JMP maintains buy on Oncotype

JMP research analyst Erin Seidemann said the publication of the large Kaiser Permanente study in the peer-reviewed journal Breast Cancer Research demonstrate that Genomic Health, Inc.'s Oncotype DX predicts the likelihood of survival in early breast cancer independent of tumor size and grade. These data are consistent with and build upon findings from previous large clinical trials conducted with National Surgical Adjuvant Breast and Bowel Project. While the data from the Kaiser study were previously presented in abstract form at ASCO 2005 and the timing and results reported in the publication were in line with expectations, JMP anticipates a third published clinical trial should further raise the awareness of Oncotype DX and support the increased adoption, use and reimbursement of this molecular diagnostic tool. Based on these recent publications as well as upcoming data presentations at ASCO 2006 (June 2-6), JMP believes Genomic Health shares at current trading levels represent a buying opportunity for value-oriented investors. Given current valuation methodology for Genomic Health shares of 25x 2010 EPS of $1.47 discounted at 25%, JMP arrives at a $19 price target. Shares were up 12 cents, or 1.06%, at $11.48 on volume of 175,723 shares versus the three-month running average of 110,158 shares. Genomic Health, a life science company located in Redwood City, Calif., conducts genomic research to develop clinically validated molecular diagnostics. (Nasdaq: GHDX)

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