REDWOOD CITY, Calif., Oct. 30 /PRNewswire-FirstCall/ -- Genomic Health, Inc. today reported financial results and business progress for the third quarter ended September 30, 2007.
Total revenue increased to $15.9 million in the third quarter of 2007 compared to $7.1 million in the third quarter of 2006. Product revenue from Oncotype DX was $15.8 million in the third quarter of 2007 compared to $6.9 million in the third quarter of 2006. Contract revenue was the balance of total revenue for each of these periods.
"We believe that ASCO's recent inclusion of Oncotype DX in its updated clinical practice guidelines on the use of tumor markers in breast cancer represents another milestone in personalized medicine," said Randy Scott, Ph.D., Chairman and Chief Executive Officer of Genomic Health. "We believe that these guidelines and our progress with physicians, patients and payors indicate that use of Oncotype DX is becoming standard practice in breast cancer treatment planning."
Additional Third Quarter 2007 Financial Results
Cost of product revenue was $4.4 million in the third quarter of 2007, compared to $2.7 million for the third quarter of 2006. Research and development expenses for the third quarter of 2007 were $5.6 million, compared to $3.2 million for the same period in 2006. Selling and marketing and general and administrative expenses for the third quarter of 2007 were $14.0 million, compared to $9.9 million for the same period in 2006. Included in third quarter 2007 operating expenses was $1.6 million of stock-based compensation expense, compared to $0.8 million in the same period in 2006.
Net loss was $7.3 million in the third quarter of 2007, compared to $8.2 million in the third quarter of 2006. Basic and diluted net loss per share applicable to common stockholders was $0.26 in the third quarter of 2007, compared to a net loss per share of $0.33 per share in the third quarter of 2006.
During the third quarter of 2007, approximately 31 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 in place.
Financial Results for Nine Months Ended September 30, 2007
Total revenue for the nine months ended September 30, 2007 was $44.7 million, compared to $20.6 million for the first nine months of 2006. Product revenue for the nine months ended September 30, 2007 was $43.5 million, compared to $18.9 million for the first nine months of 2006. Contract revenue constituted the balance of revenue for the first nine months of 2007 and 2006.
Cost of product revenue for the nine months ended September 30, 2007 was $12.4 million, compared to $7.2 million for the comparable period in 2006. Research and development expenses for the first nine months of 2007 were $16.0 million, compared to $8.7 million in the first nine months of 2006. Selling and marketing, and general and administrative expenses for the first nine months of 2007 were $39.1 million, compared to $26.2 million in the first nine months of 2006. The increase in expenses includes stock-based compensation expense of $4.5 million in the first nine months of 2007 compared to $2.0 million for the same period in 2006.
Net loss for the nine months ended September 30, 2007 was $21.3 million, compared to $19.9 million for the first nine months of 2006. Basic and diluted net loss per share was $0.81 for both the nine months ended September 30, 2007 and the nine months ended September 30, 2006.
Cash and Cash Equivalents
Cash and cash equivalents and investments at September 30, 2007 were $73.9 million, compared to $44.2 million at December 31, 2006.
Conference Call Details
To access the live conference call today, October 30 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 20930721. 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 November 6 and may be accessed by dialing (800) 642-1687 from the United States and Canada or (706) 645-9291 internationally. The replay passcode is 20930721.
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, Oncotype DX(TM), 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 inclusion of Oncotype DX in ASCO's guidelines represents a milestone for personalized medicine; our belief that the use of Oncotype DX is becoming standard practice in breast cancer treatment planning; continued growth in adoption of and reimbursement for our test; the preliminary results and usefulness of the study of Oncotype DX in node-positive patients; 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; the applicability of clinical study results to actual outcomes; and our expectations regarding our SABCS presentations. 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 test 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 and the other risks set forth in our filings with the Securities and Exchange Commission, including the risks set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2007. These forward-looking statements speak only as of the date hereof. Genomic Health disclaims any obligation to update these forward-looking statements
NOTE: Genomic Health, 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/
http://investor.genomichealth.com/
