Genomic Health-Good Long Term Value
This looks like a good entry point for buying shares of Genomic Health (GHDX $28.50), a molecular diagnostic company focused on personalized medicine for cancer with its oncotype DX invasive breast cancer test.Yesterday the Company announced results from next generation sequencing studies from paraffin tissue (OTCPK:FPET) to improve the precision of cancer diagnosis. On February 6. 2013 the Company announced 2012 Year End Results with Revenues of $235M with Net Income of $8.2M or $0.26 per share diluted.
The Company will launch its oncotype DX prostate cancer test in 2013, its third product franchise. The full year guidance for 2013 is revenues of $258M-$266M with tests for breast, colon and prostate cancer. All tests are performed in a centralized lab in Redwood City, CA. Additional oncotype tests are in the product pipeline.The Company has $99M in cash and Stockholder equity of $147M.
Although the forward PE is on the high side at 97 the P/S is a low 3.67 and this is a unique franchise with limited competition. GHDX is more of a value play with upside limited to the $35 level.Insiders are buying the stock.
Here is a summary of other stocks within the Rayno DX and Tools Portfolio. New buys in 2012 were CPHD, RGDX and TMO :