neogenomics laboratory company overview 2014-03-11

22
1 NASDAQ: NEO Company Overview Presentation March 2014 Time Matters. Results Count! “Improving Patient Care through exceptional cancer genetic testing services!”

Upload: neogenomics-laboratory-cancer-diagnostics

Post on 10-Jun-2015

896 views

Category:

Health & Medicine


2 download

DESCRIPTION

This presentation contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended; Section 21E of the Securities Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. The words “may”, “would”, “could”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “intend”, “plan”, “goal”, and similar expressions and variations thereof are intended to specifically identify forward-looking statements. All statements that are not statements of historical fact are forward-looking statements. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The risks that might cause such differences are identified in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise the forward looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.

TRANSCRIPT

Page 1: NeoGenomics Laboratory Company Overview 2014-03-11

1

NASDAQ: NEO

Company Overview Presentation

March 2014

Time Matters. Results Count!

“Improving Patient Care through exceptional cancer genetic testing services!”

Page 2: NeoGenomics Laboratory Company Overview 2014-03-11

2 2

Forward-looking Statements

This presentation contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended; Section 21E of the Securities Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. The words “may”, “would”, “could”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “intend”, “plan”, “goal”, and similar expressions and variations thereof are intended to specifically identify forward-looking statements. All statements that are not statements of historical fact are forward-looking statements. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The risks that might cause such differences are identified in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise the forward looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.

Page 3: NeoGenomics Laboratory Company Overview 2014-03-11

3 3

Investment Highlights

• Fast growing cancer genetics lab servicing Oncologists, Pathologists and Hospitals

• Strategic client partnerships created by “Tech-Only” model

• Dynamic, rapidly-growing and consolidating industry

• Industry-leading revenue & test volume growth

• Strong productivity and operating leverage leading to accelerating cash flow and net income

• Strong Management Team with large cap lab experience

Page 4: NeoGenomics Laboratory Company Overview 2014-03-11

4 4

Consistent Historical Growth

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Tests Performed

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,0002

00

4

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Annual Revenue ($, 000s)

Page 5: NeoGenomics Laboratory Company Overview 2014-03-11

5 5

Accelerating Cash Flow & Earnings

($, 000's) 2011 2012 2013

Total Revenue 43,484$ 59,867$ 66,467$

% Growth 26.5% 37.7% 11.0%

Total Gross Margin 19,428 26,836 31,737

Gross Margin % 44.7% 44.8% 47.7%

Sales & Marketing Exp as a % of Rev 16.0% 12.5% 13.1%

Gen & Admin Exp as a % of Rev 28.4% 26.5% 26.2%

R&D Exp as a % of Rev 1.2% 3.8% 3.7%

SG&A Expenses 19,837 25,624 28,563

Total SG&A as a % of Rev 45.6% 42.8% 43.0%

Adjusted EBITDA 2,134$ 5,997$ 8,515$

% Growth NA 181.0% 42.0%

Net Income/(Loss) (1,177)$ 65$ 2,034$

Diluted EPS ($0.03) $0.00 $0.02

Summary Operating Metrics

Avg. Revenue/Test 570$ 522$ 484$

% Change -4.9% -8.4% -7.3%

Avg. Cost of Goods Sold/Test 315$ 288$ 253$

% Change -2.7% -8.6% -12.2%

Page 6: NeoGenomics Laboratory Company Overview 2014-03-11

6 6

Management Team

• Douglas VanOort, Chairman & CEO Operating Partner, Summer Street Capital Partners; Chief Operating Officer, Quest Diagnostics

• Maher Albitar, M.D., Chief Medical Officer & Director of R&D Med. Dir. for Hematopathology & Oncology and Chief of R&D, Quest Nichols Institute; Director of Leukemia and Molecular Laboratory, MD Anderson Cancer Center

• Robert Gasparini, Director & Chief Scientific Officer Director of Genetics, U.S. Labs; Worldwide Marketing Mgr., Ventana Medical Systems; Asst. Director, Prenatal Diagnostic Center (Harvard)

• Steven Jones, Director, EVP – Finance, & Chief Compliance Officer Chairman, Aspen Capital Group; Managing Member, Medical Venture Partners; Vice President, Merrill Lynch Investment Banking

• George Cardoza, Chief Financial Officer CFO, Protocol Global Solutions; Controller, Central Region, Quest Diagnostics

• Robert Horel, Vice President, Sales & Marketing Regional Mgr., US Labs; Product Specialist, Ventana Medical Systems; Pilot, U.S. Navy

• Steven Ross, Chief Information Officer Vice President Technology, Chico’s FAS, Inc.

