REDWOOD CITY, Calif., Feb. 3 /PRNewswire-FirstCall/ -- Genomic Health, Inc. today reported financial results for the year ended December 31, 2009, which included 35 percent revenue growth compared with 2008, and the company becoming cash flow positive.
Total revenue for the fourth quarter of 2009 increased to $39.6 million, compared with $31.2 million in the fourth quarter of 2008. Product revenue from the Oncotype DX(R) breast cancer test was $39.1 million in the fourth quarter of 2009, an increase of 26 percent, compared with $30.9 million in the fourth quarter of 2008. As previously reported, total revenue was affected by a delay in the receipt of approximately $2.5 million in payments which are to be recognized as revenue upon receipt. The net loss in the fourth quarter of 2009 decreased to $0.3 million, from $2.3 million in the fourth quarter of 2008. Basic and diluted net loss per share applicable to common stockholders was $0.01 in the fourth quarter of 2009, compared with a basic and diluted net loss per share of $0.08 in the fourth quarter of 2008.
Total revenue for the year ended December 31, 2009 increased to $149.5 million, compared with $110.6 million in 2008. Product revenue was $146.6 million for the year ended December 31, 2009, compared with $108.7 million in 2008, an increase of 35 percent. Contract revenue comprised the balance of total revenue for each of these periods. The net loss for the year ended December 31, 2009 decreased 42 percent to $9.4 million from $16.1 million in 2008. Basic and diluted net loss per share applicable to common stockholders was $0.33 for the year ended December 31, 2009, compared with a $0.57 basic and diluted net loss per share in 2008.
Cash and cash equivalents and short-term investments at December 31, 2009 were $57.4 million, compared with $58.9 million at September 30, 2009 and $56.7 million at December 31, 2008.
"In 2009, we achieved our goal of becoming a self-sustaining business as our breast cancer franchise continued to grow and cash from operations turned positive, proving that innovative and proprietary R&D and clinically driven value-based pricing combined with a patient-centric service has delivered results," said Kim Popovits, President and Chief Executive Officer of Genomic Health. "In 2010, we plan to build on this success by expanding worldwide use of our Oncotype DX breast cancer test, driving adoption of our second product, the Oncotype DX colon cancer test, and focusing our R&D investment on pipeline expansion."
Additional Fourth Quarter and Year-End 2009 Financial Results
Approximately 55 percent of product revenue was recorded on an accrual basis and recognized at the time the test results were delivered during the fourth quarter of 2009, reflecting established payment patterns from payors with agreements to pay or contracts in place.
Total operating expenses for the fourth quarter 2009 were $39.9 million including cost of product revenues of $8.5 million, compared with total operating expenses of $33.9 million, including cost of product revenues of $7.3 million for the comparable period in 2008. Included in operating expenses were non-cash charges of $4.3 million, including $2.6 million of stock-based compensation expense and $1.7 million of depreciation and amortization expenses in the fourth quarter of 2009, compared with non-cash charges of $3.8 million for the same period in 2008.
Total operating expenses for the year ended December 31, 2009 were $158.9 million including cost of product revenues of $32.6 million, compared with total operating expenses of $128.1 million, including cost of product revenues of $27.2 million for the comparable period in 2008. Included in operating expenses were non-cash charges of $16.8 million, including stock-based compensation expense of $10.2 million and $6.6 million of depreciation and amortization expenses in the year ended December 31, 2009, compared with non-cash charges of $14.2 million for the same period in 2008.
2010 Outlook and Financial Guidance
"In 2010, we became a multi-product company with the launch of our colon cancer test; however, this year we expect continued growth in top-line revenue to be driven almost exclusively by increasing adoption of our breast cancer test," said Brad Cole, Chief Operating Officer and Chief Financial Officer of Genomic Health. "This year, we intend to continue to leverage our strong financial position with investments in the commercialization of our colon cancer test, global expansion of both franchises and in our ongoing development programs."
The company is providing the following financial guidance for the full-year ending December 31, 2010:
Commercial Progress
Oncotype DX(R) Colon Cancer Test Progress
Product Pipeline
Conference Call Details
To access the live conference call today, February 3, 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 53266653. 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 February 10, 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 53266653.
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((R) )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 launched its Oncotype DX colon cancer test in January 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 2009 fourth quarter and annual results; the company's expectation regarding the timing and receipt of payments which were delayed during the fourth quarter of 2009; the company's beliefs regarding its ability to become profitable in 2010 and to operate its business on a cash flow positive basis; the company's intent to invest in its business and the areas in which it expects to make such investments, including international expansion, its product pipeline and driving adoption of its colon cancer test; 2010 financial guidance, including expectations regarding the number of test results delivered, revenue, and net income; the company's belief that its 2009 results prove that its business model delivers results; the company's expectation that growth in top-line revenue will be driven almost exclusively by increasing adoption of its breast cancer test; the outcome, success or results of clinical trials and the timing of such activities; the applicability of clinical study results to actual outcomes; the company's belief that the colon cancer Recurrence Score result may also predict recurrence risk in stage III colon cancer; and the ability of the company's tests to impact clinical practice. 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; our success retaining current contracts or levels of reimbursement coverage for our tests; 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 September 30, 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.
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/
