NEW YORK (GenomeWeb) – Genomic Health reported after the close of the market Wednesday that its third quarter revenues 11 percent year over year, surpassing analysts' estimates on the top and bottom lines.
In a filing with the US Securities and Exchange Commission, the firm reported total revenues for the three months ended Sept. 30 of $114.4 million compared with $101.3 million in Q3 2018. Wall Street analysts, on average, had expected revenues of $112.2 million for the quarter.
Genomic Health's US product revenues rose 11 percent to $95.3 million from $85.7 million in Q3 2018. US invasive breast cancer testing revenue continued to represent most of those earnings, bringing in $82.4 million compared to $76.7 million in the same period last year. Revenues from its prostate cancer test were $9.4 million, almost all of which came from the US, compared to $6.9 million in Q3 2018.
According to the company, the increases in product revenues resulted primarily from increased adoption of tests, as well as expanded private and Medicare coverage, collection efficiencies, and private payor contract renewals.
The company said that it delivered more than 39,340 Oncotype test results during the quarter compared to about 34,810 in the same period last year, an increase of about 13 percent. US invasive breast cancer and prostate cancer test volume increased by 9 percent and 19 percent, respectively.
International product revenue was up about 22 percent at $19 million compared to $15.5 million in Q3 2018, making up 17 percent of overall product revenue for the quarter. According to Genomic Health, this was primarily due to inroads in the United Kingdom, Canada, and the Asia-Pacific region, though offset by the impact of a stronger US dollar compared to the Euro and British pound. The firm's international testing volume grew 19 percent year over year.
Genomic Health reported net income in Q3 of $18.7 million, or $.48 per share, compared to $12.2 million, or $.32 per share, in the prior year's quarter. Analysts had expected EPS of $.37.
The company's Q3 R&D costs rose 7 percent to $16.5 million from $15.4 million, while SG&A costs went up about 3 percent to $60.1 from $58.5 million.
The firm ended the quarter with cash and cash equivalents of $72 million, and short-term marketable securities of $203.5 million.
Genomic Health is in the process of being acquired by Exact Sciences in a deal worth $2.8 billion.