) announced the results of 2 studies, which were conducted to
determine RNA-Sequencing and Mutation Identification, in the 14th
Annual Advances in Genome Biology and Technology (AGBT) meeting
According to the results, DNA strand-of-origin information can
help refine the process of identification of prognostic
biomarkers, while gene mutations related to tumors can be tested
with archival fixed paraffin embedded tumor (FPET) tissue, thus
allowing an advanced tumor analysis process.
The company strongly believes that these findings will further
strengthen its advanced next generation sequencing (NGS) platform
and accelerate the development of future tests that combines both
whole transcriptome profiling and mutation analysis.
Genomic Health is a global cancer company with focus on
advanced molecular diagnostics. The company is focused on the
development and commercialization of genomic-based clinical tests
for cancer diagnosis that enables physicians to make
individualized treatment decisions.
The company's lead product, the Oncotype DX breast cancer test
is used to predict the likelihood of cancer recurrence in ductal
carcinoma in situ (DCIS), patient survival within 10 years of
diagnosis and chemotherapy benefit for early stage breast cancer
patients. In addition, the company provides Oncotype DX colon
cancer test, the first multi-gene expression test for the
assessment of risk of recurrence in patients with stage II and
stage III disease.
Although the Oncotype DX colon cancer test is yet to make any
significant contribution to the top line, the company is
optimistic about Oncotype growth. As per Dec 2012 data, 10,000
doctors across 65 countries ordered 335,000 Oncotype DX
The company has come a long way from being a one-product
U.S.-focused company in 2007, when 24,450 tests were delivered
(with 22% penetration), to the present when more than 66,000
Oncotype DX test results (with 16% growth) were delivered in
Genomic also diversified its offering with the launch of the
Oncotype DX DCIS Score at the end of 2011. Banking on several
strategies directed toward an increasing acceptance of the test,
Genomic is well placed to capitalize on the huge market
Although, lower-than-expected invasive breast cancer test
volume in the domestic market, fewer patient visits as well as
higher competition led Genomic to reduce its expectation to
deliver tests, we are encouraged with the progress made by the
company on the reimbursement front.
Last year, Genomic established additional reimbursements in
Greece, France, Kuwait and Spain. This led to a sizeable increase
in the number of lives covered for the Oncotype DX breast cancer
test to more than 90 million worldwide. Going forward, we expect
the growth trend to continue.
The stock carries a Zacks Rank #3 (Hold). However, other
stocks in the medical device sector, carrying a Zacks Rank #1
(Strong Buy), like
Medical Action Industries Inc.
Given Imaging Ltd.
) appear impressive.
CYBERONICS INC (CYBX): Free Stock Analysis
GENOMIC HEALTH (GHDX): Free Stock Analysis
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MEDICAL ACTION (MDCI): Free Stock Analysis
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