NEW YORK (GenomeWeb News) – Genomic Health announced after the close of the market Thursday that it expects to report fourth-quarter revenues of roughly $39.5 million, a 26 percent increase year over year, but below analysts' consensus estimate of $41.6 million.
Genomic Health said that the shortfall was due to a delay in the receipt of payments, which the firm estimates at approximately $2.5 million, from Anthem Insurance Companies and the Blue Card program administered by Blue Shield of California. However, the company said that it expects to receive these payments in early 2010, at which time they will be recognized as revenue.
The firm established a contract with Anthem in August 2009, and said that the contract has required implementation steps that have affected the timing of payments. Genomic Health also noted that Anthem has confirmed its commitment to the contract terms.
In addition, Genomic Health said that it expects its full-year 2009 revenues to be $149.5 million, a 35 percent increase year over year. It said that this figure is in line with its guidance, but it is below analysts' consensus estimate of $151.7 million for the year.
The Redwood City, Calif.-based pharmacogenomics firm said that during 2009 it delivered approximately 49,030 Oncotype DX tests — a 24 percent increase over 2008.
In early Friday trade on the Nasdaq, shares of Genomic Health were down around 11 percent at $16.86.