Recently, Genomic Health (GHDX), an oncology based biotech company, presented encouraging data at the American Society of Clinical Oncology (ASCO). It included complete results from its prostate cancer gene identification study, which identified 295 genes strongly associated with recurrence following radical prostatectomy (RP).
On the basis of another deduction from the gene identification study, prostate cancer gene expression provides significant information that helps in deciding the treatment.
Genomic Health is working towards finalizing the analytical methods this year so that a clinical validation study in prostate cancer can be initiated in 2012. The study analyzed RNA from 431 prostate cancer patients who underwent RP within 1987 and 2004. It was observed that out of 732 cancer-related and 6 reference genes assessed, 295 could significantly predict the clinical recurrence-free interval.
Successful development of the test will be beneficial for patients as it will guide the physicians in determining the course of treatment. The test will assist the doctors in exploring various options of active surveillance and immediate prostatectomy, radiation therapy, or the need for adjuvant therapy after initial treatment.
Prostate cancer, the most common type of non-skin cancer found in American men, is the second leading cause of cancer deaths in men.
Currently, Genomic Health derives almost all sales from the Oncotype DX breast cancer test. Although the company has launched the Oncotype DX colon cancer test, it is yet to contribute significantly to the company’s top line. However, the company is conducting various studies to diversify its revenue base.
Meanwhile, the company has secured reimbursement from Clalit, the largest insurer in Israel covering 65% of the population. The company has also secured reimbursements from some selected private insurers in the US.
The year 2010, being the first full year of profit has been significant for Genomic Health. In the fourth quarter, Genomic provided more than 15,180 test results, as against more than 13,340 test results in the comparable period of 2009, representing a growth of 14%. For 2010, the company came out with results for 57,270 tests, up 17% from the previous year.
We are currently ‘Neutral’ on the stock.
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