Genomic Health Announces Third Quarter 2013 Financial Results and Business
Product Revenue Increased 13% Compared to Prior Year
NICE Recommends Oncotype DX® as Only Breast Cancer Test to Predict
Conference Call Today at 4:30 p.m. ET
REDWOOD CITY, Calif., Nov. 5, 2013
REDWOOD CITY, Calif., Nov. 5, 2013 /PRNewswire/ -- Genomic Health, Inc.
(Nasdaq: GHDX) today reported financial results and business progress for the
quarter ended September 30, 2013.
Product revenue was $65.7 million in the third quarter of 2013, compared with
$58.4 million for the third quarter of 2012, an increase of 13 percent. Total
revenue for the third quarter of 2013 increased to $66.0 million, compared
with $58.6 million in the third quarter of 2012.
International product revenue grew by 25 percent to $10.1 million compared to
the same period in 2012, and represented 15 percent of product revenue in the
third quarter of 2013.
Net income in the third quarter of 2013 was $0.5 million, compared with net
income of $3.7 million in the third quarter of 2012. Basic and diluted net
income per share applicable to common stockholders was $0.02 for the third
quarter of 2013, compared with a basic and diluted net income per share of
$0.12 and $0.11, respectively for the same period in 2012.
"Our strong third quarter performance, including 13 percent year-over-year
growth in product revenue, was driven by double digit test volume growth in
all areas of our business," said Kim Popovits, Chairman of the Board, Chief
Executive Officer and President of Genomic Health. "Success in the quarter was
also highlighted by increased adoption of our prostate cancer test and NICE's
recommendation of Oncotype DX as the only test to help clinicians decide
whether to prescribe chemotherapy in patients with early-stage, hormone
receptor-positive, invasive breast cancer."
Additional Third Quarter 2013 and Nine Months Ended September 30, 2013 Results
Total operating expenses for the third quarter of 2013 were $65.5 million,
compared with total operating expenses of $54.9 million for the comparable
period in 2012.
Product revenue for the nine months ended September 30, 2013 was $192.1
million, compared with $173.5 million for the nine months ended September 30,
2012, an increase of 11 percent. Total revenue for the nine months ended
September 30, 2013 was $192.8 million, compared with $174.7 million for the
same period in 2012.
Net loss was $3.4 million for the nine months ended September 30, 2013,
compared with net income of $6.3 million for the nine months ended September
Cash and cash equivalents and short-term investments at September 30, 2013
were $114.0 million, compared with $99.1 million at December 31, 2012.
In the third quarter, more than 21,790 Oncotype DX test results were
delivered, an increase of 21 percent, compared with more than 18,030 test
results delivered in the same period in 2012.
Recent Business Highlights:
Oncotype DX Commercial Progress
oThe National Institute for Health and Care Excellence (NICE) in the United
Kingdom issued final guidance recommending Oncotype DX as the only
multi-gene breast cancer test for use in clinical practice to guide
chemotherapy treatment decisions for patients with early-stage, hormone
receptor-positive, invasive breast cancer.
oEstablished node-positive and ductal carcinoma in situ (DCIS) coverage for
approximately 1.3 million U.S. lives through a contract with a large Blue
Cross Blue Shield state plan.
Medical Meeting Presentations, Publications and Pipeline
oThe Journal of Clinical Oncology accepted for publication positive results
from the third successful validation of the Oncotype DX colon cancer test
in patients with stage II disease and the first validation study in
patients with stage III disease.
oCurrent Medical Research and Opinion published positive results of the
first clinical decision making study of the Oncotype DX colon cancer test
that demonstrate that knowledge of a patient's Recurrence Score® result
changes oncologists' treatment recommendations in 29 percent of cases,
further confirming the clinical utility of using Oncotype DX as an
independent predictor of recurrence in stage II colon cancer.
oDelayed planned initiation of oxaliplatin benefit clinical validation
study in colon cancer due to analytical performance, during the
pre-clinical validation phase, which did not meet Company standards for a
subset of the candidate predictive genes.
oBMC Genomics published positive results from our prostate cancer
analytical validation study demonstrating Oncotype DX is a robust and
reliable assay, ensuring accurate and precise performance of the test from
the very small amounts of cancer tissue in needle biopsies.
oThe 13^th St. Gallen International Breast Cancer Conference Expert Panel,
for the second time, recognized the Oncotype DX breast cancer test for
its unique ability to provide not only prognostic information, but also
predictive information regarding the benefit from chemotherapy for
patients with early-stage endocrine sensitive invasive breast cancer. The
new guidelines were published in the Annals of Oncology.
oPresented results from four studies at the European Cancer Congress
highlighting the value of the Oncotype DX tests for optimizing treatment
in patients with breast and colon cancer.