Page 7: NeoGenomics Laboratory Company Overview 2014-03-11

7 7

NeoGenomics’ Cancer Testing Services

Key Testing Methodologies

Cytogenetics: chromosome analysis

- “Neighborhood view of 46 houses from 1000 feet”

Flow Cytometry & IHC: cell surface marker analysis

- “Single house view from 500 feet”

Fluorescence in-situ Hybridization (FISH): gene analysis - “Door and window view of one house”

Molecular testing: DNA/RNA analysis

-“View of serial number on door lock”

Page 8: NeoGenomics Laboratory Company Overview 2014-03-11

8 8

Customer Targets

Pathologists & Hospital Pathology Groups (about 72% of Revenue)

• Enable community Pathologists to practice using sophisticated tools and tests

• Innovative technical component (TC or “tech-only”) services – Flow, FISH, IHC

• Outstanding Web-based Lab System & extensive training programs

Oncologists & Clinician Groups (about 25% of Revenue)

• Includes Hematologists, Oncologists, Dermatologists, Urologists

• Disease Panels and comprehensive molecular menus

• Increasing Opportunity to service larger practices with Tech-only model

Clinical Trials & Other (about 3% of Revenue)

• Contract research/clinical trial support work for Pharma clients

Page 9: NeoGenomics Laboratory Company Overview 2014-03-11

9 9

Industry Dynamics

& Demographics

• Aging U.S. population and

prevalence of cancer

• Diagnostic testing reduces

healthcare costs and improves

clinical outcomes

• Emergence of molecular diagnostics

• Targeted therapeutics and

companion diagnostics

• Capitalize on new healthcare

paradigm

• Attract New Customers

– Promote key advantages of

“tech-only” model

– Partner with Clinician Offices

• Grow existing customer base

– Sales force productivity

– Increase share of wallet

– Promote product education

– Capitalize on competitor turmoil

• Sustainable revenue growth opportunity

• Significant degree of operating leverage in

the business model

New Products &

Solutions Market Share Gains

• Continue to expand test menu

• Sublicensing of HDC products

– Cytogenetics/Flow/IHC systems

– Prostate/colon/pancreatic Cx Tests

– International opportunities

• Proprietary test development

• Disruptive technology for select solid

tumor cancers

• Seek new R&D partnerships

Superior Financial Model

NeoGenomics Formula for Success

Page 10: NeoGenomics Laboratory Company Overview 2014-03-11

10 10

• Molecular diagnostics transforming lab services

industry and fueling rapid growth

– Molecular diagnostics enable physicians to better

diagnose diseases and predict therapeutic efficacy

• Clinical Benefits: Effective treatment at an early stage

increases patient survival rates

• Healthcare Savings: a) forego spending on ineffective

therapies and b) effective intervention at an early stage

generally lowers overall treatment cost

– Need for companion diagnostics being driven by rising

drug costs and an increase in targeted therapeutics

• Xalkori® (Crizotinib) - Cost of ~$90,000 annually to treat

non-small cell lung cancer. 50 – 61% effective for the ~3%

of the population with certain genetic characteristics

• Diagnostic testing can significantly lower

healthcare costs and improve clinical outcomes

– Diagnostics represents only 2-3% of total healthcare

spend but influence approximately 70% - 80% of

physician decisions

• Cancer prevalence expected to increase as U.S.

