NeoGenomics Acquires Pathline to Expand Oncology Testing in the Northeast
NeoGenomics, Inc. (NASDAQ: NEO), a leading provider of oncology testing services, has announced the acquisition of Pathline, LLC, a CLIA/CAP/NYS-certified laboratory based in New Jersey. This acquisition significantly enhances NeoGenomics’ presence in the Northeast U.S., broadening its service capabilities and accelerating growth in molecular and hematology-oncology testing. It also establishes a local presence in a region that has historically been underpenetrated but is rapidly expanding in terms of healthcare demand.
This strategic acquisition will significantly strengthen NeoGenomics’ commercial presence in the Northeast U.S., providing enhanced service capabilities and accelerating growth in molecular and hematology-oncology testing. The addition of Pathline’s operations allows NeoGenomics to establish a local presence in the Northeast, an area that has traditionally been underpenetrated but is experiencing rapid growth in healthcare demand, particularly in cancer care.
Founded in 2009, Pathline serves a strong client base that includes hospitals, cancer centers, and physician practices, with approximately 98% of its revenue coming from customers in the Northeast. The laboratory offers a wide range of subspecialty pathology services, including histopathology, immunohistochemistry, cytology, cytogenetics, flow cytometry, fluorescence in situ hybridization (FISH), and molecular pathology. This robust service offering aligns closely with NeoGenomics’ existing portfolio, enhancing its ability to provide comprehensive oncology diagnostics.
“The acquisition of Pathline presents a strategic opportunity because it brings New York State (NYS) approvals to our portfolio. When combined with our rapid turnaround times and leading customer experience, we will be able to accelerate growth in what has historically been an underpenetrated region,” said Warren Stone, Chief Commercial Officer at NeoGenomics. He emphasized that NeoGenomics has already achieved deeper penetration in regions where the company maintains close proximity to its labs, such as California, Florida, and Texas. The addition of Pathline will enable NeoGenomics to replicate this success in the Northeast, strengthening its position in an important and rapidly expanding market.
Dr. Zach Liu, Chief Medical Officer and Laboratory Director at Pathline, expressed excitement about the acquisition, noting that the company’s strong oncology testing capabilities would now be extended to a broader range of patients and healthcare providers under the NeoGenomics umbrella.
“Our team has built a trusted laboratory serving hospitals and oncology practices across the Northeast,” Dr. Liu said. “We look forward to continuing to improve cancer care by expanding access to advanced molecular testing for the patients that we serve under the NeoGenomics banner moving forward.”
This acquisition is expected to bolster NeoGenomics’ growth through incremental revenue contributions from Pathline’s established business. Moreover, NeoGenomics anticipates that operational consolidation efforts and synergies between the two companies will lead to substantial annual cost reductions. These efficiencies are expected to be accretive to adjusted EBITDA (AEBITDA) starting in 2026.
NeoGenomics plans to leverage its differentiated commercial infrastructure to drive increased revenue from the acquired business. The company has a strong track record of operational integration, and with Pathline’s well-established laboratory services, NeoGenomics aims to enhance its ability to support oncologists, healthcare institutions, and patients in the Northeast region with high-quality, efficient diagnostic solutions. The strategic move is also expected to further strengthen NeoGenomics’ national network of laboratories, which are certified to provide full-service sample processing and analysis.
As a premier cancer diagnostics company, NeoGenomics specializes in cancer genetics testing and information services, offering one of the most comprehensive oncology-focused testing menus across the cancer continuum. The company serves a diverse client base that includes oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms, providing innovative diagnostic and predictive testing to assist in cancer diagnosis and treatment.
Headquartered in Fort Myers, Florida, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories across the U.S., along with a full-service sample-processing laboratory in Cambridge, United Kingdom. NeoGenomics is committed to advancing the field of oncology testing through cutting-edge technology and a robust portfolio of services that support healthcare providers in delivering accurate, timely, and effective cancer care.
In summary, the acquisition of Pathline by NeoGenomics marks a significant step forward in the company’s strategy to expand its reach in the Northeast U.S. and enhance its capabilities in molecular and hematology-oncology testing. The combination of Pathline’s established client base and its high-quality pathology services with NeoGenomics’ advanced technologies and national infrastructure is expected to drive growth, improve patient outcomes, and create long-term value for shareholders.
