REDWOOD CITY, Calif.,
Aug. 2, 2016 /PRNewswire/
-- Genomic Health, Inc. (Nasdaq: GHDX) today reported
financial results and business progress for the quarter ended
June 30, 2016.
Total revenue was $82.0 million in
the second quarter of 2016 and includes $0.1
million in contract revenue, compared with $70.6 million in the second quarter of 2015, an
increase of 16 percent.
U.S. product revenue was $69.6
million in the second quarter of 2016, an increase of 15
percent, compared with the same period in the prior year.
Prostate test revenue in the U.S. of $2.3 million contributed to approximately 3
percent of the year-over-year growth.
International product revenue was $12.3
million in the second quarter of 2016, compared with
$9.9 million a year ago, an increase
of 24 percent. International revenue on a constant currency basis
increased by 26 percent compared with a year ago.i
More than 29,060 Oncotype DX® test results were
delivered in the second quarter of 2016, an increase of 12 percent,
compared with more than 26,060 test results delivered in the second
quarter of 2015. U.S. invasive breast tests delivered grew 8
percent and prostate tests delivered grew 13 percent compared with
the prior year. International tests delivered grew 23 percent
compared with the prior year and represented approximately 23
percent of total test volume in the second quarter of 2016.
"In the second quarter we delivered double-digit revenue growth
of 16 percent driven by an increase in Oncotype DX tests delivered
across our key markets," said Kim Popovits, Chairman of the Board,
Chief Executive Officer and President of Genomic Health. "In
addition, we expanded our Oncotype IQ™ Genomic Intelligence
Platform with the launch of our first liquid biopsy test, Oncotype
SEQ, for late stage solid tumors, and announced an exclusive
collaboration to commercialize Epic Sciences' AR-V7 liquid biopsy
test for metastatic prostate cancer. These achievements further
reinforce both our strategy and leadership in providing
genomic-based diagnostics to optimize outcomes across the cancer
patient journey."
Operating loss for the second quarter of 2016 improved to
$5.1 million, compared with
$10.8 million for the second quarter
of 2015. Net loss was $6.1 million
for the second quarter of 2016 and included a tax expense in the
quarter of $1.4 million from the
company's investment in a marketable security. Basic and diluted
net loss per share was $0.18 for the
second quarter of 2016, compared with basic and diluted net loss
per share of $0.29 for the same
period in 2015.
Total revenue for the six months ended June 30, 2016 was $162.9
million compared with $138.8
million for the six months ended June
30, 2015, an increase of 17 percent. On a constant currency
basis, revenue increased 18 percent compared with the same period
in the prior year.i
Operating loss improved to $13.9
million for the six months ended June
30, 2016 compared with an operating loss of $25.5 million for the six months ended
June 30, 2015. Net loss was
$12.5 million for the six months
ended June 30, 2016 compared with a
net loss of $18.7 million for the six
months ended June 30, 2015.
Cash and cash equivalents and short-term marketable securities
at June 30, 2016 were $80.9 million excluding the fair value of the
company's investment in a marketable security of $12.7 million, compared with $76.8 million at December
31, 2015 excluding the fair value of the company's
investment in a marketable security of $18.1
million.
2016 Financial Outlook
The company is raising the low end of both revenue and test
guidance for the full-year ending December
31, 2016:
- Raising total revenue to between $325
and $335 million (formerly $320 to
$335 million); and
- Raising Oncotype DX tests delivered range to between 118,500
and 121,000 (formerly 117,500 to 121,000); and
- Maintaining net loss guidance between $12 and $18 million at the mid-point of revenue
guidance, excluding gains of the company's investment in a
marketable security expected to offset costs associated with the
Epic Sciences collaboration, or basic net loss per share of between
$0.37 and $0.55.
Recent Business Highlights
Oncotype DX Commercial Progress
- Established additional private coverage arrangements for the
Oncotype DX Genomic Prostate Score™, bringing the total number of
prostate cancer covered U.S. lives to more than 60 million.
- Launched an enhanced prostate cancer report to reflect an
important new meta-analysis recently published in Urology
that combined the patient-specific data from two Oncotype DX
validation studies to create more precise risk estimates for high
stage, high grade, and adverse pathology associated with the test
results.
- The National Institute for Health and Care Excellence (NICE)
published its latest quality standard guidelines recommending the
use of the Oncotype DX test in eligible patients with early-stage
breast cancer.
- Established NHS reimbursement for the Oncotype DX Breast
Recurrence Score in Northern
Ireland and Scotland.
