NeoGenomics Laboratories has entered into an agreement with Covance Inc. to provide anatomic pathology and other specialty lab services to support the drug-oriented clinical trials the latter firm conducts in the United States and overseas. The pact between the Florida-based NeoGenomics and the New Jersey-based Covance will be for the purpose of the latter firm’s testing of drugs for oncology care. NeoGenomics performs a variety of oncology-related molecular tests. Assays include gauging the potential progression of cancers such as melanoma, colorectal cancer, and precancerous conditions such as Barrett’s esophagus. The company is also working on a biopsy-free prostate-cancer test it plans to introduce next year. The deal will have Covance establish a laboratory on the premises of NeoGenomics’ Fort Myers, Fla., headquarters, allowing it to access services such as histology, immunohistochemistry, and fluorescence in situ hybridization testing. “The collaboration with NeoGenomics will offer our clients fully integrated anatomic pathology services from sample preparation, staining, and imaging to pathology interpretation by leading pathologists, in an end-to-end manner,” said Paul Kirchgraber, M.D., vice president of laboratory operations and medical affairs for Covance’s laboratory division. He added that the pact will lead to “improved turnaround times critical to oncology clinical trials.” The two […]
NeoGenomics Laboratories has entered into an agreement with Covance Inc. to provide anatomic pathology and other specialty lab services to support the drug-oriented clinical trials the latter firm conducts in the United States and overseas.
The pact between the Florida-based NeoGenomics and the New Jersey-based Covance will be for the purpose of the latter firm’s testing of drugs for oncology care.
NeoGenomics performs a variety of oncology-related molecular tests. Assays include gauging the potential progression of cancers such as melanoma, colorectal cancer, and precancerous conditions such as Barrett’s esophagus. The company is also working on a biopsy-free prostate-cancer test it plans to introduce next year.
The deal will have Covance establish a laboratory on the premises of NeoGenomics’ Fort Myers, Fla., headquarters, allowing it to access services such as histology, immunohistochemistry, and fluorescence in situ hybridization testing.
“The collaboration with NeoGenomics will offer our clients fully integrated anatomic pathology services from sample preparation, staining, and imaging to pathology interpretation by leading pathologists, in an end-to-end manner,” said Paul Kirchgraber, M.D., vice president of laboratory operations and medical affairs for Covance’s laboratory division. He added that the pact will lead to “improved turnaround times critical to oncology clinical trials.”
The two companies will eventually introduce expanded testing services to Covance’s laboratories in Europe and Asia.
“Our oncology-focused genetic and molecular testing services are a perfect complement to Covance’s extensive laboratory services and will allow NeoGenomics to rapidly grow its clinical trials business,” said Douglas VanOort, NeoGenomics’ chief executive officer.
Terms of the deal were not disclosed, but it likely serves as an avenue for building revenues for NeoGenomics at a time when reimbursements from government and commercial payers are under constant pressure. Revenue per assay performed by NeoGenomics has dropped by more than 20 percent over the past three years, prompting the company to painstakingly examine its operations in order to cut out every unnecessary overhead cost.
Takeway: Alliances with drug-testing firms may be a new avenue of business expansion for laboratories whose bottom lines have come under pressure due to reimbursement cuts.
