NEW YORK (GenomeWeb) – Genomic Health reported after the close of the market Tuesday that its third quarter revenues increased 6 percent year over year, driven by a 17 percent jump in tests delivered in the quarter.
The Redwood City, California-based molecular diagnostics firm reported total revenues of $73.6 million for the three months ended Sept. 30 compared to $69.1 million for the third quarter of 2014. It beat analysts' consensus estimate of $73.1 million.
Product revenues derived from the US jumped to $63.1 million from $57.8 million year over year while sales outside the US dropped to $10.5 million from $11.3 million. Genomic Health said that international sales were negatively impacted by around $900,000 due to foreign exchange.
The firm said that it delivered more than 27,820 Oncotype DX test results in the third quarter compared to more than 23,700 results delivered in Q3 2014.
"We delivered domestic revenue growth approaching double-digits, an 11 percent increase in our US breast cancer tests delivered, inclusive of a 65 percent increase in DCIS, more than 70 percent growth in prostate cancer tests delivered, and 30 percent test growth outside the United States, representing the second quarter in a row of significant double-digit growth for our international business," Genomic Health Chairman, President, and CEO Kim Popovits said on a conference call following the release of the results.
Genomic Health COO and CFO Brad Cole said on the call that the firm "delivered a record number of prostate cancer tests in the quarter, which increased 72 percent compared with last year. To date, more than 2,350 physicians have used the Oncotype DX prostate test in their treatment decision planning, an increase of more than 250 from last quarter, and nearly double from a year ago."
He noted that the firm began receiving Medicare coverage for its prostate cancer test last month, and during the third quarter it received expanded coverage through a new policy with Highmark Blue Cross and Blue Shield for the Oncotype DX breast cancer test for patients with one to three positive nodes, representing 5 million additional US lives covered.
Cole added that Medicare's recent coverage for low-risk prostate cancer patients, combined with the firm's double-digit test growth in 2015, "should lead to future double-digit revenue growth starting in the fourth quarter."
Genomic Health posted a net loss of $11.8 million, or $.36 per share, for the quarter compared to a loss of $6.3 million, or $.20 per share, for the third quarter of 2014. Analysts, on average, had expected a loss per share of $.18.
Its R&D spending declined 3 percent to $13.5 million from $13.9 million, and its SG&A expenses increased around 5 percent to $51.8 million from $49.1 million.
Genomic Health finished the quarter with $28 million in cash and cash equivalents, and $70 million in short-term marketable securities.
In Wednesday morning trade on the Nasdaq, shares of Genomic Health were up 17 percent at $26.11.