- Launched Oncotype SEQ Liquid Select, the first non-invasive
liquid biopsy test that the company will deliver through its
Oncotype IQ Genomic Intelligence Platform. Oncotype SEQ is a
blood-based test that uses next-generation sequencing to identify
and assess actionable genomic alterations in a panel of 17 select
genes to inform the treatment of stage IV solid tumors, including
lung, breast, colon, melanoma, ovarian, and gastrointestinal
stromal tumors.
- Entered into an exclusive agreement with Epic Sciences, Inc. to
commercialize its novel AR-V7 liquid biopsy test in the United States through Genomic Health's
world-class commercial channel. The blood-based test detects the V7
variant of the androgen receptor protein (AR-V7) in the nucleus of
circulating tumor cells (CTC) - information that can help guide
treatment selection in patients with metastatic
castration-resistant prostate cancer (mCRPC). The test will be
performed by Epic Sciences at its centralized, CLIA-certified
laboratory in San Diego,
California.
Presentations and Publications
- Received acceptance to present eight abstracts at the European
Society for Medical Oncology (ESMO) 2016 Congress in October
including results from the Oncotype SEQ liquid biopsy analytical
validation study.
- Presented results from seven Oncotype DX studies at the 2016
American Society of Clinical Oncology (ASCO) Annual Meeting.
Results included four new analyses from the National Cancer
Institute (NCI) Surveillance, Epidemiology, and End Results (SEER)
Registry with more than 44,600 breast cancer patients. The SEER
analyses reconfirmed through prospective outcomes data that the
Oncotype DX Breast Recurrence Score result is an accurate predictor
of five-year survival in patients with node-positive and
node-negative disease in contemporary "real-world" clinical
practice and revealed important disparities in the utilization of
the test as well as patient outcomes.
- Nature Partner Journals Breast Cancer published
five-year outcomes results from the NCI SEER Registry that
demonstrated node-negative and node-positive patients with low
Oncotype DX Breast Recurrence Score® results, the vast
majority treated without chemotherapy, had excellent breast cancer
survival.
- The Journal of Clinical Oncology, the official journal
of ASCO, published results from a large study confirming the
ability of the Oncotype DX Breast Recurrence Score results, in
combination with quantitative estrogen-receptor expression, to
accurately predict the risk of late distant recurrence up to 15
years in patients with early-stage, hormone receptor-positive
breast cancer. These findings suggest that Oncotype DX can help
identify which patients are most likely to benefit from extended
hormonal treatment.
- The Journal of Clinical Oncology also published
findings from a separate Oncotype DX study that evaluated the
ability of the Breast Recurrence Score result to provide
information on breast cancer progression and survival in newly
diagnosed stage IV breast cancer patients.
- Results of a European meta-analysis of prospective
decision-impact studies performed in France, Germany, Spain and the UK were accepted for publication
in the European Journal of Cancer. The findings showed that
the Oncotype DX Breast Recurrence Score test had a significant and
consistent impact on adjuvant treatment decisions despite
differences in therapeutic traditions, with an average change rate
of 32 percent, resulting in an overall reduction in the recommended
use of chemotherapy.
- Results from the large SUNRISE clinical validation study of the
Oncotype DX Colon Recurrence Score test were published in the
Journal of Clinical Oncology. Conducted in
Japan, this study confirms that
Oncotype DX accurately predicts recurrence risk in Japanese
patients with stage II and III colon cancer, providing information
beyond conventional factors.
Conference Call Details
To access the live conference
call today, August 2, 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 48903348.
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
cancer, 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 600,000 cancer patients
worldwide. Genomic Health is expanding its test portfolio
to include additional liquid and tissue-based tests. 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 updated 2016 guidance;
the commercial performance of its tests; the attributes and focus
of the company's product pipeline; the ability of any potential
tests the company may develop to optimize cancer treatment; and the
ability of the company to develop and commercialize, and
collaborate with third parties to commercialize, 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 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 commercial success of any
collaborations entered into by the company; 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 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 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 March 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, Oncotype, Oncotype DX,
Recurrence Score, DCIS Score, Oncotype SEQ, and Oncotype IQ 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
and six months ended June 30, 2016
with the comparable periods of 2015.
