NEW YORK (GenomeWeb News) – Genomic Health reported after the close of the market on Wednesday that its third-quarter revenues rose 41 percent on increased sales of its Oncotype Dx breast cancer test.
The Redwood City, Calif.-based firm brought in total revenues of $39.5 million for the three-month period ended Sept. 30, up from $28.1 million the year before. Its product sales, which came exclusively from the sale of the Oncotype Dx test, rose 39 percent year over year to $38.9 million from $28.1 million.
Genomic Health's net loss for the quarter was trimmed significantly to $502,000, or $.02 per share, from $3 million, or $.11 per share, for the third quarter of 2008. Analysts, on average, had expected a loss of $.10 per share.
Its R&D spending increased 32 percent to $9.1 million from $6.9 million, while its SG&A spending rose 31 percent to $22.6 million from $17.3 million.
Genomic Health finished the quarter with $16.7 million in cash and cash equivalents, and $42.2 million in short-term investments.
"We are committed to strengthening our business through continued investment in the worldwide expansion of the Oncotype DX breast cancer test and the anticipated launch of our Oncotype DX colon cancer test early next year," Genomic Health President and CEO Kim Popovits said in a statement. "In addition, as we near break even, we are focused on driving longer-term growth by leveraging our rigorous development approach and commercial infrastructure to bring additional products to cancer patients."
"We do anticipate higher spending in coming quarters, with the San Antonio Breast Cancer Symposium in December 2009 and continued launch preparations related to delivering our Oncotype Dx colon cancer test in early 2010," Brad Cole, Genomic Health's COO and CFO, said during a conference call.
He noted that the firm had added 20 sales people early in 2009 to push adoption of Oncotype Dx. Cole said that as a result of those additions test revenues increased across its base of established customers and new customers as well.
Genomic Health maintained its previous revenue guidance of between $148 million and $160 million.
In early Thursday trade on the Nasdaq, shares of Genomic Health were up 5 percent at $20.50.