New Venture to Focus on Integrating Clinically Relevant Genetic Information from the Human Genome into Routine Medical Practice
REDWOOD CITY, Calif., Feb. 6, 2012 /PRNewswire/ -- Genomic Health, Inc. (Nasdaq: GHDX) today announced plans to establish a wholly owned subsidiary with the goal of improving the quality of diagnosis, communication and support for millions of patients and their families faced with common and rare genetic conditions. The subsidiary is expected to be established by March 1, 2012 and provide its first commercial service in 2013. The new venture will be led by Randy Scott, who in his role as Executive Chairman for the past three years has focused on commercial applications of next generation sequencing.
The new subsidiary will focus on accelerating the integration of the human genome into medical practice with an emphasis on bioinformatics and clinical utility. Dr. Scott will be CEO of the new subsidiary and remain a Genomic Health Board member and Kim Popovits, President and Chief Executive Officer, will assume the additional role of Chairman of the Board effective March 1, 2012. In a related action, Julian Baker has been named as Lead Independent Director.
"As the cost of DNA sequencing continues to drop, new medical applications with the potential to impact millions of people are rapidly emerging," said Randy Scott, Executive Chairman of Genomic Health. "We are at a unique turning point in medicine and believe the investment we have made over the past several years in the development of a robust next generation sequencing platform and the capabilities we have established in building a successful cancer genomic business make this the ideal time to expand into both common and rare genetic conditions and expect this new start-up to be a significant long-term contributor to the company's growth."
Genomic Health plans to invest up to $20 million in the new subsidiary over the next two years and has incorporated this into its 2012 financial outlook provided in its separate earnings release issued today. The new venture will focus on commercial applications of the human genome and plans to leverage Genomic Health's research and development as well as third party R&D efforts.
"With our ability to leverage Genomic Health's established commercial infrastructure, clinical laboratory, research and development, and information technology platform, we believe we are uniquely positioned to lead the translation of individual genomic sequencing into real world medical practice by making this investment to expand our business," said Kim Popovits, President and Chief Executive Officer. "Randy has the vision and entrepreneurial track record to lead this exciting new endeavor as we continue our mission to deliver future growth and better outcomes for physicians, patients and payers through Genomic Health."
About Genomic Health
Genomic Health, Inc. (NASDAQ: GHDX) is a global cancer company focused on the development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Its lead product, the Oncotype DX® breast cancer test, has been shown to predict the likelihood of chemotherapy benefit as well as recurrence in invasive breast cancer and has been shown to the predict the likelihood of recurrence in ductal carcinoma in situ (DCIS). In addition to this widely adopted test, Genomic Health provides the Oncotype DX colon cancer test, the first multigame expression test developed for the assessment of risk of recurrence in patients with stage II disease. As of December 31, 2011, more than 10,000 physicians in over 65 countries had ordered more than 265,000 Oncotype DX tests. Genomic Health has a robust pipeline focused on developing tests to optimize the treatment of prostate and renal cell cancers, as well as additional treatment decisions in breast and colon cancers. The company is based in Redwood City, California with European headquarters in Geneva, Switzerland. For more information, please visit, www.GenomicHealth.com. To learn more about Oncotype DX tests, visit: www.OncotypeDX.com and www.mybreastcancertreatment.org.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's plans to establish and invest in a subsidiary focused on clinical and commercial applications of genetics; our expectations regarding the potential for clinical and commercial applications of genetic information; our plans to make genomic services available in 2013; our expectations regarding the subsidiary's future contributions to our long term profit expectations; our expectations regarding the cost of DNA sequencing; our belief regarding our ability to leverage our global infrastructure in cancer to integrate the human genome more broadly into medical practice; our 2012 financial guidance; the focus and attributes of the company's product pipeline; the ability of the company to develop additional tests in the future; and the ability of any potential tests the company may develop to optimize cancer treatment. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: our ability to successfully launch a new business in the field of genetics; our ability to develop and commercialize new services or tests and the timing thereof; unanticipated costs or delays in our efforts; the applicability of initial next generation sequencing studies to future results; the risk that the opportunity that we envision for genetics may not exist; the risk that the cost of DNA sequencing may not evolve as we expect; our ability to compete against third parties; the risks and uncertainties associated with the regulation of our tests by the FDA and other agencies abroad; and the other risks set forth in the company's filings with the Securities and Exchange Commission, including the risks set forth in the company's Quarterly Report on Form 10-Q for the period ended September 30, 2011. These forward- looking statements speak only as of the date hereof. Genomic Health disclaims any obligation to update these forward-looking statements.
NOTE: The Genomic Health logo, Oncotype, Oncotype DX, Recurrence Score, and DCIS Score are trademarks or registered trademarks of Genomic Health, Inc. All other trademarks and service marks are the property of their respective owners.
SOURCE Genomic Health, Inc.