Personalized genetics lab Gene by Gene has been slashing the prices of its tests—a move that could have an eventual impact on testing for clinical purposes, observers say. The Houston-based company’s recent price cutting move involves its maternal DNA, or mtDNA, test. Gene by Gene cut the price last month by more than 70 percent—from $159 to $49. The results were instantaneous, according to Gene by Gene President Bennett Greenspan—daily test volumes doubled. The company was receiving about 70 orders a day prior to the price drop, Greenspan said. “This will dramatically expand the number of people doing a soft DNA test,” he observed. In addition to cutting the cost of its mtDNA test, Gene by Gene reduced prices for its mitochondrial and Y DNA assays earlier this year. According to Greenspan, the company is performing about 12,000 assays a month, up about 20 percent from a year ago. Despite the growth and price-cutting, Greenspan does not believe the genetic fact-finding his clients are embarking on will lead to clinically oriented molecular testing, such as searching for genetic predisposition to breast cancer and other medical conditions. “I don’t think it will put pressure on clinical testing, because it is a […]
Personalized genetics lab Gene by Gene has been slashing the prices of its tests—a move that could have an eventual impact on testing for clinical purposes, observers say.
The Houston-based company’s recent price cutting move involves its maternal DNA, or mtDNA, test. Gene by Gene cut the price last month by more than 70 percent—from $159 to $49.
The results were instantaneous, according to Gene by Gene President Bennett Greenspan—daily test volumes doubled. The company was receiving about 70 orders a day prior to the price drop, Greenspan said.
“This will dramatically expand the number of people doing a soft DNA test,” he observed.
In addition to cutting the cost of its mtDNA test, Gene by Gene reduced prices for its mitochondrial and Y DNA assays earlier this year. According to Greenspan, the company is performing about 12,000 assays a month, up about 20 percent from a year ago.
Despite the growth and price-cutting, Greenspan does not believe the genetic fact-finding his clients are embarking on will lead to clinically oriented molecular testing, such as searching for genetic predisposition to breast cancer and other medical conditions.
“I don’t think it will put pressure on clinical testing, because it is a consumer product—but I would like it to,” Greenspan said.
Others aren’t quite so sure. Michael Snyder, principal of Clinical Lab Business Solutions LLC in Cherry Hill, N.J., believes it could pressure clinical labs to cut prices.
“It sets an expectation” that clinical labs could undertake gene sequencing testing for less than they currently charge, he noted.
Gene by Gene does perform clinical testing, primarily BRCA1 and BRCA2 assays for one of Israel’s health services. That’s because there is no patent on the gene in that country, according to Greenspan. Myriad Genetics owns the gene patents in the United States.
Greenspan noted that the company could make an announcement that would impact clinical testing sometime in June. That appears to coincide with an expected ruling from the U.S. Supreme Court as to whether genes can be patented.
