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Genomic Health, Inc. (GHDX - Free Report) , a leading molecular diagnostics company, recently presented results from 15 Oncotype DX Breast Recurrence Score studies. These multiple studies were conducted in 12 countries for changing treatment decisions in breast cancer patients. The new findings were presented by the company at the 15th St. Gallen International Breast Cancer Conference in Vienna.

Additionally, the American Joint Committee on Cancer (AJCC) recently included Genomic Health’s test in its updated publication. It identified Oncotype DX as the sole multi-gene test to determine formal staging of breast cancer patients, based on prospective outcome in more than 63,000 patients.

For the past one month, Genomic Health has been trading above the Zacks categorized Medical - Biomedical and Genetics industry. The stock gained 10.8%, much higher than the industry’s gain of 2.3%. We expect the impressive test data to boost the share price in the days ahead.

Meanwhile, studies demonstrated the clinical validation of the Breast Recurrence test in various early-stage breast cancer patients, including those with node-positive disease. Three studies involving more than 8,000 node-positive breast cancer patients showed that those with a low Oncotype DX Breast Recurrence Score (RS) had favorable outcomes. Majority of these patients were treated with hormonal therapy alone without chemotherapy and had an excellent five-year disease free survival rate.

Several studies in Germany and France also validated the economic value of Oncotype DX Breast Recurrence Score, supporting wider adoption of the test in Western Europe. Compared to other assays, the Breast Recurrence Score is a low risk one and helps in net budget savings. It was also proved that the test reduced the use of chemotherapy by 35%.

These results were consistent with findings from the review of eight other international studies that included more than 2,500 patients. Genomic Health’s management is optimistic about the outcome as the test helps decide whether chemotherapy is needed for women with both node-negative and node-positive breast cancer. This will help patients avoid unnecessary chemotherapy and healthcare costs.

As per a recent GBI Research report, the global breast cancer market is expected to reach a worth of $17.2 billion, at a CAGR of 7.3%. Genomic Health is currently facing intensifying competition in this market from the likes of Myriad Genetics. We are hopeful that Genomic Health will be able to strengthen its position in the market based on the prospects of Oncotype DX Breast Recurrence Score.

Zacks Rank & Key Picks

Genomic Health currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector are Inogen, Inc. (INGN - Free Report) , Bovie Medical Corporation (BVX - Free Report) and ResMed, Inc. (RMD - Free Report) . Inogen sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen gained 85.9% in the last one year in comparison to the S&P 500’s gain of 15.8%. The company has a stellar four-quarter average earnings surprise of over 49.08%.

Bovie Medical surged 52.8% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 28.7%.

ResMed gained over 26.5% in the past one year, better than the S&P 500 mark. It also has a trailing average earnings surprise of 0.31%.

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