When Spokane, Wash.-based PAML purchased a minority stake in Seattle-based CellNetix almost a year ago, the deal was intended to raise the game in merged anatomic and clinical pathology services. Now, the two labs will use that mission to make a go at molecular oncology. They have formed a new joint venture, known as Symbiodx. The fledgling venture has 15 full-time employees and is being headed by Anna Berry, M.D., who was previously a professor of pathology at the University of California San Francisco. Symbiodx’s roster also includes two molecular scientists, a bioinformatics expert, physicians focused on production and research and development, and a three-member sales staff. “This is a very intentional national oncology product. It is molecular and genetics, and it is a fully integrated portfolio,” said Francisco R. Velázquez, M.D., PAML’s president and chief executive officer. Symbiodx will sell its services to cancer centers throughout the United States, focusing initially on serving PAML’s partners, owners and existing clients through what Velázquez called a “soft launch” and eventually migrating east. He added that it would be similar to the business model that powers Massachusetts-based oncology laboratory Foundation Medicine. The demand for cancer-related diagnostics is high, particularly in relation to […]
When Spokane, Wash.-based PAML purchased a minority stake in Seattle-based CellNetix almost a year ago, the deal was intended to raise the game in merged anatomic and clinical pathology services.
Now, the two labs will use that mission to make a go at molecular oncology. They have formed a new joint venture, known as Symbiodx.
The fledgling venture has 15 full-time employees and is being headed by Anna Berry, M.D., who was previously a professor of pathology at the University of California San Francisco. Symbiodx’s roster also includes two molecular scientists, a bioinformatics expert, physicians focused on production and research and development, and a three-member sales staff.
“This is a very intentional national oncology product. It is molecular and genetics, and it is a fully integrated portfolio,” said Francisco R. Velázquez, M.D., PAML’s president and chief executive officer.
Symbiodx will sell its services to cancer centers throughout the United States, focusing initially on serving PAML’s partners, owners and existing clients through what Velázquez called a “soft launch” and eventually migrating east. He added that it would be similar to the business model that powers Massachusetts-based oncology laboratory Foundation Medicine.
The demand for cancer-related diagnostics is high, particularly in relation to targeting therapies based on the genetic composition for tumors. More than 1.6 million Americans are diagnosed with some form of cancer every year; nearly 600,000 die from the disease annually. The American Cancer Society estimates that nearly 41 percent of the population will be diagnosed with the disease during their lifetime.
According to the World Economic Forum, global health care expenditures on cancer are growing at a rate of 10 percent per year, far higher than those for other chronic conditions such as diabetes, cardiovascular disease, and chronic obstructive pulmonary disorder.
“Change is necessary. Anatomic pathology has not been a top priority for many of the national laboratories,” said Don Howard, M.D., CellNetix’s chief executive officer.
Altogether, Symbiodx is able to sequence some 200 clinical mutations and offers about 275 different tests. Its next-generation sequencing (NGS) capabilities—which the two labs spent nearly a year developing—extend to 68 different genes.
Cytogenetics and other genetic assays will be performed at PAML’s main laboratory in Spokane, with other panels performed at CellNetix’s lab in Seattle. CellNetix’s 50 pathologists will provide the interpretative services.
Velázquez noted that Symbiodx will focus on customer service, turning around tests within two to seven days depending on their complexity. Results will also include detailed pharmacogenomic data.
The expansion of PAML and CellNetix’s abilities speaks to the growing use of genomic medicine in fighting cancer, which is among the most complex of diseases to treat. But it also is expected to generate a substantial amount of revenue as well. Velázquez said Symbiodx’s NGS-related tests retail for between $2,000 and $2,400 apiece, with payers reimbursing about 80 percent of their prices on average.
“It’s more premium pricing” compared to PAML and CellNetix’s other panels, according to Velázquez.
Molecular oncology also has a substantial overseas market. Velázquez noted that in China, with a population nearly five times that of the United States, cancer is the leading cause of death among its urban population and second-leading among more rural dwellers. That country, like others in the developing world, has a high rate of smoking and its population tends to be exposed to significant levels of pollution.
Symbiodx will focus on the United States for now. However, Velázquez said it would make sense to explore China and other overseas markets in the next few years.
Takeaway: Molecular medicine with a focus on oncology services may drive the future growth of many regional laboratories.
