In an attempt to further expand its international footprint,
) has entered into an exclusive agreement with Dubai-based
NewBridge Pharmaceuticals to provide its Oncotype DX test in its
strategic areas of operation. This test will be targeted at
patients with early-stage, estrogen-positive (ER+) invasive breast
cancer, DCIS (ductal carcinoma in situ of the breast), as well as
colon cancer patients with stage II and stage III disease.
NewBridge is a specialty therapeutics company focused on
pharmaceuticals, biologics, diagnostics and medical devices
targeting the AfMET (Middle East, Africa, Turkey & Caspian
regions) region. This agreement can be of immense benefit to a
large patient base as breast cancer is the most common cancer in
women in the Arab region, representing up to 42% of all cancers in
women. These patients would benefit from the Oncotype DX test to
decide on the correct treatment option.
We believe that the agreement with NewBridge Pharmaceuticals is
in sync with Genomic Health's focus to expand in the international
market, having established a strong foothold in the US. Following
its success on the reimbursement front in the international market,
revenues from this region jumped 21% during the second quarter of
2012, representing more than 10% of total product revenues. This
trend is expected to further improve in the second half of the
Securing reimbursement outside the US continues to be the major
factor in driving growth of the international business. With 30 new
international contracts, reimbursement for the Oncotype DX breast
cancer test has been extended to an additional 1.8 million lives in
Ireland, 1 million lives in the Canadian province of Saskatchewan,
and 6.3 million lives in the Catalonia region of Spain. Based on
these contracts, the total number of covered lives for the Oncotype
breast cancer test in the international market exceeded the 80
Armed with several distribution agreements, Genomic Health
provides its Oncotype DX breast cancer tests in 86 countries and
the colon cancer test to patients in 75 countries.
However, the expansion plans involve higher expenses, which in
turn will adversely affect the margin. The company faces tough
competition from players such as
), among others.
GENOMIC HEALTH (GHDX): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
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