NEW YORK (GenomeWeb News) – Genomic Health yesterday reported more than double-digit growth in its fourth-quarter revenues fueled by increasing adoption of its Oncotype DX breast cancer recurrence test.
Revenues for the quarter ended Dec. 31, 2007, grew by 124 percent to $19.3 million from $8.6 million in the fourth quarter of 2006.
Genomic Health said that all revenues for the quarter were due to Oncotype DX sales. In a conference call to discuss the quarterly results, Kim Popovits, president and COO, said that the company delivered 7,200 tests during the quarter – a 62 percent increase over 4,450 tests delivered in the prior-year period.
Randy Scott, chairman and CEO of Genomic Health, said during the call that one driver for increasing adoption of the test was its inclusion in both the American Society of Clinical Oncology and the National Comprehensive Cancer Network guidelines during the quarter.
Recognition by these organizations “shows that a change is at hand in the way patients with breast cancer are treated,” Scott said during the call. “Physicians and patients are, as standard practice, increasingly incorporating diagnostic tools and molecular information in personalized treatment decisions.”
Popovits noted that another factor driving revenue growth for the company was the addition of several national and regional payors during the quarter, including Blue Cross Blue Shield plans in Florida, Idaho, North Dakota, Louisiana, and Mississippi.
Fourth-quarter R&D spending increased by 43 percent to $6.0 million from $4.2 million in the comparable period of 2006. SG&A expenses, meantime, grew by 36 percent to $15.2 million from $11.2 million in the third quarter of 2006.
Genomic Health posted a net loss of $6.0 million, or $0.21 per share, in the fourth quarter of 2007, compared to a net loss of $9.0 million, or $0.37 per share, in the fourth quarter of 2006.
For the full year ended Dec. 31, 2007, revenues grew by 120 percent to $64.0 million from $29.2 million in 2006. Product revenue was $62.7 million for 2007 compared to $27.0 million in 2006. The company delivered more than 24,450 tests during the year, Popovits said.
R&D expenses for the year grew by 73 percent to $22.1 million from $12.8 million in 2006. SG&A expenses for the full year rose 45 percent to $54.3 million from $37.4 million in 2006.
Net loss for the year was $27.3 million, or $1.02 per share, compared to $28.9 million, or $1.18 per share, in 2006.
As of Dec. 31, 2007, Genomic Health had $68.4 million in cash, cash equivalents, and investments, of which $39.2 million was in the form of cash and cash equivalents.
Genomic Health said it expects revenue of between $100 million and $110 million for full-year 2008, and that it will deliver a total of 34,000 to 37,000 test results.
The company is projecting a net loss of $15 million to $20 million for the year.
During the call, Scott said that the company expects to “broaden the clinical utility” of Oncotype DX during 2008 by expanding its use to patients with node-positive breast cancer. He said the company also plans to begin clinical studies this year that will investigate the use of Oncotype DX in women with ductal carcinoma in situ.