Genomic Health Shares Rise On Analyst Upgrade

NEW YORK (AP) — Shares of Genomic Health Inc. advanced Thursday after a Thomas Weisel Partners analyst upgraded the stock, citing its current value and the company's potential expansion within the cancer test market.

The company focuses on clinical diagnostic tests for cancer. The stock gained 35 cents, or 2 percent, to $17.81 in morning trading, after surging as much as 4.6 percent to $18.27 earlier in the session. Shares have traded between $16 and $27.22 over the last 52 weeks.

Thomas Weisel Partners analyst Peter Lawson upgraded the stock to "Overweight" from "Market Weight," noting it is trading below its peers. Also, he said the company is poised to build up its share of the test market.

"Genomic Health's OncoType Dx test commands nearly 100 percent of the molecular diagnostic market for breast cancer recurrence and therapy response," he said, in a note to investors.

The only near competitive threats are Agendia and Celera, he added.

"Agendia has an FDA-approved test but has less than 1 percent of market share, and lacks clinical validation, a sales presence and patient acceptance," he said. "Celera has licensed its metastatic risk test to LabCorp - providing marketing muscle but lacking aptitude for the level of patient-physician education required for test adoption."