Genomic Health, Inc. (GHDX - Free Report) recently announced a positive development with regard to the newly updated National Comprehensive Cancer Network (NCCN) 2018 guidelines for invasive breast cancer chemotherapy treatment. Per the company, it’s Oncotype DX Breast Recurrence Score test has been identified as the only "preferred" test for making decisions regarding chemotherapy treatment for patients suffering from node-negative early-stage breast cancer.
Furthermore, Oncotype DX has been elevated into the algorithm for chemotherapy treatment of patients with micrometastases and one to three positive lymph nodes.
Per the company, the NCCN guidelines were updated following the recent publication of results of ECOG-ACRIN Research Group led — Trial Assigning IndividuaLized Options for Treatment (Rx) or TAILORx.
Market Trends Buoy Optimism
According to a report by GBI Research, the global breast cancer therapeutics market is estimated to reach a worth of $17.2 billion by 2021, at a CAGR of 7.3%. Considering the solid prospects of the market, we believe the latest development is a timely one and will boost the uptake of the test.
Developments in Oncotype DX Breast Recurrence Score Test
Genomic Health is witnessing healthy progress with regard to establishing coverage for its Oncotype DX breast cancer test. During the second quarter, the company delivered more than 33,590 Oncotype DX test results, up 6% year over year. Per management, the Oncotype DX Breast Recurrence Score market adoption has almost reached 60%, courtesy of continued strong demand.
Genomic Health expects several key catalysts to drive revenues in 2018. These catalysts include the implementation of both PAMA reimbursement at a higher level than the 2016 invasive breast rate and AJCC staging criteria. Further, the recently-published ECOG-ACRIN Cancer Research Group TAILORx study results will provide an impetus.
In fact, Genomic Health expects PAMA market-based pricing to have an $8-million impact on the top line in 2018.
Stock Performance Solid
In the past month, Genomic Health has outperformed its industry. The stock has gained 0.7%, against the industry’s 7.1% decline.
Zacks Rank & Other Key Picks
Genomic Health currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock currently carries a Zacks Rank of 2.
Amedisys’ long-term expected earnings growth rate is 19.4%. The stock holds a Zacks Rank #2 at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.
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