NEW YORK (GenomeWeb News) – Genomic Health today reported double-digit growth in fourth-quarter and full-year 2008 revenues, accompanied by a slimmer net loss.
The company posted a 61 percent increase in revenues for the quarter ended Dec. 31, 2008, to $30.9 million from $19.3 million in the fourth quarter of 2007. Product revenue from the company's Oncotype DX breast cancer assay contributed $30.9 million to fourth-quarter revenues, an increase of 60 percent over $19.3 million in product revenue in the fourth quarter of 2007.
Kim Popovits, president and CEO of Genomic Health, said in a statement that the strong results were "fueled by the expanded clinical utility of the Oncotype DX breast cancer assay, its inclusion in clinical practice guidelines, and additional reimbursement coverage providing access to Oncotype DX for more than 90 percent of US insured lives."
Genomic Health narrowed its fourth-quarter net loss by 61 percent to $2.3 million, or $.08 per share, from $6 million, or $.21 per share, in the fourth quarter of 2007.
The company's total operating expenses rose 29 percent to $33.9 million from $26.1 million in the year-ago period. Fourth-quarter 2008 operating expenses included non-cash charges of $3.8 million, including $2.4 million of stock-based compensation expense, compared with $1.9 million in the comparable period of 2007, and $1.4 million of depreciation and amortization expenses, compared with $1.0 million in the year-ago period.
Fourth-quarter R&D spending increased 32 percent to $8 million from $6 million; selling and marketing expenses rose 15 percent to $11.6 million from $10.1 million; and general and administrative costs grew 37 percent to $7 million from $5.1 million.
For full-year 2008, Genomic Health's revenues increased 73 percent to $110.6 million from $64 million in 2007. Product revenue was $108.7 million in 2008, compared to $62.7 million in 2007.
The company's full-year net loss decreased 41 percent to $16.1 million, or $.57 per share, from $27.3 million, or $1.02 per share, in 2007.
R&D spending rose 30 percent to $28.6 million in 2008 from $22.1 million in 2007; full-year selling and marketing spending increased 28 percent to $46.7 million from $36.5 million; and general and administrative expenses rose 43 percent to $25.6 million in 2008 from $17.8 million in 2007.
Genomic Health had $11.2 million in cash and cash equivalents as of Dec. 31. Including short-term investments, the company's cash position was $56.7 million as of that date.
"In 2009, we intend to continue to make the necessary investments to penetrate the existing breast cancer market, broaden reimbursement to cover node-positive patients, drive international access of Oncotype DX and advance our pipeline, while continuing to move the organization toward profitability," said Brad Cole, chief operating and financial officer of Genomic Health, in a statement.
He added that the company expects the "majority" of its annual net loss to be realized in the first half of the year "as we continue to invest in our product pipeline, US sales force expansion and worldwide commercial infrastructure."
The company said that it expects to deliver between 50,000 and 53,000 test results in 2009, and that it expects full-year 2009 revenues to be in the range of $148 million to $160 million — an increase of 34 percent to 45 percent over 2008 revenues.
Genomic Health projects a 2009 net loss of $7 million to $14 million, an improvement of 13 percent to 57 percent over 2008.