Genomic Health (GHDX)
Genomic Health was an early developer of genetic testing to determine the likelihood of the occurrence of various cancers. Their first test, back in 2004 was designed to determine the likelihood of recurrence of breast cancer. In 2010 the developed a test for colon cancer, and in 2013, a test for prostate cancer. This last test is the one that makes the company exciting today, as it is rapidly gaining market share. The number of patients screened by the test increased by 75% in 2015, giving the company 8% of the market. Gross margins are also rising, and Medicare is increasing reimbursement on prostate tests. The company’s 2016 was not profitable, but current trends show the company is likely to achieve profitability by the end of 2017. There’s a lot to like here.
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