NeoGenomics acquires Pathline to expand oncology testing

USA – NeoGenomics, Inc., a leading provider of oncology testing services, has announced the acquisition of Pathline, LLC, a New Jersey-based laboratory specializing in comprehensive pathology services.

This strategic move aims to strengthen NeoGenomics’ presence in the Northeastern United States, enhancing its service capabilities and accelerating growth in molecular and hematology-oncology testing.

Expanding regional presence

Founded in 2009, Pathline has established a strong client base, serving hospitals, cancer centers, and physician practices, with approximately 98% of its revenue generated from customers in the Northeast.

The acquisition allows NeoGenomics to establish a local presence in this historically underpenetrated but rapidly growing market.

Warren Stone, Chief Commercial Officer at NeoGenomics, highlighted the strategic importance of this expansion, stating, “The acquisition of Pathline presents a strategic opportunity because it brings New York State (NYS) approvals and, when combined with our rapid turnaround times and leading customer experience, will enable us to accelerate growth in what has historically been an underpenetrated region.”

Enhanced service capabilities

Pathline offers a comprehensive suite of subspecialty pathology services, including:

• Histopathology
• Immunohistochemistry
• Cytology
• Cytogenetics
• Flow cytometry
• Fluorescence in situ hybridization (FISH)
• Molecular pathology

Integrating these services into NeoGenomics’ national network is expected to enhance the company’s ability to support oncologists, healthcare institutions, and patients in the Northeast region.

Anticipated growth and synergies

NeoGenomics anticipates that the acquisition will lead to increased revenue and cost efficiencies.

The company expects that operational consolidation efforts and synergies will yield substantial annual cost reductions, becoming accretive to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA) starting in 2026.

Dr. Zach Liu, Chief Medical Officer and Laboratory Director at Pathline, expressed enthusiasm about the merger, stating, “As part of NeoGenomics, we are excited to leverage our expertise and strong oncology testing capabilities to reach more patients and healthcare providers.

He also added, “Our team has built a trusted laboratory serving hospitals and oncology practices across the Northeast, and 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.”