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Genomic Health Inc. Message Board

  • newdiaginvestor newdiaginvestor Jan 11, 2010 9:08 PM Flag

    Question

    Can someone please explain the difference between what GHDX does and what MYGN does? I ask because they look the same to me but Yahoo does not indicate they are competitors. Thanks.

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    • MYGN makes blood-tests which essentially predict your risk of developing a certain type of (hereditary)cancer. That is it examines your blood for certain genetic markers which put you into a higher or lower risk group for developing, pex., breast-, or colon-cancer.

      GHDX comes in, once a patient already has a cancer. GHDX's oncotype DX test performs genetic epxression analysis tests of different genes on the tumor tissue specimen (not of the blood, as , pex, in MYGN's BRAC-tests). Testing the tumor tissue for certain genetic profiles will allow to predict, if the patient belongs to a high risk group with worse prognosis and more risk for recurring tumor(and hence needing a more agressive therapy), or to a lower risk group.

      MYGN has several products on the market, has a market cap of over 2 Bill USD, sales of something like 350mill USD, is highly profitable, has no debt and tons of cash on its balance sheet.

      GHDX has only one product on the market (and there are competitng products on the market)and has basically only one product in the pipeline; it is cash-flow positive and starting to be profitable, has a market cap of 450mill USD with sales of about 140mill USD, and has a nice balance sheet as well.

      MYGN has an interesting B.O.D with much biochemical scientific and operative knowledge, while GHDX's board is very disappointing, made up solely of VC guys (except for the chairman, who founded Incyte).

      Both companies are currently trading at quite low levels I like both companies, and very recently bought shares in both. However, from what I write here one might say that MYGN is looking more attractive.

      regards

      Dr.John

      • 2 Replies to DrrJohn
      • That was an excellent explanation of the difference between the two companies. My wife had breast cancer surgery two years ago and the physician who was in charge of determining what type of after treatment (chemo/radiation) was necessary asked our permission to send a sample of the tumor tissue to GHDX for them to analysis. He said the test might reveal that she wouldn't need chemo and that our insurance company would probably pay for the test. The good news was that the test indicated she was a low risk so he recommended radiation only. The bad news was that our insurance carrier (BCBS) did not want to pay for the test which runs around $3000. With much help from GHDX and my wife writing to BCBS they finally agreed to pay the bill in full. I think what they realized was that without the test she might have been instructed to do the chemo also which would have been another $25000. I am a firm believer in this test and have since owned this stock several times in the past two years. I recently bought some at 17.15.

      • good post. thanks.

        My thought is that this company may be aquired sometime in the future with all the VC types on board. 2010 will be a big MERGER year in our space.

 
GHDX
26.35-0.16(-0.62%)Jul 9 4:00 PMEDT

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