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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.
“Our agreement with HDC is an important strategic building block,” says NeoGenomics Chairman and CEO Doug VanOort. “With demographic changes in our country driving a significant increase in the prevalence of cancer and the possibilities offered by personalized medicine, it is an ideal time for us to invest even more in new genetic test development.”
Last month, NeoGenomics bumped up its projections for fourth quarter revenues to a range between $12 million and $12.5 million. The firm generated more than $34 million in revenue in 2010.
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