), an oncology based biotech company, will present results from 16
studies at the San Antonio Breast Cancer Symposium in December. The
company has been recording robust revenue growth over the last few
quarters banking on its flagship product, Oncotype DX breast cancer
The test is used for early stage breast cancer patients to
predict the likelihood of cancer recurrence, patient survival
within 10 years of diagnosis and chemotherapy benefit. Although the
Oncotype DX colon cancer test was launched in 2010, it is yet to
make a significant contribution to the top line.
Genomic Health has undertaken several studies to expand the use
of Oncotype DX. The company is studying the utility of the Oncotype
DX test in patients with ductal carcinoma in situ (DCIS).
Preliminary results of the study were presented in May 2011, which
met its primary endpoint.
Encouraged by the positive findings, Genomic Health plans to
make available the Oncotype DX DCIS Score to patients and
physicians on a global basis by the end of 2011. Complete results
from the study will be presented at the upcoming conference.
Successful development of the test will be of immense benefit to a
huge patient population as DCIS is an increasingly detected
subgroup of breast cancer, and more than 45,000 patients are
diagnosed with DCIS each year in the US alone.
The other presentations to be made include clinical research
study for biomarker discovery using next generation sequencing (
) technology in fixed paraffin embedded tissue and multiple
international studies on the impact of Oncotype DX on changing
Going forward, Genomic plans to provide a platform for
whole-genome transcription profiling and mutation analysis for
large clinical studies using fixed paraffin-imbedded tissue. This
plan is based on the expectation that in the future, physicians and
patients will require a comprehensive genomic analysis including
specific mutations and gene expression, for better informed
Having established a strong foothold in the US market, Genomic
Health is targeting the international arena. During the most recent
quarter, revenues from the international market jumped 80% and now
represent 10% of total product revenues. However, securing
reimbursement outside the US is a major deterrent to expanding the
overseas business. The company expects revenue from the
international market to be an important driver of revenue growth in
2012. We believe favorable data from worldwide studies might help
the company in securing reimbursements.
We have a Neutral recommendation on the stock.
GENOMIC HEALTH (
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