source site Genomic Health-Good Long Term Value
This looks like a good entry point for buying shares of Genomic Health (GHDX $28.50), a molecular diagnostic company focused on personalized medicine for cancer with its oncotype DX invasive breast cancer test.Yesterday the Company announced results from next generation sequencing studies from paraffin tissue (FPET) to improve the precision of cancer diagnosis. On February 6. 2013 the Company announced 2012 Year End Results with Revenues of $235M with Net Income of $8.2M or $0.26 per share diluted.
The Company will launch its oncotype DX prostate cancer test in 2013, its third product franchise. The full year guidance for 2013 is revenues of $258M-$266M with tests for breast, colon and prostate cancer. All tests are performed in a centralized lab in Redwood City, CA. Additional oncotype tests are in the product pipeline.The Company has $99M in cash and Stockholder equity of $147M.
Although the forward PE is on the high side at 97 the P/S is a low 3.67 and this is a unique franchise with limited competition. GHDX is more of a value play with upside limited to the $35 level.Insiders are buying the stock.