Benzinga | Oct 4, 2021 12:08PM EDT

Guardant Health Will Not Go With NeoGenomics Deal: Bloomberg

* Guardant Health Inc (NASDAQ:GH) has decided not to pursue a potential acquisition of NeoGenomics Inc (NASDAQ:NEO), Bloomberg reported citing people familiar with the matter.

* Related: Guardant Health Weighing NeoGenomics Acquisition: Bloomberg.

* Guardant had hoped to use a tie-up with NeoGenomics to boost its reach into community cancer facilities, typically smaller, local clinics.

* Reasons for the abandoned talks couldn't immediately be learned, the report mentioned.

* Before the talks fell apart, SVB Leerink's analyst Puneet Souda noted that though the combination would be favorable for Guardant and strengthen its pathology business, it would also dilute its growth and margins.

* Price Action: GH stock is trading 2.74% higher at $110.23, and NEO stock is down 7.86% at $44.69 on the last check Monday.