improvement in product sales came mainly on the back of double-digit growth in test volume across all areas of the company’s business. The increased adoption of the prostate cancer test and the approval of Oncotype DX by National Institute for Health and Care Excellence’s (NICE) also aided the successful results. NICE recognized Oncotype DX as the sole test to predict recommended chemotherapy benefits for patients with early-stage, hormone receptor-positive, invasive breast
During the reported quarter, international product revenues grew 25% year over year to $10.1 million. Genomic provided 21,790 Oncotype DX test results, up 21%
from the year-ago quarter.
Gross profit increased 11.3% year over year to $55.2 million. However, the recent prostate cancer test launch and impact of sequestration led to a contraction of 93
basis points (bps) in gross margin, which stood at 83.7% in the quarter. On the other hand, with a 19.3% rise in operating expenses to $54.7 million, the company
incurred operating profit of a nominal $463 million, down a significant 87.5% from the prior-year quarter. The rise in operating expenses originated from higher
research and development (up 20.0% to $14.7 million), selling and marketing (up 20.8% to $26.0 million), and general and administrative (up 15.7% to $14.0
Genomic Health exited the third quarter with cash and cash equivalents, and short-term marketable securities of $114.0 million, up from $99.1 million at the end of
NICE in the U.K. issued final guidance recommending Oncotype DX as the only multi-gene breast cancer test to guide chemotherapy treatment decisions. Moreover,
Genomic health established 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.