REDWOOD CITY, Calif., May 6 /PRNewswire-FirstCall/ -- Genomic Health, Inc. today reported financial results and business progress for the quarter ended March 31, 2008.
Total revenue increased to $23.4 million in the first quarter of 2008 compared to $14.1 million in the first quarter of 2007. Product revenue from Oncotype DX was $23.3 million in the first quarter of 2008, an increase of 78 percent compared to $13.1 million in the first quarter of 2007, reflecting continued growth in adoption and reimbursement. Contract revenue comprised the balance of total revenue for the first quarters of 2008 and 2007.
“We are seeing the positive effects of inclusion in ASCO and NCCN treatment guidelines, and additional rigorous clinical studies of our Oncotype DX breast cancer assay. We believe these factors, as well as our ongoing commercial efforts, contributed to substantial increases in adoption, continued positive reimbursement policies, and strong product revenue growth in the first quarter of 2008,” said Randy Scott, Ph.D., Chairman and Chief Executive Officer of Genomic Health. “We believe that physicians are increasingly incorporating Oncotype DX into standard practice for breast cancer treatment.”
Additional First Quarter 2008 Financial Results
During the first quarter of 2008, approximately 50 percent of product revenue was recorded on an accrual basis and recognized at the time the test results were delivered, reflecting established payment patterns from payors with coverage policies and contracts in place.
Cost of product revenue was $5.9 million in the first quarter of 2008, compared to $3.8 million for the first quarter of 2007.
Research and development expenses for the first quarter of 2008 were $6.4 million, compared to $5.2 million for the same period in 2007. Selling and marketing and general and administrative expenses for the first quarter of 2008 were $18.3 million, compared to $12.2 million for the same period in 2007.
Included in first quarter 2008 spending was $2.3 million of stock-based compensation expense, compared to $1.3 million of stock-based compensation expense in the same period in 2007.
Net loss was $6.6 million in the first quarter of 2008, compared to $6.9 million in the first quarter of 2007. Excluding stock-based compensation expense, net loss was $4.3 million in the first quarter of 2008, compared to $5.6 million in the same period in 2007. Basic and diluted net loss per share applicable to common stockholders was $0.24 in the first quarter of 2008, compared to a net loss per share of $0.28 in the first quarter of 2007.
“We continue to expect a narrower net loss for the full year 2008, in the range of $15 to $20 million, while we continue to invest in our product pipeline and commercial and clinical laboratory infrastructure,” said Brad Cole, Chief Financial Officer of Genomic Health.
Cash and cash equivalents and investments at March 31, 2008 were $65.4 million, compared to $68.4 million at December 31, 2007.
Conference Call Details
To access the live conference call today, May 6 at 4:30 p.m. Eastern Time via phone, please dial (877) 356-8064 from the United States and Canada or (706) 758-4314 internationally. The conference ID is 45418205. Please dial in approximately ten minutes prior to the start of the call. A telephone replay will be available beginning approximately one hour after the call through May 13 and may be accessed by dialing (800) 642-1687 from the United States and Canada or (706) 645-9291 internationally. The replay passcode is 45418205.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of the company’s website at http://investor.genomichealth.com. Please connect to the web site at least 15 minutes prior to the call to allow for any software download that may be necessary.
About Genomic Health
Genomic Health, Inc. is a life science company focused on the development and commercialization of genomic-based clinical laboratory services for cancer that allow physicians and patients to make individualized treatment decisions. In 2004, Genomic Health launched its first test service, Oncotype DX(R), which has been shown to predict the likelihood of breast cancer recurrence and the likelihood of chemotherapy benefit in a large portion of early-stage breast cancer patients. The company was founded in 2000 and is located in Redwood City, California. For more information, please visit http://www.genomichealth.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our belief that the use of Oncotype DX is becoming standard practice in breast cancer treatment planning; our plans to broaden the clinical utility of Oncotype DX to include additional genes; our beliefs regarding the reasons for increased usage of Oncotype DX in patients with node-positive breast cancer; the results of studies related to early-stage colon cancer, and our ability to develop a clinical assay for early-stage colon cancer; our ability to identify other genes that may be clinically useful in DCIS; the timing of a validation study for our colon cancer assay; the outcome or success of clinical trials and our expectations regarding potential clinical outcomes; our plans to invest in our product pipeline and our commercial infrastructure; the applicability of clinical study results to actual outcomes; the impact of the inclusion of Oncotype DX in treatment guidelines, additional clinical studies and the Company’s commercial efforts on continuing growth in adoption, reimbursement and revenue growth; and our 2008 financial guidance regarding our expected net loss. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: our ability to increase usage of our test; the risk that we may not obtain or maintain sufficient levels of reimbursement for our existing test and any future tests we may develop; the risks and uncertainties associated with the regulation of our tests by FDA; our ability to compete against third parties; our ability to develop and commercialize new tests; the results of clinical trials; unanticipated costs or delays in research and development efforts; our ability to obtain capital when needed; our history of operating losses; the results of clinical studies and the other risks set forth in our filings with the Securities and Exchange Commission, including the risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2007. These forward-looking statements speak only as of the date hereof. Genomic Health disclaims any obligation to update these forward- looking statements.
NOTE: The Genomic Health logo, Oncotype, Oncotype DX and Recurrence Score are trademarks or registered trademarks of Genomic Health, Inc. All other trademarks and service marks are the property of their respective owners.
CONTACT: Investors, Brad Cole, +1-650-569-2281,
investors@genomichealth.com, or Media, Emily Faucette, +1-650-569-2824,
media@genomichealth.com, both of Genomic Health
Web site: http://www.genomichealth.com/
