Genomic Health Announces Year-End 2013 Financial Results, Provides 2014 Financial Outlook

   Genomic Health Announces Year-End 2013 Financial Results, Provides 2014
                              Financial Outlook

15% Increase in Full-Year Test Volume; 21% Increase in 4th Quarter Test Volume

11% Increase in Full-Year Revenue; 14% Increase in 4th Quarter Revenue

In-Licensing Agreement with Almac Group Resulted in Incremental $9 Million
Expense in the 4th Quarter

Conference Call Today at 4:30 p.m. ET

PR Newswire

REDWOOD CITY, Calif., Feb. 4, 2014

REDWOOD CITY, Calif., Feb. 4, 2014 /PRNewswire/ --Genomic Health, Inc.
(Nasdaq: GHDX) today reported financial results and business progress for the
quarter and year ended December 31, 2013.

(Logo: http://photos.prnewswire.com/prnh/20130425/SF01493LOGO)

Product revenue was $67.1 million in the fourth quarter of 2013, compared with
$60.0 million for the fourth quarter of 2012, an increase of 12 percent.
Total revenue for the fourth quarter of 2013 increased to $68.8 million,
compared with $60.4 million in the fourth quarter of 2012, an increase of 14
percent.

Product revenue was $259.2 million for the full-year 2013, compared with
$233.5 million in 2012, an increase of 11 percent. Total revenue for the year
ended December 31, 2013 increased to $261.6 million, compared with $235.2
million in 2012, an increase of 11 percent. Contract revenue comprised the
balance of total revenue for each of these periods.

International product revenue increased by 16 percent to $10.1 million
compared to the same period in 2012, and represented 15 percent of product
revenue in the fourth quarter of 2013.

Net loss was $9.4 million for the fourth quarter of 2013, compared with net
income of $2.0 million in the fourth quarter of 2012, and includes the
up-front payment of $9.0 million for the Almac in-licensing agreement.
Excluding the Almac payment, the net loss for the fourth quarter was $0.4
million.

Net loss was $12.8 million for the year ended December 31, 2013, compared with
net income of $8.2 million for the year ended December 31, 2012.

Basic and diluted net loss per share applicable to common stockholders was
$0.30 for the fourth quarter of 2013, compared with a basic and diluted net
income per share of $0.06 for the same period in 2012. Basic and diluted net
loss per share applicable to common stockholders was $0.42 in 2013, compared
with a basic and diluted net income per share in 2012 of $0.27 and $0.26,
respectively.

"Continued advancement of our global business led to 15 percent growth in test
volume and 11 percent revenue growth in 2013," said Kim Popovits, Chairman of
the Board, Chief Executive Officer and President of Genomic Health. "Given the
strength in our core business, the successful launch of our Oncotype DX^®
prostate cancer test, and recent international progress, we plan to accelerate
our investment to further the clinical practice of genomic medicine in
cancer."

Additional Year-End and Fourth Quarter 2013 Financial Results

Total operating expenses for the fourth quarter of 2013 were $77.3 million,
compared with total operating expenses of $58.4 million for the comparable
period in 2012.

Cash and cash equivalents and short-term investments at December 31, 2013 were
$105.4 million, compared with $99.1 million at December 31, 2012.

More than 85,500 Oncotype DX test results were delivered for the year ended
December 31, 2013, an increase of 15 percent, compared with more than 74,520
test results delivered in 2012. In the fourth quarter of 2013, more than
22,720 Oncotype DX test results were delivered, an increase of 21 percent,
compared with more than 18,820 test results delivered in the same period in
2012.

2014 Financial Outlook

The company is providing the following financial guidance for the full-year
ending December 31, 2014:

  oTotal revenue of$278 to $286 million
  oBasic net loss between $0.95 per share and $0.75 per share
  oOncotype DX tests delivered of 98,000 to 102,500

"Given the large prostate cancer opportunity, we are choosing to accelerate
our investment to drive test volume while continuing to strategically invest
in R&D programs for the long-term growth of the company," saidDean Schorno,
Chief Financial Officer ofGenomic Health."Our investment in the prostate
cancer opportunity is the primary driver of the planned loss in 2014."

Of note, included in basic net loss is our estimate of approximately $0.60 per
share of stock compensation expense.

Recent Business Highlights:

International Commercial Progress

  oEstablished breast cancer coverage for an additional 7.5 million lives
    through contracts with insurers in the Czech Republic, Mexico and Peru,
    bringing total covered lives outside the U.S. to more than 115 million.
  oReceived notice of allowance from the U.S. Patent Trade Office for patent
    claims related to the Oncotype DX prostate cancer test algorithm.

