Nestled within the beauty of Maine’s Acadia National Park, on the picturesque Mount Desert Island, is a place known to many scientists and health care investors as the place where the term “genomics” was coined.

I’m talking about The Jackson Laboratory.

I mention this little piece of trivia mostly because of the timeline. It was only 30 years ago when one of the most powerful game-changing trends in health and science, nameless until then, received its title.

[ad#Google Adsense 336×280-IA]The mapping of the human genome only started in the 1970s.

Today, only a few decades later and 12 years after the completion of the Human Genome Project, it’s hard to understate the impact genomics and genetic mapping has made in health sciences and medicine.

Newer, better diagnostic and treatment choices are now available as a result.

For instance, because of recent advances in genomics, doctors are now armed with tools enabling them to locate the risk genes for many genetic diseases.

Medical researchers are hard at work to apply these tools to heart disease, diabetes, and more.

This leads me to Genomic Health (Nasdaq: GHDX), one of several recent additions I’ve made to the portfolio of my premium newsletter, Game-Changing Stocks. Founded in 2000, this company is at the forefront of genomic testing for, in its own words, “practice-changing genomic cancer information.”

This Company Is A Game-Changer For Cancer Treatment
A pioneer in the field of genomic cancer diagnostics, Genomic Health developed and commercialized molecular diagnostic tests that make cancer treatment much more exact. Its tests provide individualized information on the likelihood of cancer disease recurrence, and, in some cases, responses to certain types of therapy. Its work has resulted in improved outcomes for countless patients.

For companies in this line of work, research matters. Genomic Health finances its own research, and has been issued more than 120 peer-reviewed publications. It’s also conducted over 100 successful clinical studies in more than 65,000 breast, colon and prostate cancer patients. New discoveries and novel tests are impossible without such investments.

And while these R&D efforts cost money, they create significant competitive advantages. It is very strong (with about 50% penetration) in the U.S. invasive breast cancer business, and has recently made progress in developing and advancing private coverage to its prostate score test. Sixty million people in the United States are now covered for this procedure.

Genomic Health’s main product, Oncotype IQ, targets three major cancer types — breast, colon and prostate — by providing additional information for early stages of these cancers. The company has a goal of providing similar genomic insights at every stage of cancer care.

The majority of these tests are processed in a company-owned laboratory. The lab, both domestically and internationally accredited, gets samples from more than 90 countries and delivers more than 100,000 test results annually.

Plus, Genomic Health’s portfolio of tests is expanding. Based on the Oncotype IQ product, new offerings in development include tissue and liquid-based gene mutation panels, monitoring tests to track tumor status, and a web-based information platform to gather and help evaluate patient test results.

The type of medical testing Genomic Health provides requires vigorous validation. And the company has the clinical trials validation process in place. This process and these clinical trials are difficult to duplicate and commoditize. This makes the company’s competitive position in the growing industry strong, and its projected growth numbers should be reliable.

Still a small company, with annual revenue of $330 million and a market capitalization of just over $1 billion, Genomic Health is growing. It expects to see 12% to 17% in revenue growth this year. And while it’s not yet profitable on a per-share basis, this year the company also expects to see positive earnings before interest, taxes, depreciation and amortization (EBITDA).

So far, it’s on track to meet these goals. The $82 million in second-quarter revenue represents a 16% increase from the same period a year ago. And the company is also strong financially: GHDX has no debt. And as of the end of its latest quarter, it had nearly $81 million in cash and cash equivalents on the balance sheet.

This Growth Stock Is Worth Serious Consideration
Genomic Health is an innovative cancer diagnostics company that occupies a unique niche in the molecular diagnostic industry. Its tests are predictive and help to determine whether a specific drug or treatment will benefit a specific patient. This makes the company’s proprietary tests a compelling value proposition in this day and age of skyrocketing medical costs, and could well make Genomic Health a target for another, larger, industry player in need of growth.

Genomic Health is a game-changer that belongs in my portfolio, and I rate it a “Buy” at current levels.

— Genia Turanova

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Source: Street Authority