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Genomic Health's New Positive Data to Boost Test Uptake

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Genomic Health, Inc. recently presented new data supporting the efficacy of the Oncotype DX Breast Recurrence Score test with respect to improving chemotherapy recommendations in patients with early-stage breast cancer with or without lymph node involvement. The results were presented at the 16th St.Gallen International Breast Cancer Conference in Vienna.

Per the results, the Oncotype DX Breast Recurrence Score test helps in identifying patients who have higher chances of deriving benefits from chemotherapy. The test thus helps enhance the quality of health care, improve survival chances and cut down wastage of healthcare resources.

Genomic Health presented an updated analysis of the Clalit Health Services registry, which had applied the Recurrence Score cut point determined by the landmark Trial Assigning IndividuaLized Options for Treatment (Rx) or TAILORx study. The company also presented results from a study based on an analysis of data from the Surveillance, Epidemiology, and End Results registry program of the National Cancer Institute. Results of two decision impact studies from the U.K. and the Czech Republic were also presented.

Market Trends Optimistic

According to a report by GBI Research, the global breast cancer therapeutics market is estimated to reach a worth of $17.2 billion by 2021, at a CAGR of 7.3%. Considering the solid market prospects, we believe the latest development is a timely one and will boost the uptake of the test.

Oncotype DX Breast Recurrence Score Test Developments

So far, Genomic Health has been witnessing healthy progress with regard to establishing coverage for its Oncotype DX breast cancer test. During the fourth quarter, the company delivered more than 35,530 Oncotype test results, up 11% year over year. Notably, presentation and publication of the TAILORx study results continued to drive test volumes, which rose 9% on a year-over-year basis.

There were other factors which contributed to U.S. invasive breast cancer revenue growth. Increased CMS pricing as a result of the implementation of PAMA reimbursement at a higher level than the 2016 invasive breast rate has been contributing to test volumes.

The company saw a series of developments for its Oncotype DX Breast Recurrence Score tests. In this regard, Genomic Health recently announced that the National Institute for Health and Care Excellence (“NICE”) in the United Kingdom has issued an updated guidance recommending the Oncotype DX Breast Recurrence Score test for use in clinical practice to guide adjuvant chemotherapy treatment decisions for patients with early-stage breast cancer. Further, NICE has included patients with micrometastases in its recommendations.

Furthermore, Genomic Health recently announced results from several Oncotype DX Breast Recurrence Score presentations. Genomic Health along with the NSABP Foundation announced the publication of supportive results from a new analysis of the NSABP-led B-20 study.

Stock Performance Solid

In the past year, Genomic Health has outperformed its industry. The stock has gained 129.8% against the industry’s 5.4% decline.

 

Zacks Rank & Other Key Picks

Genomic Health currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader medical space are Penumbra, Inc. (PEN - Free Report) , Amedisys, Inc. (AMED - Free Report) and Hologic, Inc. (HOLX - Free Report) .

Penumbra’s long-term earnings growth rate is expected at 20.9%. The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amedisys’ long-term earnings growth rate is projected at 19.8%. The stock carries a Zacks Rank #2.

Hologic’s long-term earnings growth rate is estimated at 8.9%. The stock also carries a Zacks Rank of 2.

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