population ages

– 77% of all cancers diagnosed are in people age 55 or

older, the fastest growing segment of the US

16%17% 16%

18%

22%

25% 25% 26%

11%13% 12% 13%

16%

19% 20% 20%

0%

5%

10%

15%

20%

25%

30%

1980 1990 2000 2010 2020 2030 2040 2050

Perc

en

t O

f P

op

ula

tio

n

Age 60 and older Age 65 and older

Current

U.S. Population Demographics

Boomer Impact on Cancer Market

Industry Dynamics

Page 11: NeoGenomics Laboratory Company Overview 2014-03-11

11 11

U.S. Cancer Testing Market Size $10-12 Billion

Hematopoietic Cancers Solid Tumor Cancers

Total Testing Market: $3 - 4 Billion $7 - 8 Billion

Est. Genetic Mkt. (TAM) ~$2 - 3 Billion

~$2 - 3 Billion

Patients in Treatment: 850,000 7.0 million

New Diagnoses/Yr.: 150,000 1.45 million

Specimen Types: Bone Marrow (350K/Yr) Per. Blood (150K/Yr)

Lymph Nodes

Tiss. Biopsies (8-10MM) Fine Needle Aspirates

Other Bodily Fluids

Neo Revenue Split: ~80% ~20%

Page 12: NeoGenomics Laboratory Company Overview 2014-03-11

12 12

Cancer Testing Market Characteristics

• Cancer Genetics is high growth segment of lab Industry

- ~15-20% annual test volume growth in genetics testing - ~6-8% annual test volume growth in related AP testing

• Less than 400 Cancer Genetic Labs in the U.S. - 2/3 affiliated with academic institutions - Approximately 20% perform 80% of testing - Only 15-20 labs with national reach

• High pace of consolidation - Recent examples include: Target Acquiror TV/LTM Rev Caris Diagnostics Miraca 3.5x Genoptix Novartis 1.7x Clarient GE Healthcare Svcs 5.8x Genzyme Genetics LabCorp 2.5x

Page 13: NeoGenomics Laboratory Company Overview 2014-03-11

13 13

NV

OR

WA

MT

MN

NE

SD

ND

ID

WY

OK

KS CO UT

TX

NM

SC

FL

GA AL MS

LA

AR

MO

IA

VA

NC

IN

KY

IL

MI WI

PA

WV

VT

ME

RI

NH

AZ

OH DE

MD

NY

CA

NJ

CT

MI

MA

Irvine, CA

18k sf

Nashville, TN

7k sf

Ft. Myers, FL

45k sf States sending specimens in 2013

Tampa, FL

5k sf

A Growing Commercial & Facility Footprint

Page 14: NeoGenomics Laboratory Company Overview 2014-03-11

14 14

2011

4 molecular tests

3 FISH

FL – IHC menu

2012

10-color Flow Cytometry

Implemented State-of-the-art MolDx platform in lieu of Kits

28 new Molecular Assays

Proprietary method for increasing sensitivity of Sanger sequencing

7 NeoTYPE MolDx Panels

New Aperio Digital Image Analysis

SVM for FISH (Patent App)

Barrett’s Esoph. FISH (Patent App)

NeoARRAY/SNP Cytogenetics

Internalized 99% of send-outs

2013

40 new Molecular tests

Add’l NeoTYPE Panels

Next Generation Sequencing (48 genes)

ROS1 FISH

NeoSITE Melanoma FISH

Plasma/Urine-based Prostate Test (Patent App)

SVM-based Cytogenetics Analysis System

SVM-based Automated FISH Analysis System v2

Accelerating Pace of Innovation

Page 15: NeoGenomics Laboratory Company Overview 2014-03-11

15 15

Solid Tumor Assays* Hematopoietic Assays*

More than 80 New Assays Launched in 2012 & 2013

Molecular Assays:

