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PR Newswire, 09/2006Newsletter
NeoGenomics also announced that Dr. Frank Yang, M.D., Ph.D, FCAP, has joined the company as its chief hematopathologist. Before joining NeoGenomics, Dr. Yang worked with Dr. Raul Braylan, a legendary authority in flow cytometric analysis of lymphoma and leukemia at the University of Florida. Yang's work experience includes hematopathologist and clinical assistant professor at the University of Florida, chief hematopathologist at the Milwaukee VA Medical Center and laboratory director of the Tomah VA Medical Center in Wisconsin, and numerous other notable assignments. Dr. Yang is also a former research scientist in the field of molecular biology and medical genetics at the Albert Einstein College of Medicine and University of California at San Francisco. Based on this experience, Dr. Yang understands all aspects of modern hematopathology services. Acting Chief Financial Officer Steven Jones said, "The GPS product allows NeoGenomics to address a much larger segment of the oncology testing market, and we believe it will allow us to increase the average revenue per requisition for our oncology testing services. Indeed, in early trials of this new product offering with oncology practices, we have been able to increase the number of tests ordered per requisition by 25-50%, and our average revenue per requisition for these clients has increased by as much as 60%. As a result of our GPS product offering, we anticipate that our customer mix will continue to evolve. In particular, we have begun to attract additional higher-margin oncology practices, and we are seeing a decline in volume from some of our lower margin reference laboratory customers due to a perception that our new GPS product conflicts with some of their own services. This evolution of our customer mix has been expected and, given the level of interest in the GPS product to date, we expect that any lost revenues from reference lab customers will be more than offset by new higher margin oncology clients in fairly short order. Overall, we are excited about the impact that we believe the GPS product will have on our growth rate in FY 2007. As we announced with our Q2 06 earnings release we plan to issue revised upward guidance for FY 2007 with our Q3 06 earnings release."
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