Conference Call Details
To access the live conference call today, November 5, at 4:30 p.m. Eastern
Time via phone, please dial (877) 303-7208 from the United States and Canada
or +1(224) 357-2389 internationally. Please dial in approximately ten minutes
prior to the start of the call. 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/events.cfm. 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. (NASDAQ: GHDX) is the world's leading provider of
genomic-based diagnostic tests that address both the overtreatment and optimal
treatment of early stage cancer, one of the greatest issues in healthcare
today. The company is applying its world-class scientific and commercial
expertise and infrastructure to lead the translation of massive amounts of
genomic datainto clinically-actionable results for treatment planning
throughout the cancer patient's journey, from screening and surveillance,
through diagnosis, treatment selection and monitoring. Genomic Health's lead
product, the Oncotype DX® breast cancer test, has been shown to predict the
likelihood of chemotherapy benefit as well as recurrence in invasive breast
cancer and has been shown to predict the likelihood of recurrence in ductal
carcinoma in situ (DCIS). In addition to this widely adopted test, Genomic
Health provides the Oncotype DX colon cancer test, the first multi-gene
expression test developed for the assessment of risk of recurrence in patients
with stage II and stage III disease, and the Oncotype DX prostate cancer
test, which predicts disease aggressiveness in men with low risk disease. As
of September 30, 2013, more than 19,000 physicians in over 70 countries had
ordered nearly 400,000 Oncotype DX tests. The company is based in Redwood
City, California with European headquarters in Geneva, Switzerland. For more
information, please visit, www.GenomicHealth.com and follow the company on
Twitter: @GenomicHealth. To learn more about OncotypeDX tests, visit:
www.OncotypeDX.com, www.mybreastcancertreatment.org and
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 ability to undertake or complete additional studies;
the success or results of clinical trials and the timing of such activities;
the applicability of clinical study results to actual outcomes; the ability of
the company's tests to impact clinical practice; and the focus and attributes
of the company's product pipeline. 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:
risks related to the success of the company's colon and prostate cancer tests;
the company's ability to increase usage of its tests; the risk that the
company may not obtain or maintain sufficient levels of reimbursement,
domestically or abroad, for its existing tests and any future tests it may
develop; the company's success retaining current contracts or levels of
reimbursement coverage for its tests; the risks and uncertainties associated
with regulation of the company's tests by the FDA and other regulatory
organizations; the company's ability to compete against third parties; the
company's ability to develop and commercialize new tests; unanticipated costs
or delays in research and development efforts; the success of the company's
next generation sequencing technology; the company's ability to successfully
commercialize its tests outside of the United States; the ability to obtain
capital when needed; the company's 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 June 30, 2013.
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, Recurrence Score and
DCIS Score are trademarks or registered trademarks of Genomic Health, Inc. All
other trademarks and service marks are the property of their respective
GENOMIC HEALTH, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
2013 2012 2013 2012
Product revenues $ 65,732 $ 58,371 $ 192,132 $ 173,459
Contract revenues 258 277 644 1,287
Total revenues 65,990 58,648 192,776 174,746
OPERATING EXPENSES (1)(2):
Cost of product revenues 10,781 9,037 31,285 27,377
Research and development 14,726 12,267 42,189 35,775
Selling and marketing 26,013 21,526 81,587 69,657
General and administrative 14,007 12,107 41,052 35,518
Total operating expenses 65,527 54,937 196,113 168,327
Income(loss) from operations 463 3,711 (3,337) 6,419
Interest income 52 77 174 226
Other income (expense), net 89 33 (2) (112)
Income(loss) before income taxes 604 3,821 (3,165) 6,533
Income tax expense (benefit) 116 109 223 243
Net income (loss) $ 488 $ 3,712 $ (3,388) $ 6,290
Basic net income(loss) per share $ 0.02 $ 0.12 $ (0.11) $ 0.21
Diluted net income (loss) per share $ 0.02 $ 0.11 $ (0.11) $ 0.20
Shares used in computing basic net 30,661 30,580 30,368 30,233
income(loss) per share
Shares used in computing diluted net 32,324 32,578 30,368 32,095
income (loss)per share
Included in operating expenses for the third quarter of 2013 were non-cash
charges of $6.0 million, including $4.4 million of stock-based
(1) compensation expense and $1.6 million of depreciation and amortization
expenses, compared with non-cash charges for the same period in 2012 of
$4.6 million, including $3.4 million of stock-based compensation expense
and $1.2 million of depreciation and amortization expenses.
Included in operating expenses for the nine months ended September 30,
2013 were non-cash charges of $17.6 million, including $12.8 million of
stock-based compensation expense and $4.8 million of depreciation and
(2) amortization expenses, compared with non-cash charges for the same period
in 2012 of $14.8 million, including $10.8 million of stock-based
compensation expense and $4.0 million of depreciation and amortization
GENOMIC HEALTH, INC.
Condensed Consolidated Balance Sheets
As of As of
Cash and cash equivalents $ 39,781 $ 18,005
Short-term marketable securities 74,265 81,060
Accounts receivable, net 25,594 22,253
Prepaid expenses and other current assets 9,314 8,891
Total current assets 148,954 130,209
Property and equipment, net 18,242 14,104
Other assets 9,504 9,421
Total assets $ 176,700 $ 153,734
Accounts payable $ 3,545 $ 4,881
Accrued expenses and other current liabilities 23,960 19,842
Deferred revenues 1,134 374
Other liabilities 2,433 2,311
Stockholders' equity 145,628 126,326
Total liabilities and stockholders' equity $ 176,700 $ 153,734
The condensed consolidated balance sheet at December 31, 2012 has been derived
from the audited consolidated financial statements at that date included in
the Company's Form 10-K for the fiscal year ended December 31, 2012.
SOURCE Genomic Health, Inc.
Contact: Investors: Dean Schorno, Genomic Health, 650-569-2281,
firstname.lastname@example.org or Media: Emily Faucette, Genomic Health,
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