What Happened?
Shares of oncology (cancer) diagnostics company NeoGenomics (NASDAQ: NEO) fell 5.1% in the afternoon session after a key competitor, Exact Sciences, announced the launch of a new multi-cancer early detection blood test.
The new test from Exact Sciences, called Cancerguard™, is now available in the U.S. and analyzes multiple biomarker classes to detect a wide range of cancers. This development introduces significant new competition in the early cancer detection market, a critical area for diagnostic companies like NeoGenomics. The news has raised investor concerns about potential impacts on market share and future growth prospects for existing players in the field. The negative sentiment was felt by other companies in the sector as well, signaling broad market apprehension about the heightened competitive landscape.
The shares closed the day at $7.49, down 4.6% from previous close.
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What Is The Market Telling Us
NeoGenomics’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 22.5% on the news that a court ruled in the company's favor in a patent infringement lawsuit against Natera.
The District Court for the Middle District of North Carolina granted NeoGenomics' motion for summary judgment, declaring all of Natera's asserted patent claims invalid. The court stated it will dismiss Natera's claims with prejudice, a final judgment that prevents the case from being brought again. This legal victory is significant as it allows NeoGenomics to freely commercialize its RaDaR® ST assay, an oncology diagnostic solution. The company has already launched the product to biopharma customers and has submitted it to the Centers for Medicare & Medicaid Services (CMS) to obtain clinical reimbursement coverage, potentially expanding its market access.
NeoGenomics is down 56% since the beginning of the year, and at $7.26 per share, it is trading 61% below its 52-week high of $18.61 from January 2025. Investors who bought $1,000 worth of NeoGenomics’s shares 5 years ago would now be looking at an investment worth $199.72.
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