Genomic Health Announces Third Quarter 2009 Financial Results and Business Progress

Genomic Health Announces Third Quarter 2009 Financial Results and Business
Progress
-- Product Revenue Increased 39 Percent Compared with Third Quarter 2008; Net
Loss Narrowed --

REDWOOD CITY, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Genomic Health, Inc.
(Nasdaq: GHDX) today reported financial results and business progress for the
quarter ended September 30, 2009.

Total revenue increased to $39.5 million in the third quarter of 2009 compared
with $28.1 million in the third quarter of 2008. Product revenue from the
Oncotype DX® breast cancer test was $38.9 million in the third quarter of
2009, an increase of 39 percent, compared with $28.1 million in the third
quarter of 2008.

Net loss decreased to $502,000 in the third quarter of 2009 from $3.0 million
in the third quarter of 2008. Basic and diluted net loss per share was $0.02
in the third quarter of 2009, compared with basic and diluted net loss per
share of $0.11 in the third quarter of 2008.

Cash and cash equivalents and short-term investments at September 30, 2009
were $58.9 million, compared with $55.7 million at June 30, 2009 and $56.7
million at December 31, 2008.

"In the third quarter, we significantly grew our business, improved gross
margins and increased the reimbursement per test resulting in a narrowed net
loss," said Kim Popovits, President and Chief Executive Officer of Genomic
Health. "We are committed to strengthening our business through continued
investment in the worldwide expansion of the Oncotype DX breast cancer test
and the anticipated launch of our Oncotype DX colon cancer test early next
year. In addition, as we near break even, we are focused on driving
longer-term growth by leveraging our rigorous development approach and
commercial infrastructure to bring additional products to cancer patients."

Additional Third Quarter 2009 Financial Results

During the third quarter of 2009, approximately 50 percent of product revenue
was recorded on an accrual basis and recognized at the time test results were
delivered, reflecting established payment patterns from payors with agreements
to pay or contracts in place.

Total operating expenses were $40.1 million, including cost of product
revenues of $8.3 million, in the third quarter of 2009, compared with total
operating expenses of $31.4 million, including cost of product revenues of
$7.1 million, in the third quarter of 2008. Included in third quarter 2009
operating expenses were non-cash charges of $4.2 million, including $2.5
million of stock-based compensation expense and $1.7 million of depreciation
and amortization expenses, compared with $2.3 million of stock-based
compensation expense and $1.3 million of depreciation and amortization
expenses in the same period in 2008.

Financial Results for Nine Months Ended September 30, 2009

Total revenue for the nine months ended September 30, 2009 was $110.0 million,
compared with $79.3 million for the first nine months of 2008. Product
revenue for the nine months ended September 30, 2009 was $107.5 million,
compared with $77.8 million for the first nine months of 2008.

Net loss for the nine months ended September 30, 2009 was $9.1 million,
compared with $13.8 million for the first nine months of 2008. Basic and
diluted net loss per share was $0.32 for the nine months ended September 30,
2009, compared with basic and diluted net loss per share of $0.49 for the
first nine months of 2008.

Upcoming Event

The Company will provide additional detail on research, development and
commercial efforts in a business and scientific briefing to be held on
Thursday, November 12, 2009 beginning at 12:30 p.m. ET.

Recent Highlights and Accomplishments

Commercial Progress
-- Delivered more than 12,600 Oncotype DX breast cancer test results in
the
third quarter of 2009, compared with more than 10,220 test results
delivered in the third quarter of 2008, an increase of 23 percent
year-over-year.
-- Began accepting all appropriate breast cancer tumor samples,
regardless
of immunohistochemistry (IHC) estrogen receptor (ER) status, to
facilitate the assessment of ER status by reverse
transcription-polymerase chain reaction (RT-PCR) testing.
-- Established two additional distribution agreements in South America.
The
Company has received samples from more than 50 countries to date.
-- Initiated breast cancer clinical utility trials of Oncotype DX with
clinical researchers in Japan and Spain.
-- Launched a large adjuvant breast cancer trial with clinical
researchers
in Germany which, like TAILORx in the United States, uses the Oncotype
DX assay to select patients for study randomization and treatment.

-- Established a contract with Blue Cross Blue Shield of Arizona
providing
in-network benefit coverage for approximately 1 million lives.

Peer-Reviewed Publications and Medical Meeting Presentations
-- Presented two studies at the 2009 ASCO Breast Symposium. Highlights
included:
-- Results from a study demonstrating the critical role of manual
microdissection to remove all biopsy cavities from breast cancer
specimens. The Oncotype DX breast cancer test includes manual
microdissection following review by a board certified surgical
pathologist with breast expertise to predict a patient's benefit
from chemotherapy and risk of disease recurrence.
-- Results of a multi-center Japanese study demonstrating that the
Oncotype DX breast cancer test had significant prognostic value in
Japanese women with ER-positive early-stage breast cancer. In
this
study of 200 women with node negative breast cancer that was
originally presented at the 2009 Kyoto Breast Cancer Consensus
Conference International Convention, Oncotype DX identified a
large
portion of patients in Japan who had ER-positive early-stage
breast
cancer as having a low likelihood of distant recurrence.

-- Presented results at the joint ECCO/ESMO Multidisciplinary Congress
confirming that the distribution of Recurrence Scores® in European and
Middle Eastern breast cancer patients is consistent with those
observed
in the U.S.

Conference Call Details
To access the live conference call today, November 4, at 4:30 p.m. Eastern
Time via phone, please dial (877) 361-8830 from the United States and Canada
or +1(706) 679-8297 internationally. The conference ID is 38477730. Please
dial in approximately ten minutes prior to the start of the call. A telephone
replay will be available beginning approximately one hour after the call
through November 11, and may be accessed by dialing (800) 642-1687 from the
United States and Canada or +1(706) 645-9291 internationally. The replay
passcode is 38477730.

