Product revenue from the Oncotype DX(R) breast cancer test was $33.4 million in the first quarter of 2009, an increase of 43%, compared with $23.3 million in the first quarter of 2008.
Cash and cash equivalents and short-term investments at March 31, 2009 were $53.4 million compared with $56.7 million at December 31, 2008.
Our strong first quarter results, as demonstrated by continued growth in revenues and a reduction in the year-over-year net loss, are a result of our business discipline and focus on making the Oncotype DX breast cancer test standard practice, said Kim Popovits, President and Chief Executive Officer of Genomic Health. Looking to the future, we are making significant strides toward becoming a multi-product company. We believe that the positive results from the QUASAR validation study demonstrate the potential of the Oncotype DX platform to deliver clinically important information to physicians and patients with stage II colon cancer.
Additional First Quarter 2009 Financial Results
During the first quarter of 2009, approximately 50% of product revenue was recorded on an accrual basis and recognized at the time test results were delivered, reflecting established payment patterns from payors with coverage policies or contracts in place.
Total operating expenses were $38.5 million in the first quarter of 2009, compared with $30.6 million for the first quarter of 2008. Included in first quarter 2009 operating expenses were non-cash charges of $4.1 million, including $2.5 million of stock-based compensation expense, compared with $2.3 million of stock-based compensation expense in the same period in 2008, and $1.6 million of depreciation and amortization expenses, compared with $1.0 million of depreciation and amortization expense in the same period in 2008.
