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Genomic Health's Q4 Revenues Increase 27 Percent

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Genomic Health reported after the close of the market Wednesday that its fourth-quarter revenues increased 27 percent, driven by sales of its Oncotype DX breast cancer test.

The Redwood City, Calif.-based pharmacogenomic assay developer brought in total revenues of $39.6 million for the three-month period ended Dec. 31, 2009, compared to revenues of $31.2 million for the fourth quarter of 2008. Product revenue from Oncotype DX was $39.1 million compared to $30.9 million for Q4 2008.

Its revenues fell short of analysts' consensus estimate of $40.35 million.

Genomic Health posted a net loss of $341,000, or $.01 per share, down sharply from $2.3 million, or $.08 per share, the year before. The loss beat analysts' consensus estimate of $.06 per share.

Its R&D spending rose around 9 percent to $8.7 million from $8 million, and its SG&A spending increased 18 percent to $22.7 million from $19.3 million.

For full-year 2009, Genomic Health generated total revenues of $149.5 million, up 35 percent from $110.6 million for FY 2008.

Genomic Health said that it delivered more than 49,030 Oncotype DX test results in 2009, an increase of 24 percent over 39,640 test results delivered in 2008.

The firm's net loss for the year was $9.4 million, or $.33 per share, compared to a net loss of $16.1 million, or $.57 per share, for 2008.

Its R&D spending for the year jumped to $35.7 million from $28.6 million, while its SG&A expenses increased to $90.7 million from $72.3 million.

"In 2009, we achieved our goal of becoming a self-sustaining business as our breast cancer franchise continued to grow and cash from operations turned positive," Kim Popovits, president and CEO of Genomic Health, said in a statement. "In 2010, we plan to build on this success by expanding worldwide use of our Oncotype DX breast cancer test, driving adoption of our second product, the Oncotype DX colon cancer test, and focusing our R&D investment on pipeline expansion."

Last month, Genomic Health launched the colon cancer test, the second in its commercially available tests.

"In 2010, we became a multi-product company with the launch of our colon cancer test; however, this year we expect continued growth in top-line revenue to be driven almost exclusively by increasing adoption of our breast cancer test," Brad Cole, COO and CFO of Genomic Health, said in the statement.

Genomic Health said that it expects full-year 2010 revenues of between $180 million to $190 million, and net income of up to $2 million.

"Looking at near-term milestones for 2010, we plan to focus on three measures: advancing our pipeline, gaining physician and payer support for our colon cancer test, and most importantly building value for shareholders by growing top-line revenue in the global breast cancer market and by delivering a profitable year," Popovits said during the firm's conference call.