PR Newswire
REDWOOD CITY, Calif., May 9, 2017
REDWOOD CITY, Calif., May 9, 2017 /PRNewswire/ -- Genomic Health, Inc. (Nasdaq: GHDX) today reported financial results and business progress for the quarter ended March 31, 2017.
Total revenue was $84.0 million in the first quarter of 2017, compared with $80.9 million in the first quarter of 2016, an increase of 4 percent.
U.S. product revenue was $70.6 million in the first quarter of 2017, compared with $70.5 million in the first quarter of 2016. U.S. invasive breast revenue was $64.8 million in the first quarter of 2017, compared with $64.1 million in the first quarter of 2016. U.S. prostate revenue was $3.3 million in the first quarter of 2017, compared with $2.6 million in the first quarter of 2016.
International product revenue was $13.4 million in the first quarter of 2017, compared with $10.4 million in the first quarter of 2016, an increase of 29 percent, and an increase of 33 percent on a constant currency basis.i
"Strong demand for our Oncotype tests in the first quarter of 2017 was due, in part, to growth across our U.S. prostate and global invasive breast business, including four percent sequential growth in U.S. invasive breast cancer. Importantly, for the seventh consecutive quarter, we delivered operating leverage and improved operating income by $6 million in the first quarter," said Kim Popovits, chairman of the board, chief executive officer and president of Genomic Health. "Additionally, last week Palmetto GBA issued a draft local coverage determination that recommends Medicare coverage expansion for the Oncotype DX Genomic Prostate Score to include intermediate-risk patients. Reimbursement progress remains a critical growth driver as we aim to deliver double-digit revenue growth in the second half of the year with continued profitability improvement."
Operating loss for the first quarter of 2017 improved to $2.8 million, compared with $8.8 million for the first quarter of 2016. Net loss was $0.8 million, or 2 cents per share, for the first quarter of 2017, compared with a net loss of $6.4 million, or 19 cents per share, for the first quarter of 2016. Basic and diluted net loss per share was $0.02 for the first quarter of 2017, compared with a basic and diluted net loss per share of $0.19 for the first quarter of 2016.
More than 31,580 Oncotype™ test results were delivered in the first quarter of 2017, an increase of 7 percent, compared with more than 29,510 test results delivered in the same period in 2016. Oncotype DX Breast Recurrence Score® tests delivered in the U.S. grew 1 percent and Oncotype DX® Genomic Prostate Score™ tests delivered in the U.S. grew 40 percent compared with the prior year. International tests delivered grew 17 percent compared with the prior year and represented approximately 25 percent of total test volume in the first quarter of 2017.
Cash and cash equivalents and short-term marketable securities at March 31, 2017 were $94.4 million, compared with $87.7 million at December 31, 2016 excluding the fair value of the company's investment in a marketable security of $9.3 million.
Recent Business Highlights
Conference Call Details
To access the live conference call today, May 9 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. The conference ID is 10366777. 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 website 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 help optimize cancer care by addressing the overtreatment of the disease, one of the greatest issues in healthcare today. With its Oncotype IQ® Genomic Intelligence Platform, the company is applying its world-class scientific and commercial expertise and infrastructure to lead the translation of clinical and genomic big data into actionable results for treatment planning throughout the cancer patient journey, from diagnosis to treatment selection and monitoring. The Oncotype IQ portfolio of genomic tests and services currently consists of the company's flagship line of Oncotype DX gene expression tests that have been used to guide treatment decisions for more than 750,000 cancer patients worldwide. Genomic Health is expanding its test portfolio to include additional liquid- and tissue-based tests, including the recently launched Oncotype SEQ® Liquid Select™. The company is based in Redwood City, California, with international headquarters in Geneva, Switzerland. For more information, please visit, www.GenomicHealth.com and follow the company on Twitter: @GenomicHealth, Facebook, YouTube and LinkedIn.
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 beliefs regarding its future performance, including its guidance; the commercial performance of its tests; the attributes and focus of the company's product pipeline; the risk that the company may not obtain or maintain adequate levels of reimbursement, domestically or abroad, for its existing tests and any future tests it may develop including Medicare coverage for its Oncotype DX Genomic Prostate Score test in favorable intermediate-risk prostate cancer patients; the ability of the company to achieve expanded coverage of reimbursement for its existing tests and the ability of any such expanded coverage to result in additional revenue; the ability of any potential tests the company may develop to optimize cancer treatment; and the ability of the company to develop, commercialize or collaborate to offer additional tests in the future. 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 estimates and assumptions underlying future financial and business performance; the risks and uncertainties associated with the regulation of the company's tests; the results of clinical studies and their impact on reimbursement and adoption; the applicability of clinical study results to actual outcomes; the company's ability to develop and commercialize new tests and expand into new markets domestically and internationally; the risk that the company has all rights necessary to commercialize its tests; the risks of competition; unanticipated costs or delays in research and development efforts; the company's ability to obtain capital when needed and the other risks and uncertainties set forth in our filings with the Securities and Exchange Commission, including our most recent report on Form 10-K for the year ended December 31, 2016. 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, Genomic Health, Oncotype, Oncotype DX, Recurrence Score, DCIS Score, Oncotype SEQ, Oncotype IQ, Genomic Prostate Score and AR-V7 Nucleus Detect are trademarks or registered trademarks of Genomic Health, Inc. All other trademarks and service marks are the property of their respective owners.