1. IDH1 & IDH2 Mutation Analysis

2. c-KIT Mutation Analysis

3. PIK3CA Mutation Analysis

4. NRAS Mutation Analysis

5. TP53 Mutation Analysis

6. NeoARRAY SNP/Cytogenetic Profile

7. KRAS Mutation Analysis

8. BRAF Mutation Analysis

9. EGFR Mutation Analysis

10. Microsatellite Instability Analysis

11. NeoTYPE Breast Profile

12. NeoTYPE Colorectal Profile

13. NeoTYPE Gastric Profile

14. NeoTYPE Lung Profile

15. NeoTYPE Solid Tumor (Other) Profile

16. TPMT Genotyping

17. UGT1A1 Genotyping

18. Kit/PDGFRa Mutation Analysis

19. HRAS Mutation Analysis

20. PTEN Mutation Analysis

21. HOXB13 Genotyping

22. GNAS Mutation Analysis

23. MLH1 Promoter Methylation Analysis

24. MGMT Promoter Methylation Analysis

FISH/ISH Assays:

1. ISH – Kappa ISH

2. ISH – Lambda ISH

3. NeoSITE Barrett’s Esophagus FISH

4. ROS1 FISH

5. NeoSITE Melanoma FISH

6. 1p/19q Deletion FISH Test

Molecular Assays:

1. BCR-ABL1 Translocation, t(9;22)

2. ABL1 Kinase Domain Mutation Anal

3. IgVH Mutation Analysis

4. FLT3 Mutation Analysis

5. NPM1 Mutation Analysis

6. JAK2 V617F Mutation Analysis

7. JAK2 Exon 12-14 Mutation Anal

8. BCL2 Translocation, t(14;18)

9. BCL1 Translocation, t(11;14)

10. MPL Mutation Analysis

11. MPN Reflex Panel

12. DNMT3A Mutation Analysis

13. RUNX1-RUNX1T1 (AML1-ETO)

Translocation, t(8;21)

14. SF3B1 Mutation Analysis

15. B-Cell Gene Rearrangement

16. T-Cell Gene Rearrangement

17. CBFB/MYH11 Translocation, inv(16)

18. PML-RARA Translocation, t(15;17)

19. CEBPA Mutation Analysis

20. WT1 Mutation Analysis

21. NeoTYPE CLL Prognostic Profile

22. NeoTYPE AML Prognostic Profile

23. ETV6-RUNX1 (TEL-AML1)

Translocation, t(12;21)

24. CARD11 Mutation Analysis

25. CD79B Mutation Analysis

26. MYD88 Mutation Analysis

27. RUNX1 Mutation Analysis

31. NOTCH1 Mutation Analysis

32. EZH2 Mutation Analysis

33. Chimerism/DNA Fingerprinting

Analysis

34. TET2 Mutation Analysis

35. CBL Mutation Analysis

36. ASXL1 Mutation Analysis

37. PTPN11 Mutation Analysis

38. CSF3R Mutation Analysis

39. PTPN11 Mutation Analysis

40. STAT3 Mutation Analysis

41. ETV6 Mutation Analysis

42. NeoTYPE Lymphoma Profile

43. NeoTYPE MDS/CMML Profile

44. NeoTYPE Spliceosome Profile

FISH/ISH Assays:

1. NHL FISH Panel (Revised)

2. MYC/IgH t(8;14)

3. CLL FISH Panel (Revised)

4. MDS FISH Panel (Revised)

5. MPN FISH Panel (Revised)

6. AML FISH Panel (Revised)

7. Eosinophilia FISH Panel

8. IGH/MAFB FISH

9. PTEN FISH

BOLD = Multi-assay tests customizable

to meet client needs (assays may also be

ordered individually).

* Certain assays may be useful in both solid

tumor and hematopoietic cancers. Each

assay listed in area of primary use.

Page 16: NeoGenomics Laboratory Company Overview 2014-03-11

16 16

• Expansion of Sales Team with seasoned Professionals

• Growth of molecular assays, panels and Next Gen Sequencing

• Recent expansion in FISH and advanced flow cytometry

• New Image Analysis/Immunohistochemistry Platform

• Exclusive strategic alliance with Covance for Clinical Trials

• Proprietary NeoSCORE Prostate Cancer and other proprietary tests

• M&A Opportunities

Key Growth Drivers Over the Next 3 Years

Page 17: NeoGenomics Laboratory Company Overview 2014-03-11

17 17

Increasing Margins Despite Lower Average Unit Prices

(1) Productivity calculated as the average number of lab tests completed per month per laboratory FTE. (2) The expiration of the Medicare Technical Component (TC) Grandfather Clause took effect on 7/1/12 and resulted in an ~11% YoY Reduction in Avg Rev/Test.

