NeoGenomics spends $3M on IP

FORT MYERS -- NeoGenomics Inc. packaged 1.36 million shares of its common stock with $1 million in cash to complete a licensing deal with Health Discovery Corp. (HDC). NeoGenomics shares (symbol: NGNM) opened at $1.43 on Monday, bringing the deal's total value close to $3 million.

HDC's intellectual property includes laboratory testing methods that detect certain types of cancer. Fort Myers-based NeoGenomics also specializes in cancer-focused laboratory procedures.

In addition to the initial cash-plus-stock payment, NeoGenomics will pay HDC an additional $500,000 for every $2 million in revenue realized through the licensing deal, for the first $20 million in new business, a company statement explains. Thereafter, a 6.5% royalty will be paid, and profits will be shared according to future sub-licensing agreements.