To access the live and subsequently archived webcast of the conference call,
go to the Investor Relations section of the company's web site at
http://investor.genomichealth.com. Please connect to the web site at least 15
minutes prior to the call to allow for any software download that may be
necessary.

Analyst Day Details
The Company will hold a business and scientific briefing on Thursday, November
12, 2009 beginning at 12:30 p.m. ET in New York City. Speakers will focus on
Genomic Health's business model, research and development, technology platform
and patient centric philosophy as driving factors for making individualized
cancer treatment the standard of care. In addition, the meeting will feature
a presentation by Norman Wolmark, M.D., chairman of the National Surgical
Adjuvant Breast and Bowel Project (NSABP), and the Department of Human
Oncology at Allegheny General Hospital in Pittsburgh, Pennsylvania, centered
on the need for individualized cancer treatment and his experience in both
breast and colon cancer.

To access the live and subsequently archived webcast of the analyst day
presentation, visit the Investor Relations section of Genomic Health's website
at http://investor.genomichealth.com. Please connect to the website at least
15 minutes prior to the beginning of the presentation to allow for any
necessary software downloads. An archived replay will be available beginning
24 hours after the live presentation.

About Genomic Health
Genomic Health, Inc. (NASDAQ: GHDX) is a life science company focused on the
development and commercialization of genomic-based clinical laboratory
services for cancer that allow physicians and patients to make individualized
treatment decisions. In 2004, Genomic Health launched the Oncotype DX® breast
cancer test, which has been shown to predict the likelihood of chemotherapy
benefit as well as recurrence in early-stage breast cancer. In addition to the
widely adopted Oncotype DX breast cancer test, Genomic Health is preparing to
launch its Oncotype DX colon cancer test in early 2010. The company was
founded in 2000 and is located in Redwood City, California. For more
information, please visit www.genomichealth.com

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 ability to strengthen its business through
continued investment in the worldwide expansion of its Oncotype DX breast
cancer test and its launch of a colon cancer test; the company's expectations
regarding the commercialization of a test for colon cancer and the proposed
timing of commercialization; the company's belief that it is nearing break
even; the company's ability to focus on driving longer-term growth by
leveraging its development approach and commercial infrastructure to bring
additional products to cancer patients; the outcome, success or results of
clinical trials; and the applicability of clinical study results to actual
outcomes. 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: our ability to increase
usage of our tests; the risk that we may not obtain or maintain sufficient
levels of reimbursement for our existing tests and any future tests we may
develop; the risks and uncertainties associated with the regulation of our
tests by FDA; our ability to compete against third parties; our ability to
develop and commercialize new tests; unanticipated costs or delays in research
and development efforts; our ability to obtain capital when needed; our
history of operating losses; the results of clinical studies; the
applicability of clinical study results to actual outcomes; 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 June 30, 2009. 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 and Recurrence Score are
trademarks or registered trademarks of Genomic Health, Inc. All other
trademarks and service marks are the property of their respective owners.

GENOMIC HEALTH, INC.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues:
Product revenues $38,910 $28,070 $107,529 $ 77,752
Contract revenues 607 51 2,436 1,592
---------- ---------- ---------- ----------
Total revenues 39,517 28,121 109,965 79,344
Operating expenses:
Cost of product revenues 8,301 7,140 24,019 19,875
Research and development 9,120 6,939 27,007 20,667
Selling and marketing 15,313 10,837 45,719 35,030
General and administrative 7,316 6,505 22,318 18,635
---------- ---------- ---------- ----------
Total operating expenses 40,050 31,421 119,063 94,207
---------- ---------- ---------- ----------
Loss from operations (533) (3,300) (9,098) (14,863)
Interest and other income,
net 116 369 591 1,438
Interest and other expense,
net (22) (91) (109) (330)
---------- ---------- ---------- ----------
Loss before income taxes (439) (3,022) (8,616) (13,755)
Provision for income taxes (63) - (454) -
---------- ---------- ---------- ----------
Net loss $(502) $(3,022) $(9,070) $(13,755)
========== ========== ========== ==========
Basic and diluted net
loss per share $(0.02) $(0.11) $(0.32) $(0.49)
========== ========== ========== ==========
Shares used in computing
basic and diluted net loss
per share 28,579,045 28,331,505 28,538,915 28,270,776
========== ========== ========== ==========

GENOMIC HEALTH, INC.
Condensed Consolidated Balance Sheets
(In thousands)
As of As of
September 30, December 31,
2009 2008
(Unaudited) (Unaudited)
--------- ---------

Cash and cash equivalents $16,719 $11,171
Short-term investments 42,183 45,499
Accounts receivable, net 9,655 8,807
Prepaid expenses and other current assets 5,341 4,781
--------- ---------
Total current assets 73,898 70,258

Property and equipment, net 13,235 15,562
Restricted cash 500 500
Other assets 477 369
--------- ---------
Total assets $88,110 $86,689
========= =========

Accounts payable $2,578 $1,898
Accrued expenses and other current liabilities 15,539 11,472
Deferred revenues 2,762 3,798
Notes payable 532 2,039
Other liabilities 1,002 1,307
Stockholders' equity 65,697 66,175
--------- ---------
Total liabilities and stockholders' equity $88,110 $86,689
========= =========

The condensed consolidated balance sheet at December 31, 2008 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, 2008.

SOURCE Genomic Health, Inc.

Investors, Brad Cole, +1-650-569-2281, investors@genomichealth.com or Media,
Emily Faucette, +1-415-595-9407, media@genomichealth.com, both of Genomic
Health