Redwood City-based Genomic Health surprised analysts as its stock, traded on the NASDAQ (GHDX), performed much better than anticipated.
According to a report published on the website peninsulapress.com, Genomic Health rode demand for its Oncotype DX diagnostic cancer test to record profits for the fourth quarter of 2012.
Analysts anticipated an income of about three cents a share. The company’s net income for the quarter was $2 million, or 6 cents per share. Revenue for the quarter was a record $60.4 million, compared to $53.4 million for the same quarter a year ago.
Genomic Health offers diagnostic tests for breast and colon cancer, enabling patients, and their doctors, to consider better treatment options for various cancers. Genomic decoding for treatment planning is an emerging trend in cancer care.
“We delivered strong, full-year 2012 financial results, highlighted by 14 percent revenue growth and record revenue in the fourth quarter,” Genomic Health Chief Executive Officer Kimberly Popovits said.
Earningas are based, in large part, on reimbursement rates for cancer treatments.
Genomic Health spent $24 million this quarter on Sales and Marketing as it looks forward with plans for increasing product awareness in the U.S. for the two-in-five patients that are eligible for the breast and colon cancer tests.
Genomic Health’s stock rose from $27.97 per share to 28.87 in after hours trading in late February.
Accrding to peninsulapress.com, results of a study showed the Oncotype test changed treatment decisions for 45 percent of patients, with 22 percent of patients opting out of chemotherapy treatments. Patients saved an average of $4,200 on treatment costs, while also avoiding the grueling experience of overmedication.
Genomic Health plans to release its third product, the Oncotype DX test for Prostate cancer, this year.