- Product Revenue Increased 34 Percent Compared with 2008 -
- Company Maintains 2009 Guidance -
- Conference Call Today at 4:30 p.m. ET -
REDWOOD CITY, Calif., Aug 4 /PRNewswire-FirstCall/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended June 30, 2009.
Total revenue increased to $36.6 million in the second quarter of 2009 compared with $27.8 million in the second quarter of 2008. Product revenue from the Oncotype DX(R) breast cancer test was $35.2 million in the second quarter of 2009, an increase of 34 percent, compared with $26.3 million in the second quarter of 2008.
Net loss decreased to $3.9 million in the second quarter of 2009 from $4.1 million in the second quarter of 2008. Basic and diluted net loss per share was $0.14 in the second quarter of 2009, compared with basic and diluted net loss per share of $0.15 in the second quarter of 2008.
Cash and cash equivalents and short-term investments at June 30, 2009 were $55.7 million compared with $53.4 million at March 31, 2009 and $56.7 million at December 31, 2008.
"In the second quarter, we grew revenue, narrowed our net loss and increased total cash, in part by expanding Oncotype DX access and coverage to a broader breast cancer population," said Kim Popovits, President and Chief Executive Officer of Genomic Health. "Our continued growth and strong financial position support the substantial investment we are making to develop and commercialize additional tests to personalize the treatment of cancer. Since 2004, we have delivered Oncotype DX to more than 100,000 breast cancer patients and today remain on track to make our new Oncotype DX colon cancer test available early in 2010."
Additional Second Quarter 2009 Financial Results
During the second quarter of 2009, approximately 50 percent of product revenue was recorded on an accrual basis and recognized at the time test results were delivered, reflecting established payment patterns from payors with agreements to pay or contracts in place.
Total operating expenses were $40.5 million, including cost of product revenues of $7.9 million, in the second quarter of 2009, compared with total operating expenses of $32.2 million, including cost of product revenues of $6.9 million, in the second quarter of 2008. Included in second quarter 2009 total operating expenses were non-cash charges of $4.1 million, including $2.5 million of stock-based compensation expense and $1.6 million of depreciation and amortization expenses, compared with $2.3 million of stock-based compensation expense and $1.2 million of depreciation and amortization expenses in the same period in 2008.
Financial Results for Six Months Ended June 30, 2009
Total revenue for the six months ended June 30, 2009 was $70.4 million, compared with $51.2 million for the first six months of 2008. Product revenue for the six months ended June 30, 2009 was $68.6 million, compared with $49.7 million for the first six months of 2008.
Net loss for the six months ended June 30, 2009 was $8.6 million, compared with $10.7 million for the first six months of 2008. Basic and diluted net loss per share was $0.30 for the six months ended June 30, 2009, compared with basic and diluted net loss per share of $0.38 for the first six months of 2008.
2009 Outlook and Financial Guidance
The company is maintaining its previous full-year ending December 31, 2009 guidance as follows:
- Total revenue: $148 million to $160 million;
- Net loss: $14 million to $7 million; and
- Test results delivered: 50,000 to 53,000.
The company expects continued progress in reimbursement to favorably impact product revenue; net loss to narrow in the second half of 2009 as compared with the first half of 2009; and test results delivered to be at the low end of guidance.
Recent Highlights and Accomplishments
Commercial Progress
- More than 11,880 Oncotype DX breast cancer test results delivered in the second quarter of 2009, compared with more than 9,690 test results delivered in the second quarter of 2008, an increase of 23 percent year-over-year.
- Established a contract with Anthem Insurance Companies, Inc., a subsidiary of one of the largest health benefits companies in the United States, effective August 1, 2009.
- Palmetto GBA, the Medicare and Medicaid service contractor for the state of California, extended its coverage for Oncotype DX to include breast cancer patients with one to three positive lymph nodes, effective June 28, 2009.
- Established a contract with Blue Cross Blue Shield Rhode Island, providing in-network benefit coverage for approximately 680,000 lives.
Clinical Progress
