The clinical services segment of NeoGenomics works with over 2,600 hospitals and cancer centers. It has 10 global locations, processes 1 million oncology tests annually, and serves roughly 500,000 patients each year. In the first nine months of 2019, the segment was responsible for 88% of total revenue. It generated sales of $267 million, marking year-over-year growth of 52%.
The company's growth is supported by smoothing over the data processing workflow for smaller hospitals and clinical teams. Clinicians and researchers send in patient samples, choose tests from the company's comprehensive menu, and receive quality data and data interpretation in return. NeoGenomics even offers data consultation services, which could help the business to retain larger hospital systems as customers, especially as they increasingly move diagnostic processing capabilities in-house.
The pharmaceutical services segment is much smaller, comprising the remaining 12% of total revenue, but it provides intriguing growth potential. NeoGenomics helps companies to discover novel biomarkers, develop new diagnostics, and prepare for regulatory filings. The segment generated revenue of only $34 million in the first nine months of 2019, but reported a backlog of $118 million.
The segment should receive a sizable boost in 2020. NeoGenomics acquired the pharma services division of Human Longevity in early January for $37 million. The assets generated $10 million in revenue in 2019.