NEW YORK (GenomeWeb) – Genomic Health reported after the close of the market Tuesday that its first quarter revenues rose 4 percent year over year, falling slightly short of the consensus Wall Street estimate.
The company’s total revenue for the three months ended March 31 was $85.5 million, compared with $82.0 million in the second quarter of 2016. Analysts on average had predicted revenues of $86.1 million.
Genomic Health adjusted slightly its guidance for the full year, but maintained that it expects to reach overall profitability. The firm now predicts total revenue of $345 to $355 million for full-year 2017, down from $355 to $370 million, with profit at either end of that range.
“While the timing of important reimbursement drivers has delayed the pace of revenue growth, we expect to deliver full-year profitability at these revised revenue levels, including double-digit revenue growth in the fourth quarter,” Genomic Health COO and CFO Brad Cole said in a statement.
Driving these expectations, at least in part, is the anticipation of an expansion of Medicaid coverage for the firm’s prostate cancer test to intermediate-risk patients in addition to clinically low-risk patients, Cole added.
This May, CMS contractor Palmetto GBA issued a