NeoGenomics Inc. CEO Mark Mallon described 2021 as “an eventful year” for a leading provider of cancer-focused genetic testing services and global oncology contract research services. The Fort Myers-based company released its fourth-quarter and full-year results Wednesday for the period ended Dec. 31.
“2021 was an eventful year for NeoGenomics as our team successfully navigated a constantly changing environment and took important steps in executing our growth strategy,” Mallon said. “In 2021, our labs processed almost 1.1 million clinical tests, generated revenue from over 1,000 pharma projects and ended the year with $484 million in consolidated revenue representing 16% year over year growth excluding COVID-19 PCR testing revenue. These are strong results given the extraordinary environment.”
Consolidated revenue for 2021 was $484 million, an increase of 9% over 2020. This increase was primarily driven by an increase in clinical testing volumes and growth in the company’s Pharma Services segment, NeoGenomics reports.
In the final quarter of 2021, NeoGenomics’ operating expenses increased by $35 million, or 67%, compared to the fourth quarter of 2020, and included significant operating expenses for the Inivata and Trapelo Health subsidiaries acquired in 2021. Mallon believes the highly strategic acquisitions of Inivata and Trapelo Health will boost NeoGenomcs‘ growth in the years ahead.
Operating expenses in the fourth quarter of 2021 also included legal expenses, higher commissions, higher non-cash stock-based compensation expenses, payroll and payroll-related costs to support the company’s strategic growth initiatives, including Informatics and Pharma, NeoGenomics reports. Net loss for the fourth quarter of 2021 was $42 million compared to net income of $15 million in the fourth quarter of 2020.
Consolidated revenue for the fourth quarter of 2021 of $126 million was flat compared to the fourth quarter of 2020. Excluding COVID-19 PCR testing, consolidated revenue increased year-over-year by 7%. Clinical Services revenue was $104 million, a decrease of about 3% compared to the fourth quarter of 2020. Excluding COVID-19 PCR testing, Clinical Services revenue increased year-over-year by 6%. Clinical testing volumes increased by 2% year-over-year. Average revenue per clinical test increased by 4% to $383 year-over-year. Pharma Services revenue increased by 13% to $22 million compared to the fourth quarter of 2020.
Consolidated gross profit for the fourth quarter of 2021 was $45.3 million, a decrease of 21.2%, compared to the fourth quarter of 2020. This decrease was the result of the termination of COVID-19 PCR testing, amortization of acquired Inivata developed technology intangibles and higher payroll and payroll-related costs, the company reports.
Adjusted EBITDA was negative $10 million compared to $18 million in the fourth quarter of 2020. Adjusted net loss was $17 million compared to adjusted net income of $17 million in the fourth quarter of 2020.
The net loss for 2021 was $8 million compared to net income of $4 million in 2020. Adjusted EBITDA for 2021 was negative $4 million compared to $35 million in 2020. Adjusted net loss for 2021 was $33 million compared to adjusted net income of $17 million in 2020.
