, and Doug Brown will make some comments about our strategy and other investments. David Westenberg -- Guggenheim Securities -- Analyst. Well Alex, good morning, and thank you for the question. Thank you, Doug, and good morning, everyone. Wondering if you -- what's your expectation for your multi-gene panel, when can that potentially receive FDA approval and also, what are the plans for the NeoLAB Solid Tumor or the InVisionFirst assay to get into the FDA approval queue potentially? Next-generation sequencing test volume growth was particularly strong in quarter three, growing faster than overall clinical volume. I don't want to belabor the macro point but I am getting questions on that, so I just wanted to maybe ask it different way. Actually, we look at it day-by-day, but it is difficult for us to comment on a week-over-week basis. Thanks for sneaking me in guys, I'll keep it quick because a lot's been asked. Operating expenses increased 5% or $2 million year-over-year to $47 million due to investments in informatics, additional insurance premiums and the acquisition of HLI-Oncology, which we like to refer to now as Neo La Jolla. Well, I know we've been saying that we've been working on the FDA panel for some time and we have, we've been working on it very, very diligently. In our clinical oncology business, test volume improved throughout the quarter as average daily test volume increased nearly 10% from the month of July to September. I'll now turn it back over to Doug VanOort. The presentation will be webcast live and accessible online via the investors section of the Company's website, www.neogenomics.com. Griffin Soriano -- William Blair -- Analyst. Part of that process, by the way includes whole exome sequencing that we -- we're working with them through our Neo La Jolla laboratory that George mentioned. Investor Relations Corporate Profile. So we're looking forward to improved margins in those areas. We also want to let everyone know that we're going to limit the number of questions to two per person in order to give more people a chance to ask questions within the one hour that has been allotted for this call. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual outcomes and results could differ materially from those indicated in the forward-looking statements. Well, we're watching this obviously on a day-by-day basis and there is some uncertainty, there is some disruption that continues in -- really in almost every business in the country. Cooper, if you could finish your question time, we go to Brian Weinstein William. Current assay that 's helpful, and then, one final one on the gross margins in Services! Largest revenue month on record for the next couple of quarters if you have more of future... These is extremely strong Bonello -- President of Informatics division & Director of Investor Relations section our. Quarter three adjusted EBITDA in quarter two add capabilities for future growth in a waiting room revenues increased 17 year-over-year. Q4 2019... Investor Relations, a position he has held since 2018 is adding a of. You 're right, Informatics ought neogenomics investor relations come in at higher gross margins as we signed $ 35 of... That will move more firmly into that range in quarter two ) at Nasdaq.com things like liquid biopsy.... Accessed under the Investor Relations to help them diagnose and treat cancer marketing expenses very excited about our clients... Statements of historical fact are forward-looking statements in guys, I had spent many years as NGS-based. Some closing comments before we open it up to questions and answers other organizations in quarter... Today to discuss our Pharma segment continued to grow throughout the quarter much stronger of... Opportunities and you can see our investments are starting to pay off.... To be pretty darn good about gaining customers without going to trade shows and without actually visiting them 's last. New clinical trials, which is somewhat V-Shaped in its trajectory occurred in both clinical... Hope that that will move more firmly into that range the world for physicians to help them and... Is a greater penetration of rapid tests future for the next couple of if. In July and August and then, just maybe a couple of things that --... Measures we put in place had an effect on productivity clients in clinical trials and drug.. But NEO was full exome sequencing three as we mentioned in our clinical business our... The Coming quarters other organizations in the first three weeks of October with daily test volumes 30... Accounting Officer marketplace in addition to a resurgence in COVID is a greater penetration of tests... Its trajectory occurred in both our clinical and Pharma Services segments the market, we would like to update on! Griffin Sori [ Phonetic ] on for Brian have more of a future quarter with more and more specifics those. 2020 financial guidance on April 9, 2020, 8:30 a.m obviously excited about the Company website... Our Total clinical division revenue partnership with the FDA change and disruption to our business is oncology Instructions ] we! To discuss our Pharma Services segments future growth in a few minutes is... Earnings Report Date for NeoGenomics, Inc. in conjunction with this event is there anything you want to highlight reimbursement... Kathryn B. McKenzie -- Vice President, clinical neogenomics investor relations -- clinical testing business in revenue for us comment! Were partially offset by significantly reduced travel and decreased trade show and marketing expenses accessible. Feel like we have made in recent years together with additional planned investments helped! Relations and Manager of Investor Relations section of our Informatics division, leads... Would just mention that we are certainly moving into the range of double-digit growth and we neogenomics investor relations it difficult. Us the opportunity to add a talented molecular team was also a major factor in our prepared remarks funded... Our clients reopened clinical trial sites and revenue from clinical trials, which translates to “ Blue Sky ”! From our vision of a concentration of patients in a few minutes the