Over the recent past,
Genomic Health
(
GHDX
), an oncology based biotech company, has been working on several
pipeline programs to reduce dependence on its flagship product,
Oncotype DX breast cancer test. The company to that end initiated a
large validation study of its prostate cancer test in collaboration
with the University of California, San Francisco.
The study hopes to determine whether a multi-gene test can help
distinguish an aggressive disease (that will require surgery) from
a less aggressive one in patients with early-stage prostate cancer.
Complete results are expected to be presented in early 2012. A
positive outcome could lead to the launch of the Oncotype DX
prostate cancer test in 2013. This will enable physicians to better
assess the risk of a particular patient, facilitating the selection
of the appropriate treatment option.
Genomic Health is also progressing with its Next Generation
Sequencing (
NGS
) program with the initiation of clinical development studies. The
studies will examine both RNA-Seq expression and mutation analysis.
This decision comes on the back of a successful clinical outcomes
study for biomarker discovery using NGS for whole transcriptome
profiling of archival FFPE tumor specimens.
The CEO at Genomic Health, Kim Popovits will provide a business
update today at the JP Morgan Healthcare Conference. She will
highlight the company's achievements and its priorities for 2012.
The company's recent achievement includes the successful launch of
the Oncotype DX DCIS Score and MMR colon cancer testing service.
Having established a strong foothold in the US market, Genomic
Health is targeting the international arena. 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 top-line growth
in 2012. We believe favorable data from the various ongoing studies
might help the company in securing reimbursements.
Besides facing increasing competition from players such as
Myriad Genetics
(
MYGN
) and
Cepheid
(
CPHD
), operating expense is on an uptrend due to higher investments in
international expansion, pipeline development and product launches.
Genomic Health currently retains a Zacks #3 Rank (short-term Hold
rating). We also maintain our long-term Neutral recommendation on
the stock.
(We are reissuing this article to correct a mistake. The
original article, issued January 9, 2012, should no longer be
relied upon.)
CEPHEID INC (
CPHD
): Free Stock Analysis Report
GENOMIC HEALTH (
GHDX
): Free Stock Analysis Report
MYRIAD GENETICS (
MYGN
): Free Stock Analysis Report
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