Nov. 4, 2009 (PR Newswire) -- REDWOOD CITY, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended September 30, 2009.

Total revenue increased to $39.5 million in the third quarter of 2009 compared with $28.1 million in the third quarter of 2008. Product revenue from the Oncotype DX® breast cancer test was $38.9 million in the third quarter of 2009, an increase of 39 percent, compared with $28.1 million in the third quarter of 2008.

Net loss decreased to $502,000 in the third quarter of 2009 from $3.0 million in the third quarter of 2008. Basic and diluted net loss per share was $0.02 in the third quarter of 2009, compared with basic and diluted net loss per share of $0.11 in the third quarter of 2008.

Cash and cash equivalents and short-term investments at September 30, 2009 were $58.9 million, compared with $55.7 million at June 30, 2009 and $56.7 million at December 31, 2008.

"In the third quarter, we significantly grew our business, improved gross margins and increased the reimbursement per test resulting in a narrowed net loss," said Kim Popovits, President and Chief Executive Officer of Genomic Health. "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. 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."

Additional Third Quarter 2009 Financial Results

During the third 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 $40.1 million, including cost of product revenues of $8.3 million, in the third quarter of 2009, compared with total operating expenses of $31.4 million, including cost of product revenues of $7.1 million, in the third quarter of 2008. Included in third quarter 2009 operating expenses were non-cash charges of $4.2 million, including $2.5 million of stock-based compensation expense and $1.7 million of depreciation and amortization expenses, compared with $2.3 million of stock-based compensation expense and $1.3 million of depreciation and amortization expenses in the same period in 2008.

Financial Results for Nine Months Ended September 30, 2009

Total revenue for the nine months ended September 30, 2009 was $110.0 million, compared with $79.3 million for the first nine months of 2008. Product revenue for the nine months ended September 30, 2009 was $107.5 million, compared with $77.8 million for the first nine months of 2008.

Net loss for the nine months ended September 30, 2009 was $9.1 million, compared with $13.8 million for the first nine months of 2008. Basic and diluted net loss per share was $0.32 for the nine months ended September 30, 2009, compared with basic and diluted net loss per share of $0.49 for the first nine months of 2008.

Upcoming Event

The Company will provide additional detail on research, development and commercial efforts in a business and scientific briefing to be held on Thursday, November 12, 2009 beginning at 12:30 p.m. ET.

Recent Highlights and Accomplishments

Commercial Progress

--  Delivered more than 12,600 Oncotype DX breast cancer test results in the
third quarter of 2009, compared with more than 10,220 test results
delivered in the third quarter of 2008, an increase of 23 percent
year-over-year.
--  Began accepting all appropriate breast cancer tumor samples, regardless
of immunohistochemistry (IHC) estrogen receptor (ER) status, to
facilitate the assessment of ER status by reverse
transcription-polymerase chain reaction (RT-PCR) testing.
--  Established two additional distribution agreements in South America. The
Company has received samples from more than 50 countries to date.
--  Initiated breast cancer clinical utility trials of Oncotype DX with
clinical researchers in Japan and Spain.
--  Launched a large adjuvant breast cancer trial with clinical researchers
in Germany which, like TAILORx in the United States, uses the Oncotype
DX assay to select patients for study randomization and treatment.

--  Established a contract with Blue Cross Blue Shield of Arizona providing
in-network benefit coverage for approximately 1 million lives.

Peer-Reviewed Publications and Medical Meeting Presentations

--  Presented two studies at the 2009 ASCO Breast Symposium.