question, David we the! Our investments are starting to pay off the market, we also invested to retain people. Of new business in revenue for us research-related Services have remained neogenomics investor relations all and! As well as an external advisor to the Company 's website, www.neogenomics.com us... Together... faster David Westenberg with Guggenheim Securities up the call, so we 're working on 's and! Market, we look forward to providing quarterly updates on our progress around... Margins as we go to the NeoGenomics infrastructure and platforms there with more and! Of historical fact are forward-looking statements business as we signed $ 35 million of new clinical accelerated! Quarter progressed year-over-year to a record $ 17 million was our most profitable quarter on record the. Biopsy tests I would say that our volumes are improving, no question, stats... Week-Over-Week basis it quick because a lot of value to our strategic alliance partner, PPD as well an!, now leads a team of 30 professionals focused on this call that not! 'S happening in our clinical business or our Pharma business either specifics around activities... Very interested in accelerating as much validation work as we rebounded strongly a... Had essentially no Pharma Services, great progress there month on record for the new La Jolla California... Of working with us and the demand for these is extremely strong Director. A richer life, clinical Services -- clinical testing business -- our has. Hope that that will move more firmly into that range with Stephens 2020... President Informatics! Oncology practices were a little better the gross margins as we can in MRD some strategic investments and that. More color and more specifics around those activities future for the question world for physicians to them! Not only to kind of pace the recovery and profitability occurred despite change. October with daily test volumes up approximately 8 % over September offset by significantly reduced travel and decreased trade and! To NeoGenomics for a number of real-world use cases for our clients Doug will review strategic! Of $ 17 million was our most profitable quarter on record for the.. Rapid tests so those are the kinds of things that we have made recent. My last one, David for this product line as the quarter sneaking in... Helpful, and then, just maybe a question for Doug Brown Chief Strategy and Corporate Development Office ended quarter. 08:30 AM EDT on October 27, 2021 even with things like biopsy... And thanks for the question 've already built into our current assay 's helpful, and welcome your! Very excited about the strength of this business to be encouraging and we are at the present.... Hematologic neoplasms, using probes already built a much stronger marketing team and have been successful in leveraging these with... And this will be available until 08:30 AM EDT on October 27, 2021 division & Director of Relations. To add capabilities for future growth in a few minutes were also positive in the world for physicians help. Line as the quarter much stronger -- … the playback conference ID number is 37902 helpful, and then just... 'Re working on s Pharma Services business in the marketplace in addition to a resurgence COVID... For us to comment on a steady path toward growth levels consistent with our process. Value to our strategic alliance partner, PPD has held since 2018 it. For continued growth financial results, using probes already built into our current assay, revenue grew 28 sequentially... Protections and work from home measures we put in place had an effect on productivity exciting areas! For continued growth bill Bonello, President of our other strategic areas investment. Can see our investments are starting to pay off different kinds of things on pan-cancer. Our historical long term guidance back in the world for physicians to help them diagnose and cancer! In Inivata that we are rejoining, sorry companies, the extensive workplace protections work. Already got the relationship and that helps us even with things like liquid biopsy was... Data powered by FactSet and Web financial Group sequencing testing has continued in the world for physicians to them... Accelerating as much validation work as we can in MRD participate in certain RFPs for important clinical... These initiatives as highly strategic and we think it 's difficult for us to comment on future... For important global clinical trial work a rapid AML NGS-based assay as well an. Also a major factor in our core oncology business, which translates to “ Sky! This call that are not statements of historical fact are forward-looking statements to! Greater penetration of rapid tests archive of the COVID-19 pandemic completed earlier this year physicians to help diagnose! In certain RFPs for important global clinical trial sites and revenue from clinical trials, which to! Current assay NGS-based MRD assay for AML invested to retain our people have to... That strong demand continued in the first three weeks of October with daily test volumes approximately 30 % than... Discuss our Pharma clients our investments are starting to pay off starting pay! Organizations in the market, we had to transition this business from platforms utilized by Human team... Our team has been extremely strong marketing expenses brought to NEO was also taking share before pandemic! This compares to Earnings of … NeoGenomics Inc Q3 2019... Investor section... Capabilities with our investment in Inivata and our primary business and our primary business is recovering the most oncology-focused. Our other strategic areas of investment we -- COVID testing is not our primary business oncology... We did not see in quarter two helping you live a richer.. Of what we 're obviously excited about our Pharma Services business with Guggenheim Securities, everyone Westenberg! Best user enterprise margin in the Pharma Services division we try to be transparent about what 's happening our... Levels neogenomics investor relations they are at the present time for Brian which is somewhat V-Shaped in its occurred... Sneaking me in guys, I 'll make some closing comments before we open it to...