Genomic Health Inc.
) made available its lead pipeline candidate Oncotype DX prostate
cancer test to physicians and their patients. This comes as a
major boost to the company as its effort to launch the test by
the second quarter of 2013 (ending Jun 30, 2013) paid off.
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The launch of the prostate cancer test, developed in
collaboration with University of California, San Francisco (UCSF)
and Cleveland Clinic was based on the disclosure of positive
clinical validation study at the 2013 American Urological
Association (AUA) Annual Meeting in San Diego. Besides clinical
elements such as PSA and biopsy Gleason Score, the results from
the clinical validation study affirm that Genomic's test can
predict the aggressiveness of the cancer in patients.
As a prognostic tool to assess prostate cancer aggressiveness,
Genomic's Oncotype DX prostate cancer test estimates the level of
expression of 17 genes across four biological pathways. The
outcome of the tests is reported as Genomic Prostate Score (GPS),
ranging from 0 to 100. In conjunction with other clinical
factors, the GPS can estimate the patient's risk before the
treatment intervention. Further, the outcome of the test can
improve standards of care by helping patients to choose the right
treatment on the basis of individual risk assessment.
Also, the Oncotype DX prostate cancer test is the most innovative
multi-gene test to oversee treatment selection using the prostate
needle biopsy sample taken before the prostate is removed. This
helps low-risk patients erode invasive treatments like radical
prostatectomy or radiation. Additionally, most patients can evade
unnecessary treatment and its potential side effects and consider
active surveillance treatment plan with routine check up.
We are encouraged by the timely launch of Genomic's Oncotype DX
prostate cancer test. The commercialization of the prostate
cancer test will allow the company to serve a global market size
of more than $1.6 billion.
We believe that with the commercial launch, GPS will create a
sizable impact on the market as prostate cancer is among the most
common types of cancers. The prostate cancer test is expected to
be a major revenue driver for Genomic, which heavily relies on
its Oncotype DX breast cancer test. The company strongly believes
that the launch of the prostate cancer test will further
strengthen its advanced next generation sequencing (NGS) platform
and accelerate the development of future tests.
The stock carries a Zacks Rank #3 (Hold). While we have a neutral
stance on Genomic, other players such as
), carrying Zacks Rank #1 (Strong Buy) and
Myriad Genetics Inc
) carrying Zacks Rank #2 (Buy) are expected to do well.