NeoGenomics Inc. Chief Executive Mark Mallon stepped down Monday as the health-testing company revealed that first-quarter financials will miss guidance and rescinded its forecast for the full year, sending shares down more than 20% in after-hours trading.
reported that Mallon agreed to step down as CEO and from the board of directors by “mutual agreement,” while adding that it “was not the result of any disagreements about strategy with management or the board, inappropriate action by CEO, or any violation of company policy or any accounting irregularity.” The company will establish an “interim office of the CEO” made up of three C-suite executives: Chief Financial Officer William Bonello, Chief Strategy and Corporate Development Officer Douglas Brown, and Chief Culture Officer Jennifer Balliet.
In the same announcement, NeoGenomics revealed that executives expect first-quarter results to come in lower than their previous forecast, and withdrew its annual guidance. The release stated that NeoGenomics may have revenue lower than its forecast, and that Ebitda will be lower than the bottom of previous guidance.
“We thank Mark for his contributions to the company and wish him the best in the future. We are taking immediate steps to improve our business performance,” said Lynn Tetrault, who was elevated to executive chair of the company after previously serving as chair of the board.
NeoGenomics shares have been sliding rapidly since disappointing results and guidance in a November report. The stock has lost more than 60% of its value in the past six months, falling from a market capitalization that at times topped $6 billion to about $2.2 billion at Monday’s close, according to FactSet.
Shares closed Monday with a 1.1% gain at $17.79, then plummeted to less than $14 in the extended session. The stock has not closed a session lower than $14 since 2018, according to FactSet data.