Genomic Health, Inc. (NASDAQ:GHDX)

Based on speculative takeover potential as Big Pharma looks to fight off the growing patent cliff.

Winning!

Good mgmt, mgmt have skin in the game, growing field, great execution in building payment from insurance companies.

A whole new way to diagnose that has to catch on. With limited competition, this company will do well.

Sitting near 52 week low. It won't last. Wish I had more real $$ to invest in this one at the moment.

Aging population, more and more cancer. Might as well make some money off it.

Revenue increasing at a very nice clip, about to climb out of the red and into profitability, nice cash cushion. Life science sounds sexy.

Genomics is a promising direction for genetic studies.

GHDX

fransgeraedts pick

Oncotype DX revenues for the last four quarters were 26, 28, 31 and 34 million respectively. The assay was also recently shown to be predictive of distant recurrence in colon cancer, although the market was apparently disappointed by its inability to predict the effectiveness of chemotherapy as it does in breast cancer. The company remains unprofitable as they aggressively pursue expanded indications for the Oncotype DX assay, but the burn rate is well controlled with a cash position that will carry them safely at least through the end of 2010 without dilution. Due to their reliance on a single product and lack of a clear pipeline, GH has an inherently weaker risk/reward profile when compared to Myriad. However, their current share price represents an attractive entry point given that they were at 27 a month ago without any change in fundamentals.

Mmm...medical tests...

This company allows for targeted treatment of breast cancer. By better determining patients that will benefit from chemotherapy, there are substantial benefits for the patient and for the payors.

This spring they got clinical validation, they received insurance approval for the Oncotype Dx test for estrogen receptor positive breast cancer. They test the DNA of the tumor against the DNA of the person who had the tumor and this gives a personalized predictor of the odds of that same cancer recurring in that person. They also test chemo therapies against and make recommendations. This is far better than population statistics, and the fact that they have insurance approval for the test means increased income. I gather that the test for progesterone receptor positive tumors is close to approval.

I spoke to a member of the board of trustees of BC/BS and he was pleased that it had been used on me. This was within 3 months of approval. It has saved me from months of chemo and radiation. It saves the insurance companies all of that money that would have been spent on my care.

With a PE ratio of 2.83, this seems a go to me.

Q2 revenue grew 81%, beat the estimates by .03 cents, ripe for acquisition.

Showing earnings improvment, GHDX looks like there in bargain box.

The Oncotype Dx test divides tumors that APPEAR likely to do well with hormonal therapy (non-chemo) from those that are "wolves in sheep's clothing," tame-appearing tumors that really need chemo to be cured. It is the fear of the latter, however uncommon, that makes oncologists give chemo to so very many young and young-ish patients "just to be safe."
The test is expensive but a drop in the bucket compared to chemo, so more and more insurance companies are covering it, and I think there is reason to expect that the indications will expand in the future, so what we may be seeing now is "the tip of the iceberg"---of cash, that is.

Genomic Health, Inc., a life science company, engages in the development and commercialization of genomic-based clinical diagnostic tests for cancer in the United States

God bless it all! I actually bought this stock when it was in the $9+. Had to sell it but hate myself for it.