Medicare Expands Coverage for NeoGenomics' RaDaR ST to Immunotherapy Monitoring
NEO has more than doubled off its 52-week low of $6.41 on light trading volume (0.3× avg).
Summary
CMS has expanded Medicare coverage for NeoGenomics' RaDaR ST assay to include monitoring response to immune-checkpoint inhibitor therapy in late-stage solid tumors. This is the third covered indication for the test, which already includes HPV-negative head and neck cancer and a subset of HR+/HER2- breast cancer. The expansion opens a large addressable market—immunotherapy is standard in lung cancer, melanoma, bladder, and renal cell carcinoma, with 55% and 70% of lung and melanoma cases respectively. CEO Tony Zook calls it a cornerstone of the RaDaR ST launch. Two additional submissions are pending with MolDX, suggesting further coverage decisions ahead. This follows the company's Q2 revenue growth and raised guidance, and the recent DOJ settlement is now behind them.
At the time of this announcement, NEO was trading at $16.45 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $2.2B. The 52-week trading range was $6.41 to $17.46. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.