Genomic Health Inc. (NASDAQ:GHDX) is Attracting Smart Money


In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Genomic Health Inc. (NASDAQ:GHDX) reported that Baker Bros. Advisors has picked up 13,917,146 of common stock as of 2017-06-01.

The acquisition brings the aggregate amount owned by Baker Bros. Advisors to a total of 13,917,146 representing less than 40.4% stake in the company.

For those not familiar with the company, Genomic Health, Inc. is a healthcare company that provides genomic-based diagnostic tests to personalize cancer treatment. The Company develops and commercializes genomic-based clinical laboratory services. The Company’s Oncotype IQ Genomic Intelligence Platform is consisted of its flagship line of Oncotype DX gene expression tests, as well as its Oncotype SEQ Liquid Select test. Its research and development activities are focused on developing a pipeline of tests to optimize the treatment of various cancers including breast, colon, prostate and other cancers. It offers its Oncotype DX tests as a clinical laboratory service, where it analyzes the expression levels of genes in tumor tissue samples and provides physicians with a quantitative gene expression profile expressed as a single quantitative score, which it calls a Recurrence Score for invasive breast cancer and colon cancer, a DCIS Score for ductal carcinoma in situ (DCIS), and a Genomic Prostate Score, for prostate cancer.

A glance at Genomic Health Inc. (NASDAQ:GHDX)’s key stats reveals a current market capitalization of 1.08 Billion based on 34.34 Million shares outstanding and a price at last close of $32.02 per share.

Looking at insider activity, there are a few transactions worth noting.

Specifically, on 2016-08-15, Baker picked up 89,896 at a purchase price of $27.02. This brings their total   holding to 11,348,958 as of the date of the filing.

On the sell side, the most recent transaction saw Shak unload 5,000 shares at a sale price of $29.40. This brings their total holding to 331,103.

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Genomic Health Inc. (NASDAQ:GHDX) as things move forward to see if its progress aligns with these transactions.

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