NEW YORK (GenomeWeb News) – Genomic Health said Tuesday after the close of the market that sales for its flagship product, the Oncotype Dx breast cancer assay, swelled 81 percent for the second quarter ended June 30, 2008, and the firm cut its net loss 43 percent year over year.
Genomic Health reported total revenues of $27.8 million, up 89.1 percent from revenues of $14.7 million in the second quarter of 2007.
Sales of Oncotype Dx tallied $26.3 million versus $14.6 million in Q2 2007. Contract revenues rose to $1.5 million from $135,000 year over year.
Randy Scott, chairman and CEO of Genomic Health, said in a statement that the company’s investment in its Oncotype Dx is paying off “not only in our strong revenue growth in tests delivered, but also in the narrowing of our net loss in the second quarter.”
The Redwood City, Calif.-based firm posted a net loss of $4.1 million, or $.15 per share, compared with a net loss of $7.2 million, or $.28 per share, in the same quarter of 2007.
The company’s R&D spending increased 40 percent to $7.3 million from $5.2 million, while its SG&A costs rose 39.5 percent to $18 million from $12.9 million year over year.
“While we work to further reduce our net loss, we will continue to invest in our product pipeline and expand our commercial efforts outside of the United States, which we expect to be important components of future growth,” Scott said in the statement.
Genomic Health finished the quarter with $17.2 million in cash and cash equivalents.
The company also raised its revenue guidance for the full year to between $105 million and $110 million, compared to its earlier projection of a range between $100 million and $110 million.