GENOMIC
HEALTH, INC.
|
Condensed
Consolidated Statements of Operations
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Product revenues –
United States
|
|
$
|
69,556
|
|
$
|
60,692
|
|
$
|
140,051
|
|
$
|
118,409
|
|
Product revenues –
Outside of the United States
|
|
12,330
|
|
9,927
|
|
22,729
|
|
20,362
|
|
Total product
revenues
|
|
|
81,886
|
|
|
70,619
|
|
|
162,780
|
|
|
138,771
|
|
Contract
revenues
|
|
88
|
|
-
|
|
88
|
|
-
|
|
Total
revenues
|
|
81,974
|
|
70,619
|
|
162,868
|
|
138,771
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
(1)(2):
|
|
|
|
|
|
|
|
|
|
Cost of product
revenues
|
|
15,221
|
|
13,033
|
|
31,021
|
|
25,795
|
|
Research and
development
|
|
15,325
|
|
14,595
|
|
31,288
|
|
33,713
|
|
Selling and
marketing
|
|
37,989
|
|
37,243
|
|
77,489
|
|
72,595
|
|
General and
administrative
|
|
18,537
|
|
16,580
|
|
36,975
|
|
32,169
|
|
Total operating
expenses
|
|
87,072
|
|
81,451
|
|
176,773
|
|
164,272
|
|
Loss from
operations
|
|
(5,098)
|
|
(10,832)
|
|
(13,905)
|
|
(25,501)
|
|
Interest
income
|
|
87
|
|
55
|
|
165
|
|
109
|
|
Gain on sales of
marketable securities
|
|
676
|
|
-
|
|
2,009
|
|
-
|
|
Other income
(expense), net
|
|
(150)
|
|
325
|
|
(63)
|
|
(49)
|
|
Loss before income
taxes
|
|
(4,485)
|
|
(10,452)
|
|
(11,794)
|
|
(25,441)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
1,615
|
|
(1,215)
|
|
657
|
|
(6,711)
|
|
Net loss
|
|
$
|
(6,100)
|
|
$
|
(9,237)
|
|
$
|
(12,451)
|
|
$
|
(18,730)
|
|
Basic and diluted net
loss per share
|
|
$
|
(0.18)
|
|
$
|
(0. 29)
|
|
$
|
(0.38)
|
|
$
|
(0. 58)
|
|
Shares used in
computing basic and diluted net loss per share
|
|
33,130
|
|
32,324
|
|
33,015
|
|
32,191
|
|
|
|
(1)
|
Included in operating
expenses for the three months ended June 30, 2016, were non-cash
charges of $7.0 million, including $4.8 million of stock-based
compensation expense and $2.2 million of depreciation and
amortization expenses, compared with non-cash charges for the same
period in 2015 of $5.7 million, including $4.0 million of
stock-based compensation expense and $1.7 million of depreciation
and amortization expenses.
|
|
|
(2)
|
Included in operating
expenses for the six months ended June 30, 2016, were non-cash
charges of $13.8 million, including $9.4 million of stock-based
compensation expense and $4.4 million of depreciation and
amortization expenses, compared with non-cash charges for the same
period in 2015 of $11.5 million, including $8.1 million of
stock-based compensation expense and $3.4 million of depreciation
and amortization expenses.
|
GENOMIC
HEALTH, INC.
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
As
of
June 30,
2016
|
|
As of
December 31,
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
40,660
|
|
$
|
32,533
|
|
Short-term marketable
securities (1)
|
|
52,894
|
|
62,410
|
|
Accounts receivable,
net
|
|
33,611
|
|
37,164
|
|
Prepaid expenses and
other current assets
|
|
11,852
|
|
10,843
|
|
Total current
assets
|
|
139,017
|
|
142,950
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
39,052
|
|
39,746
|
|
Other
assets
|
|
2,020
|
|
1,921
|
|
Total
assets
|
|
$
|
180,089
|
|
$
|
184,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
4,796
|
|
$
|
8,585
|
|
Accrued expenses and
other current liabilities
|
|
34,196
|
|
33,656
|
|
Deferred
revenues
|
|
235
|
|
431
|
|
Other
liabilities
|
|
2,306
|
|
2,410
|
|
Stockholders'
equity
|
|
138,556
|
|
139,535
|
|
Total liabilities and
stockholders' equity
|
|
$
|
180,089
|
|
$
|
184,617
|
|
|
The condensed
consolidated balance sheet at December 31, 2015, 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, 2015.
|
|
|
(1)
|
Included in
short-term marketable securities as of June 30, 2016 and December
31, 2015 was $12.7 million and $18.1 million, respectively, of
corporate equity securities, representing the Company's investment
in Invitae Corporation.
|
GHDX-F
Logo -
http://photos.prnewswire.com/prnh/20130425/SF01493LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/genomic-health-reports-continued-double-digit-growth-in-announcement-of-second-quarter-2016-financial-results-raises-low-end-of-full-year-test-and-revenue-guidance-300307965.html
SOURCE Genomic Health, Inc.