REDWOOD CITY, Calif., Aug 4 /PRNewswire-FirstCall/ -- Genomic Health, Inc. 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:
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
Clinical Progress
Product Pipeline
Patents
Conference Call Details
To access the live conference call today, August 4, at 4:30 p.m. Eastern Time via phone, please dial (877) 361-8830 from the United States and Canada or +1(706) 679-8297 internationally. The conference ID is 22377396. 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 August 11, and may be accessed by dialing (800) 642-1687 from the United States and Canada or +1 (706) 645-9291 internationally. The replay passcode is 22377396.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of the company’s web site 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 the Oncotype DX breast cancer test, which has been shown to predict the likelihood of chemotherapy benefit as well as recurrence in early-stage breast cancer. In addition to the widely adopted Oncotype DX breast cancer test, Genomic Health is preparing to launch its Oncotype DX colon cancer test in early 2010. The company was founded in 2000 and is located in Redwood City, California. For more information, please visit 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 the company’s belief that its growth and financial position support the company’s investment in the development and commercialization of additional tests to personalize the treatment of cancer; the company’s expectations regarding the commercialization of a test for colon cancer and the proposed timing of commercialization; the company’s expectation that improved pricing yields will favorably impact product revenue; the company’s expectations regarding full year 2009 total revenue, net loss and test results delivered; the outcome, success or results of clinical trials; and the applicability of clinical study results to actual outcomes. 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 tests; the risk that we may not obtain or maintain sufficient levels of reimbursement for our existing tests 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; 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; the applicability of clinical study results to actual outcomes; and the other risks set forth in the company’s filings with the Securities and Exchange Commission, including the risks set forth in the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009. 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.
SOURCE Genomic Health, Inc.
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, Inc.
Web site: http://www.genomichealth.com/
