Smaller labs, hospital outreach labs, and labs servicing high numbers of elderly are thought to face the highest risks.
The biggest losers following the release of the preliminary PAMA rates may be Quest and LabCorp, analysts said today.
Genomic Health will gain exclusive worldwide rights to develop and sell an IVD version of its Oncotype DX breast cancer test on Biocartis' Idylla platform.
The genomic test is designed to help doctors decide which patients are at low enough risk that they can be more conservatively managed.
Total revenue for the quarter was $85.5 million compared to $82 million in Q2 2016, while net loss shrank to $2.7 million or $.08 per share.
The test, developed with Pfizer, could identify renal cancer patients who would experience recurrence, but not who would benefit from adjuvant Sutent.
The company will return both a genomic prediction of disease aggressiveness and a read on 10-year risks for metastasis and for disease-specific mortality.
The company missed analyst estimates on the top line but beat the bottom line with growth in prostate cancer and international breast cancer test sales.
The Medicare contractor proposed coverage for several cancer assays, but would not cover molecular respiratory virus assays or a test for inflammatory bowel disease.
In a note to investors, the investment bank said the company is going through a transition phase, and has limited potential for near-term upside.