47.3% 48.4% 46.1% 44.7% 44.6% 43.9% 44.5% 44.8% 45.2%

47.1% 47.2%

41.5% 43.2% 46.3% 45.9% 48.4%

50.0%

-23.4%

56.5%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Q

4 0

9

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Gross Margin % Cum Change in Avg Rev/Test(2) Cum Change in Productivity(1)

Page 18: NeoGenomics Laboratory Company Overview 2014-03-11

18 18

Operating Cost per Test & Adj. EBITDA Margin

Cost Management & Operating Leverage

$723

$642 $642 $671

$649 $618

$576 $565 $555

$531 $512 $526 $482 $478 $464 $466 $439

-12%

-1% -2%

-5%

0% -1%

5% 6%

8%

12%

12%

6%

10% 11% 12% 13%

15%

-15%

-10%

-5%

0%

5%

10%

15%

20%

$0

$100

$200

$300

$400

$500

$600

$700

$800

Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413

Cogs Cost/Test G&A Net of R&D Cost/Test S&M Cost/TestR&D Cost/Test Total Cost/Test Adj EBITDA Margin %

Page 19: NeoGenomics Laboratory Company Overview 2014-03-11

19 19

Quarterly Financial Information

($, 000's) Q4 12 * Q1 13 * Q2 13 * Q3 13 Q4 13

Total Revenue 14,893$ 15,657$ 15,603$ 16,884$ 18,323$

% Growth (YoY) 15.5% 3.3% -0.1% 18.9% 23.0%

Total Gross Margin 6,434 7,246 7,157 8,171 9,163

Gross Margin % 43.2% 46.3% 45.9% 48.4% 50.0%

Sales & Marketing Exp 1,692 1,931 1,971 2,336 2,487

General & Administrative Exp 4,097 4,175 4,064 4,334 4,823

Research & Development Exp 448 835 616 340 649

Total SG&A (Incl R&D) Expenses 6,237 6,942 6,651 7,011 7,959

SG&A as a % of Rev 41.9% 44.3% 42.6% 41.5% 43.4%

Net Income/(Loss) (113)$ 3$ 273$ 900$ 858$

Diluted EPS ($0.00) $0.00 $0.01 $0.02 $0.02

Adjusted EBITDA 1,439$ 1,794$ 1,825$ 2,163$ 2,733$

Summary Operating Data

% Growth in Tests Performed (YoY) 35.3% 19.1% 12.7% 19.1% 27.8%

Avg. Revenue/Test 488$ 488$ 480$ 501$ 470$

Avg. COGS/Test 277$ 262$ 260$ 258$ 235$

* YoY comparisons impacted by a reduction in revenue of $1.3 MM/Qtr as a result of the expiration of the TC Grandfather Clause.

Page 20: NeoGenomics Laboratory Company Overview 2014-03-11

20 20

Key Financial Information

Recent Share Price (3/11/14): $ 3.46

Common Shares Outstanding: 49.1 M

Current Market Cap: $168.0 M

Fully Diluted Shares: 55.8 M

52 Week Low/High: $2.05/$4.69

Avg. Daily Trading Volume (3 Mos): 283,766

Page 21: NeoGenomics Laboratory Company Overview 2014-03-11

21 21

NeoGenomics Summary

• Emerging leader in fastest-growing segment of lab testing industry

• Robust competitive advantages and product portfolio

• Strong Management Team with outstanding industry experience

• Accelerating profitability driven by growth and operating leverage

• Recent Guidance(1): Q1 2014(2) FY 2014(2)

Revenue ($, MMs) $18.8 - $19.3 $73.0 - $77.0

EPS $0.01 – $0.02 $0.05 - $0.07

(1) Guidance is before factoring any potential impacts from a negative resolution of the issues re the National Correct Coding Initiative FISH edits. See 8-K filed on 2/19/2014 for additional information on this topic.

