Genomic Health's (GHDX) Oncotype DX GPS Test Data Positive

Genomic Health, Inc. (NASDAQ:GHDX) , a global cancer company, recently presented positive results for its Oncotype DX Genomic Prostate Score (GPS) test. The test was conducted at Oakland, CA-based integrated managed care consortium, Kaiser Permanente. The findings confirmed that the GPS test, as an independent predictor, is effective in measuring the metastases of prostate cancer in men.

For the past three months, Genomic Health has been trading above the Zacks categorized Medical - Biomedical and Genetics industry. The stock has gained 5.74%, much higher than the industry’s decline of 4.99%. We believe that the company is currently riding high on its presentation of positive data related to its cancer tests.

Coming back to the news, metastases is the spread of cancer or any other disease from one organ or part of the body to another without being connected to it. GPS generally offers low-risk patients the opportunity to avoid prostatectomy or radiation while identifying cases which need immediate definitive treatment.

Per management, the Oncotype DX Genomic Prostate Score is currently the only genomic test as a predictor of adverse pathology. Also, GPS tests will help patients get better outcomes at low costs.

According to BCC Research, by 2021, the prostate cancer global market is estimated to reach a worth of $65.1 billion, up from $47.2 billion in 2016, based on a 6.6% CAGR. Given the rising incidence of prostate cancer and expenditures involved in its treatment, Genomic Health’s focus on this space seems prudent.

The company is trying to expand its footprint in this niche market. This is evident from the fact that it has planned to launch Oncotype DX AR-V7 later this year in partnership with Epic Sciences. Also, very recently Genomic Health unveiled another set of positive findings of the Oncotype DX GPS test which can predict prostate cancer-specific death and disease progression in patients. We expect this favorable dataset to help the company maintain the bullish trend.

Zacks Rank & Key Picks

Genomic Health carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical sector are Luminex Corporation (NASDAQ:LMNX) , Hologic, Inc. (NASDAQ:HOLX) and Sunshine Heart Inc (NASDAQ:SSH) . Notably, Hologic and Luminex sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 19.0% over the last three months.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 28.8%.

Sunshine Heart recorded a stellar EPS growth rate of almost 22% (last 3–5 years of actual earnings).

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