NeoGenomics, Inc. (NEO) Stock | Company Reaches Agreement to Acquire Clarient Inc.

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NeoGenomics, Inc.  (NYSE: NEO)

 

NeoGenomics, Inc. (NEO), a cancer-focused genetics testing services company yesterday announced that they will be acquiring Clarient Inc. The transaction price included $80 million in cash $100 million in preferred stock and 15 million shares of NEO common stock.

 

NeoGenomics, Inc. CEO Comments

NeoGenomics’ Chairman and CEO, Mr. Douglas VanOort, commented,

“Our vision is to become America’s premier cancer testing laboratory, and this acquisition is a major step forward in achieving that vision.  We have always respected Clarient’s outstanding capabilities, and are very pleased to be able to combine them with our own outstanding service offering.  Hospital, physician, and pathology clients will benefit from our ability to offer the “best of the best” products and services available from each company.  We are particularly pleased to add Clarient’s sizable and fast-growing clinical trial support business to further strengthen our own initiatives in this area.”

 

NEO Technical Analysis

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NEO gapped up in price yesterday to $6.55, up from the prior day’s close of $5.68, which is a 15% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 24th, when it closed at $6.73. Further examination of the stock charts show the stock has been putting in peaks and valleys dating back to July 8th when the stock traded at $5.17. The overall trend seems to be moving up as the peaks are putting in higher highs. The last peak put in a high of $7.22 on September 18th and I would expect the stock to test that price level. KLAC traded on about 5 times the normal daily trading volume in yesterday’s session. The stock did reach pre market highs of $6.70, but it gave back $0.15 at the open, or equivalent to only 2%. For trading purposes, my entry point would have been $6.70 with a possible add on at $7 looking for a run to the last peak high of $7.22. My stop loss would have been $6.50 fearing anything below that and the stock would start to fill in the gap up.   

 

Company Profile

NeoGenomics, Inc., together with its subsidiary, NeoGenomics Laboratories, Inc., operates a network of cancer-focused testing laboratories providing genetic and molecular testing services to hospitals, pathologists, oncologists, urologists, other clinicians and researchers, and other laboratories in the United States. The company performs analyses for hematopoietic cancers, such as leukemia and lymphoma; and solid tumor cancers comprising breast, lung, colon, and bladder cancer. It offers cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; immunohistochemistry testing services to localize proteins in cells of a tissue section; and molecular testing services that focus on the analysis of DNA and RNA, as well as on the structure and function of genes at the molecular level. The company was founded in 2001 and is headquartered in Fort Myers, Florida.  Yahoo Finance

 

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