(2) NeoGenomics preliminarily estimates that a negative resolution of the NCCI FISH edits issue would reduce revenue by approximately $3 million and net income by approximately $0.04 per share in FY 2014, with the impact more heavily concentrated in the first half of the year. Q1 revenue and EPS would be reduced by approximately $1.0 million and $0.02/share in the event of a negative resolution.

Page 22: NeoGenomics Laboratory Company Overview 2014-03-11

22 22

Implied 2014 Physician Fee Schedule Rates

Based on our 24% Medicare payer mix through the first 9 months of 2013, we expect the Medicare 2014 PFS Rates to have less than a 3% impact to total revenue (1).

CPT Proc Code Procedure Description

National

Unadj Rate

2011

National

Unadj Rate

2012

National

Unadj Rate

2013

2014 w/

Interim SGR

Fix (1)(2)

2014 vs

2013 %

change

88184 FLOW 1ST MARKER 83.92$ 82.71$ 88.80$ 87.77$ -1.2%

88185 FLOW EACH ADDL MARKER 50.29$ 50.04$ 54.10$ 53.73$ -0.7%

88189 FLOW INTERP 16 OR MORE MARKERS 103.29$ 102.45$ 106.49$ 110.69$ 3.9%

88367 FISH AUTOMATED PER PROBE 256.18$ 264.13$ 258.23$ 255.77$ -1.0%

88367-TC FISH AUTOMATED PER PROBE TECH 195.36$ 203.89$ 198.35$ 193.08$ -2.7%

88367-26 FISH AUTOMATED PER PROBE INTERP 60.82$ 60.25$ 59.88$ 62.69$ 4.7%

88368 FISH MANUAL PER PROBE 219.83$ 221.24$ 232.04$ 232.49$ 0.2%

88368-TC FISH MANUAL PER PROBE TECH 157.65$ 159.98$ 170.46$ 167.65$ -1.6%

88368-26 FISH MANUAL PER PROBE INTERP 62.18$ 61.27$ 61.58$ 64.84$ 5.3%

88360 MORPHOLOGY, EACH ANTIBODY MANUAL 123.33$ 120.49$ 127.25$ 130.04$ 2.2%

88360-TC MORPHOLOGY TECH, EACH ANTIBODY MANUAL 71.01$ 69.44$ 74.85$ 75.23$ 0.5%

88360-26 MORPHOLOGY INTERP, EA ANTIBODY MANUAL 52.32$ 51.06$ 52.40$ 54.81$ 4.6%

88342 IMMUNOHISTOCHEMISTRY 103.92$ 105.52$ 115.34$

88342-TC IMMUNOHISTOCHEMISTRY TECH 62.86$ 64.67$ 73.15$

88342-26 IMMUNOHISTOCHEMISTRY INTERP 41.11$ 40.85$ 42.19$

G0461 IMMUNOHISTOCHEMISTRY (1st Stain) 103.92$ 105.52$ 115.34$ 88.48$ -23.3%

GO461-TC IMMUNOHISTOCHEMISTRY TECH (1st Stain) 62.86$ 64.67$ 73.15$ 57.67$ -21.2%

G0461-26 IMMUNOHISTOCHEMISTRY INTERP (1st Stain) 41.11$ 40.85$ 42.19$ 30.81$ -27.0%

G0462 IMMUNOHISTOCHEMISTRY (Add'l Stain) 103.92$ 105.52$ 115.34$ 68.42$ -40.7%

GO462-TC IMMUNOHISTOCHEMISTRY TECH (Add'l Stain) 62.86$ 64.67$ 73.15$ 55.88$ -23.6%

G0462-26 IMMUNOHISTOCHEMISTRY INTERP (Add'l Stain) 41.11$ 40.85$ 42.19$ 12.54$ -70.3%

(1) Assumes no other Physician Fee Schedule (PFS) rule changes or limited coverage determinations for 2014.

(2) Calculated using a 2014 CMS Conversion Rate of 35.8228 as enacted in the 'Pathway for SGR Reform Act of 2013’ on December 26, 2013.

This SGR Fix is only in effect to 3/31/14 unless extended further by Congress.