Pipeline, Presentations and Publications

  oAnnounced an exclusive in-licensing agreement with Almac Group for
    technology and intellectual property to further develop a multi-gene test
    to predict benefit from DNA damage-based chemotherapy drugs. Such a test
    would be particularly useful for high-risk breast cancer patients who are
    eligible for anthracycline chemotherapy based on their Oncotype DX score.
  oPresented results from multiple studies at the 36^th Annual CTRC-AACR San
    Antonio Breast Cancer Symposium reinforcing the unique value of the
    Oncotype DX test in early-stage breast cancer.
  oPresented results from multiple Oncotype DX colon cancer studies at the
    2014 American Society of Clinical Oncology Gastrointestinal Cancer (ASCO
    GI) Symposium. Presentations highlighted the robust body of clinical
    evidence for the test and its real-life impact on patient and physician
    treatment decisions, underscoring the practice-changing value of the
    Oncotype DX colon cancer test.
  oThe Journal of Clinical Oncology published 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.

Conference Call Details
To access the live conference call today, February 4, 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
December 31, 2013, more than 19,000 physicians in over 70 countries had
ordered approximately 420,000 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
www.myprostatecancertreatment.org.

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 intent to invest in its business and the areas in
which it expects to make such investments, including international expansion,
its product pipeline, driving reimbursement for and adoption of its prostate
cancer test, full year 2014 financial guidance, including expectations
regarding total revenue, the company's basic net loss per share, and the
number of test results delivered; the company's expectations for the
development of and utility its potential test for anthracycline benefit; the
company's belief that it is positioned for diversification and significant
growth; the company's intent to invest in its business, the areas of
investment and the expected results of those investments; 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:
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 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 Form10-Q for the quarter ended September30,
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
owners.



GENOMIC HEALTH, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
                                    ThreeMonthsEnded   TwelveMonthsEnded
                                    December31,         December31,
                                    2013       2012      2013        2012
                                    Unaudited            Unaudited
REVENUES:
Product revenues                    $ 67,060   $ 59,998  $ 259,192   $ 233,457
Contract revenues                   1,759      429       2,403       1,716
Total revenues                      68,819     60,427    261,595     235,173
OPERATING EXPENSES (1)(2):
Cost of product revenues            10,815     9,641     42,100      37,018
Research and development            24,144     13,329    66,333      49,104
Selling and marketing               29,016     23,896    110,602     93,553
General and administrative          13,340     11,546    54,392      47,064
Total operating expenses            77,315     58,412    273,427     226,739
Income(loss) from operations       (8,496)    2,015     (11,832)    8,434
Interest income                     49         70        222         295
Impairment in investments           (643)      -         (643)       -
Other income (expense), net         (157)      54        (158)       (58)
Income(loss) before income taxes   (9,247)    2,139     (12,411)    8,671
Income tax expense                  122        179       346         422
Net income (loss)                   $ (9,369)  $ 1,960   $ (12,757)  $ 8,249
Basic net income(loss) per share   $ (0.30)   $ 0.06    $ (0.42)    $ 0.27
Diluted net income (loss) per       $ (0.30)   $ 0.06    $ (0.42)    $ 0.26
share
Shares used in computing basic net  30,908     30,602    30,512      30,326
income(loss) per share
Shares used in computing diluted    30,908     32,308    30,512      32,152
net income(loss) per share

    Included in operating expenses for the three months ended December 31,
    2013 were non-cash charges of $6.1 million, including $4.6 million of
    stock-based compensation expense and $1.5 million of depreciation and
(1) amortization expenses, compared with non-cash charges for the same period
    in 2012 of $5.8 million, including $4.3 million of stock-based
    compensation expense and $1.5 million of depreciation and amortization
    expenses.
    Included in operating expenses for the twelve months ended December 31,
    2013 were non-cash charges of $23.8 million, including $17.5 million of
    stock-based compensation expense and $6.3 million of depreciation and
(2) amortization expenses, compared with non-cash charges for the same period
    in 2012 of $20.6 million, including $15.1 million of stock-based
    compensation expense and $5.5 million of depreciation and amortization
    expenses.



GENOMIC HEALTH, INC.
Condensed Consolidated Balance Sheets
(In thousands)
                                                As of         As of
                                                              December31,
                                                December 31,  2012
                                                2013
                                                (Unaudited)   (1)
Cash and cash equivalents                       $   33,279    $   18,005
Short-term marketable securities                72,071        81,060
Accounts receivable, net                        29,446        22,253
Prepaid expenses and other current assets       10,196        8,891
Total current assets                            144,992       130,209
Property and equipment, net                     18,290        14,104
Other assets                                    13,752        9,421
Total assets                                    $   177,034   $   153,734
Accounts payable                                $   5,160     $   4,881
Accrued expenses and other current liabilities  23,794        19,842
Deferred revenues                               586           374
Other liabilities                               2,513         2,311
Stockholders' equity                            144,981       126,326
Total liabilities and stockholders' equity      $   177,034   $   153,734

    The condensed consolidated balance sheet at December 31, 2012 has been
(1) 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.

Website: http://www.genomichealth.com
Contact: Investors: Dean Schorno, Genomic Health, 650-569-2281,
investors@genomichealth.com, or Media: Emily Faucette, Genomic Health,
650-569-2824, media@genomichealth.com
 
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