Neogenomics (NEO) Surges 21.78% as Legal Victory Paves Way for RaDaR ST Assay Commercialization

Neogenomics (NEO) surged 21.78% on Thursday, marking a four-day rally of 36.12% and pushing its share price to a peak not seen since August 2025. Intraday gains briefly hit 25.66%, signaling renewed investor confidence following a pivotal legal development.

The stock’s rebound was driven by a federal court ruling invalidating patent claims by Natera, a rival in oncology diagnostics. The court dismissed Natera’s lawsuit with prejudice, clearing the path for Neogenomics to commercialize its RaDaR ST assay—a molecular residual disease test for detecting post-treatment cancer cells. This assay is now being offered to biopharma clients and submitted to CMS for reimbursement approval, a critical step for broader adoption.

The legal victory removes a key obstacle to market expansion, allowing Neogenomics to scale its MRD testing capabilities. The RaDaR ST assay aligns with growing demand for precision oncology tools, particularly in drug development and treatment monitoring. Analysts noted the ruling reinforces the company’s strategic focus on MRD testing, a segment gaining traction in leukemia and lymphoma care.

While the court did not address Natera’s other patents, Neogenomics’ CEO emphasized the ruling as a “milestone” for its commercialization roadmap. However, the stock remains 45.6% below its 52-week high, reflecting ongoing challenges in the competitive diagnostics landscape. Investors are now watching for regulatory updates and evidence of sustainable revenue growth to validate the recent optimism.

Market sentiment was further bolstered by a broader “risk-on” environment, though analysts caution that long-term success hinges on securing CMS reimbursement and demonstrating operational execution. The ruling underscores the importance of intellectual property in the sector, positioning Neogenomics to strengthen its foothold amid evolving industry dynamics.