NEW YORK (GenomeWeb) ─ Genomic Health reported after the close of the market Wednesday that its fourth quarter revenues rose 8 percent year over year as the firm reported a 12 percent increase in Oncotype DX test results delivered during the quarter.
For the three months ended Dec. 31, Genomic Health's product revenues rose to $74.5 million from $69.1 million in the same period last year.
In an estimate this January, the company said it expected preliminary revenue for the fourth quarter to be between $73 million and $74 million, a 6 percent increase year over year.
Genomic Health reported a net loss of $3.2 million, or $.10 per share, in Q4 2015, compared to a loss of $6.3 million, or $.20 per share, in Q4 2014. The net loss calculation included an $800,000 tax credit in the quarter resulting from a change in fair value of the company's investment in a marketable security.
In the US, the company's testing revenues rose 9 percent to $63.9 million in Q4 2015 from $58.8 million in the same period the previous year. International revenue was $10.6 million in the fourth quarter, up from $10.3 million a year ago. According to the company, international revenue was reduced by $600,000 due to foreign exchange rates, which were influenced by a stronger dollar.
Genomic Health said that it delivered more than 27,730 Oncotype DX test results in the quarter, an increase of 12 percent from the more than 24,770 test results delivered during the same period in 2014.
During a call discussing the company's results, Genomic Health COO and CFO Brad Cole said that reimbursement progress during the quarter for the company's node-positive breast cancer testing included the addition of 11 million covered lives through new policies with insurers including Health Net, and Blue Cross Blue Shield Florida, bringing the total number of covered lives for that test to 161 million.
The company also gained reimbursement for the Oncotype DX breast cancer test in four additional regions of Spain, Cole said, and is awaiting decisions this year in France and Germany that are also expected to increase coverage.
The company's R&D costs in Q4 rose slightly to $12.6 million from $12.5 million, while its SG&A spending rose year over year to $51.4 million from $50.0 million.
For full-year 2015, Genomic Health posted $286.8 million in revenue, a 4 percent increase over $275.7 million for the previous year, slightly exceeding its January estimate of between $285 million and $286 million.
Genomic Health had a net loss of $33.8 million, or $1.04 per share, for FY 2015, compared to a loss of $24.6 million, or $.78 per share, in 2014. Analysts' consensus estimate was for a loss of $1.03 per share.
In the US, the company's testing revenues rose to $245.4 million in 2015 from $230.7 million in 2014. International product revenue fell 8 percent to $41.4 million from $45.0 million the prior year.
The firm delivered more than 107,030 Oncotype DX test results in 2015, a 12 percent increase over the 95,610 results in 2014. Prostate tests delivered in the US grew 75 percent compared to the prior year and represented approximately 8 percent of total test volume in 2015, the company said. International testing volume grew 19 percent compared to the prior year to represent approximately 21 percent of the company's total volume in 2015.
Its R&D spending rose to $59.8 million from $53.1 million, and SG&A costs rose to $207.9 million from $197.5 million the previous year.
Genomic Health ended the year with cash and cash equivalents of $32.5 million, and short-term investments of $62.4 million.
"We expect the strong momentum generated across our business in 2015, combined with new compelling prospective outcomes evidence for our Oncotype DX breast cancer test, robust data supporting emerging markets, and the recent Medicare coverage decision for our prostate cancer test to lead to double-digit test and revenue growth in 2016," Genomic Health Chairman, President, and CEO Kim Popovits said during the call.
Additionally, she said, the company is excited to focus research and development efforts on launching its first liquid biopsy test, OncotypeSEQ, in mid-2016.
The company said it expects total revenues in 2016 of $320 million to $335 million, in line with analyst estimates of $328.8 million. It also expects a net loss of between $12 million and $18 million, or basic EPS net loss of $.37 to $.55.
"We expect our net loss in the first half of the year to be within the full-year loss guidance of $12 million to $18 million and to move toward profitability in the second half of the year," Cole added during the call.
The company's 2016 revenue guidance will be driven by a continuation of "strong growth" across the company's business, Cole said, including "US breast cancer [test] growth in the high single digits spurred by a variety of studies cementing Oncotyped DX's clinical utility."
Additionally, he said, Genomic Health expects its prostate testing to grow to represent more than 10 percent of the company's total test volume in 2016.
The firm expects international test growth in the mid to high teens, supported by an expected full year of reimbursement by the UK's National Health Service.
Overall, Genomic Health said it expects to deliver between 117,500 to 121,000 tests in the upcoming year, representing growth of 10 percent to 13 percent from 2015.
In Thursday morning trade on the Nasdaq, shares of Genomic Health were up around 2 percent at $26.07.