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Health Discovery terminates agreement, pursues legal action against NeoGenomics

Health Discovery Corp. said it was terminating a license agreement with Neogenomics Inc. as a result of a "material breach."

The 2012 license provided for the use of Health Discovery's technology to formulate and commercialize laboratory tests that could diagnose certain types of cancers.

NeoGenomics had paid $1 million in cash and issued 1,360,000 of its shares in upfront payment for the license.

Health Discovery said that NeoGenomics "failed to use best efforts" during the development term of the agreement and did not provide usage report of the technology despite repeated requests.

NeoGenomics is now barred from using the technology or any product and service developed as a result of said technology. Health Discovery said it would pursue legal action against the company and is evaluating potential damages given NeoGenomics' failure to perform its obligations as part of the agreement.