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Total revenue increased to $15.9 million in the third quarter of 2007compared to $7.1 million in the third quarter of 2006. Product revenue fromOncotype DX was $15.8 million in the third quarter of 2007 compared to$6.9 million in the third quarter of 2006. Contract revenue was the balance oftotal revenue for each of these periods.
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"We believe that ASCO's recent inclusion of Oncotype DX in its updatedclinical practice guidelines on the use of tumor markers in breast cancerrepresents another milestone in personalized medicine," said Randy Scott,Ph.D., Chairman and Chief Executive Officer of Genomic Health. "We believethat these guidelines and our progress with physicians, patients and payorsindicate that use of Oncotype DX is becoming standard practice in breastcancer treatment planning."
Additional Third Quarter 2007 Financial Results
Cost of product revenue was $4.4 million in the third quarter of 2007,compared to $2.7 million for the third quarter of 2006. Research anddevelopment expenses for the third quarter of 2007 were $5.6 million, comparedto $3.2 million for the same period in 2006. Selling and marketing and generaland administrative expenses for the third quarter of 2007 were $14.0 million,compared to $9.9 million for the same period in 2006. Included in thirdquarter 2007 operating expenses was $1.6 million of stock-based compensationexpense, compared to $0.8 million in the same period in 2006.
Net loss was $7.3 million in the third quarter of 2007, compared to$8.2 million in the third quarter of 2006. Basic and diluted net loss pershare applicable to common stockholders was $0.26 in the third quarter of2007, compared to a net loss per share of $0.33 per share in the third quarterof 2006.
During the third quarter of 2007, approximately 31 percent of productrevenue was recorded on an accrual basis and recognized at the time the testresults were delivered, reflecting established payment patterns from payorswith coverage policies in place.
Financial Results for Nine Months Ended September 30, 2007
Total revenue for the nine months ended September 30, 2007 was$44.7 million, compared to $20.6 million for the first nine months of 2006.Product revenue for the nine months ended September 30, 2007 was$43.5 million, compared to $18.9 million for the first nine months of 2006.Contract revenue constituted the balance of revenue for the first nine monthsof 2007 and 2006.
Cost of product revenue for the nine months ended September 30, 2007 was$12.4 million, compared to $7.2 million for the comparable period in 2006.Research and development expenses for the first nine months of 2007 were$16.0 million, compared to $8.7 million in the first nine months of 2006.Selling and marketing, and general and administrative expenses for the firstnine months of 2007 were $39.1 million, compared to $26.2 million in the firstnine months of 2006. The increase in expenses includes stock-basedcompensation expense of $4.5 million in the first nine months of 2007 comparedto $2.0 million for the same period in 2006.
Net loss for the nine months ended September 30, 2007 was $21.3 million,compared to $19.9 million for the first nine months of 2006. Basic and dilutednet loss per share was $0.81 for both the nine months ended September 30, 2007and the nine months ended September 30, 2006.
Cash and Cash Equivalents
Cash and cash equivalents and investments at September 30, 2007 were$73.9 million, compared to $44.2 million at December 31, 2006.
Conference Call Details
To access the live conference call today, October 30 at 4:30 p.m. EasternTime via phone, please dial (877) 356-8064 from the United States and Canada
