Genomic-based clinical laboratory service provider Genomic Health Inc. (GHDX) reported results from two studies that evaluated the company's Oncotype DX test in personalizing prostate cancer treatment. Both the trials were directed toward evaluating the test's capability in differentiating between low- and intermediate-risk prostate cancer. This will allow both physicians and patients to refrain from either over- or under-treatment of the disease.
Genomic Health presented these study results at the Society of Urologic Oncology (SUO) Annual Meeting, to be held from Dec 3–5 in Bethesda, MD.
According to the latest clinical validation study, results of which have been published online in the European Urology journal in Dec 2014, Genomic Health's Oncotype DX test possesses the capacity to estimate short- as well as long-term clinical results in a racially diverse group of men diagnosed with clinically localized prostate cancer.
In an earlier development, results from the first decision impact study on the Oncotype DX prostate cancer test revealed the role played by the test in influencing treatment decisions. This prospective study conducted on a contemporary group of men with low- or intermediate-risk disease showed that the use of Oncotype DX as a prostate cancer detection test can substantially increase the number of men in need of active surveillance.
Each year, 240,000 men are diagnosed with prostate cancer in the U.S. alone, more than half of them being low-risk patients who can be sufficiently treated through active surveillance. A common trend observed is that once individuals are diagnosed with prostate cancer, they end up undergoing unnecessary aggressive treatment due to the lack of adequate knowledge about genomic tests like Oncotype DX.
In association with upgraded tools like genomic profiling, Oncotype DX can diagnose an individual patient's risk accurately. This has made the role of the test rather indispensable in detecting disease aggressiveness and determining correct treatment recommendations.
We believe the aforementioned study results will encourage more physicians to prescribe the Oncotype DX test for prostate cancer patients. This should naturally translate into higher revenues for the company. Moreover, by doing away with unnecessary aggressive treatment, the test will also help curb overall healthcare costs.
Recently molecular diagnostics provider Myriad Genetics, Inc.(MYGN) has unveiled new clinical data revealing that the company's Prolaris test, used to predict prostate cancer aggressiveness, can save $6 billion for the healthcare system over a period of 10 years. This shows diagnostics companies are currently engaged in developing cost-effective cancer tests, besides upgrading the same.
Zacks Rank
Currently, Genomic Health retains a Zacks Rank #2 (Buy), while Myriad Genetics holds a Zacks Rank #3 (Hold). Some other well-placed stocks worth reckoning in the med-biomed/generic industry are Affymetrix Inc. (AFFX) and ANI Pharmaceuticals, Inc. (ANIP). Both these stocks sport a Zacks Rank #1 (Strong Buy).
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