_____________________
i Constant currency was calculated by comparing the company's quarterly average foreign exchange rates for the three months ended March 31, 2017 with the comparable three month period in 2016.
GENOMIC HEALTH, INC. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) | |||||||
Three Months Ended |
|||||||
2017 |
2016 |
||||||
(Unaudited) |
|||||||
REVENUES: |
|||||||
Product revenues – United States |
$ |
70,587 |
$ |
70,495 |
|||
Product revenues – Outside of the United States |
13,392 |
10,399 |
|||||
Total revenues |
83,979 |
80,894 |
|||||
OPERATING EXPENSES (1): |
|||||||
Cost of product revenues |
13,672 |
16,153 |
|||||
Research and development |
14,874 |
15,610 |
|||||
Selling and marketing |
41,507 |
39,500 |
|||||
General and administrative |
16,751 |
18,438 |
|||||
Total operating expenses |
86,804 |
89,701 |
|||||
Loss from operations |
(2,825) |
(8,807) |
|||||
Interest income |
158 |
78 |
|||||
Gain on sales of marketable securities |
2,807 |
1,333 |
|||||
Other income (expense), net |
95 |
87 |
|||||
Income (loss) before income taxes |
235 |
(7,309) |
|||||
Income tax expense (benefit) |
1,041 |
(958) |
|||||
Net loss |
$ |
(806) |
$ |
(6,351) |
|||
Basic and diluted net loss per share |
$ |
(0.02) |
$ |
(0.19) |
|||
Shares used in computing basic and diluted net loss per share |
34,009 |
32,900 |
(1) |
Included in operating expenses for the first quarter of 2017 were non-cash charges of $7.5 million, including $5.1 million of stock-based compensation expense and $2.4 million of depreciation and amortization expenses, compared with non-cash charges for the same period in 2016 of $6.7 million, including $4.5 million of stock-based compensation expense and $2.2 million of depreciation and amortization expenses. |
GENOMIC HEALTH, INC. Condensed Consolidated Balance Sheets (In thousands) | |||||||
As of |
As of |
||||||
(Unaudited) |
(1) |
||||||
Cash and cash equivalents |
$ |
40,774 |
$ |
40,404 |
|||
Short-term marketable securities (2) |
53,648 |
56,585 |
|||||
Accounts receivable, net |
34,593 |
35,179 |
|||||
Prepaid expenses and other current assets |
13,079 |
13,796 |
|||||
Total current assets |
142,094 |
145,964 |
|||||
Property and equipment, net |
49,459 |
45,688 |
|||||
Other assets |
10,321 |
9,462 |
|||||
Total assets |
$ |
201,874 |
$ |
201,114 |
|||
Accounts payable |
$ |
5,238 |
$ |
2,864 |
|||
Accrued expenses and other current liabilities |
31,527 |
38,311 |
|||||
Other liabilities |
3,941 |
3,834 |
|||||
Stockholders' equity |
161,168 |
156,105 |
|||||
Total liabilities and stockholders' equity |
$ |
201,874 |
$ |
201,114 |
(1) |
The condensed consolidated balance sheet at December 31, 2016, has been derived from the audited consolidated financial statements at that date included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016. |
(2) |
Included in short-term marketable securities as of December 31, 2016 is $9.3 million of corporate equity securities, representing the Company's investment in Invitae Corporation. All remaining shares of Invitae Corporation were sold during the quarter ended March 31, 2017. |
GHDX-F
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/genomic-health-announces-first-quarter-2017-financial-results-and-reports-recent-business-progress-300454609.html
SOURCE Genomic Health, Inc.
We use cookies to tailor your experience, measure site performance and present relevant offers and advertisements. By clicking ‘Accept’ or any content on this site, you agree that cookies can be placed on your browser. You can view our privacy policy to learn more.
If you would like to get more data, alerts and access to Real Vision videos, join us as an Insider Tracking Advantage Ultra member