Leading genomic-based clinical laboratory services provider Genomic Health Inc. (GHDX) recently reported positive outcome of a health economic analysis that were also published in peer-reviewed medical journal PharmacoEconomics.
The results indicate the potential of Genomic Health's Oncotype DX colon cancer test in appreciably minimizing direct medical expenses while also improving a patient's well-being by eradicating unnecessary treatment.
In the health economic study, 141 patients from 17 sites were evaluated in the Mayo Clinic Cancer Research Consortium. A detailed analysis of these patients reflected the utility of the Oncotype DX test in diagnosis of stage II colon cancer patients with low risk of recurrence, who may consider opting out of a conventional chemotherapy regimen.
Evidently, there was a 22% decline in the physicians' advice to undergo adjuvant chemotherapy for patients with low risk of recurrence, once their Recurrence Score results were available. This consequently translated into a savings of approximately $1,000 per patient in direct medical care expenses.
This marks the first health economic survey of the Oncoytype DX colon cancer test, conducted in clinical practice.
The Oncotype DX test is a pioneering product pipeline of Genomic Health, which helps individualize treatment planning for cancer patients. It has effectively contributed to the company's positive growth outlook since its launch. Evidently, in the last reported quarter the company delivered over 24,050 Oncotype DX test results, reflecting 17% growth from the year-ago quarter's tally.
Currently, the company is focused on boosting its Oncotype DX portfolio in the international market, wherein it recorded a robust 32% test growth in the last reported quarter. Per management, the success of this trial reflects a significant milestone for Genomic Health, highlighting the usefulness of this test in reducing healthcare cost as well as avoiding unnecessary treatment procedures in cancer patients.
Likewise, in 2012, a separate modeling study had demonstrated the effectiveness of the Oncotype DX test in stage II colon cancer patients in reducing healthcare costs while also improving clinical outcomes. The study was then published inValue of Health.
Currently, Genomic Health has a Zacks Rank #2 (Buy). Other notable stocks in the Med-Biomed/Generic industry include Cambrex Corporation (CBM), China Biologic Products, Inc. (CBPO) and Gilead Sciences Inc. (GILD). All these stocks carry a Zacks Rank #1 (Strong Buy).
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