In an effort to beef up its diagnostic oncology services, Quest Diagnostics is introducing a new and expansive molecular test panel and has teamed up with the Memorial Sloan-Kettering Cancer Center in New York City to seek more insight into testing results. The alliance between the nation’s largest lab and perhaps the most prominent oncology center in the United States will likely bolster Quest’s plans to aggressively expand its molecular cancer assays in the coming years. Under the terms of the arrangement, Memorial Sloan-Kettering will provide clinical analysis and treatment recommendations stemming from the results of OncoVantage, Quest’s new 34-gene cancer test for tumor biopsies that was introduced earlier this month. Quest will furnish deidentified test data to Memorial Sloan-Kettering, which will then provide an in-depth prognosis as well as potential treatment recommendations, including specific drug therapies. “This commitment to advancing molecular diagnostics in both a clinical and research context is central to our selection of Quest as a partner,” said Jose Baselga, M.D., Memorial Sloan-Kettering physician-in-chief. Laboratories such as Quest have been introducing pricey—and presumably high-margin—molecular tests that require high levels of accompanying analysis in order to better guarantee that payers will cover their costs. “By combining our broad […]
In an effort to beef up its diagnostic oncology services, Quest Diagnostics is introducing a new and expansive molecular test panel and has teamed up with the Memorial Sloan-Kettering Cancer Center in New York City to seek more insight into testing results.
The alliance between the nation’s largest lab and perhaps the most prominent oncology center in the United States will likely bolster Quest’s plans to aggressively expand its molecular cancer assays in the coming years.
Under the terms of the arrangement, Memorial Sloan-Kettering will provide clinical analysis and treatment recommendations stemming from the results of OncoVantage, Quest’s new 34-gene cancer test for tumor biopsies that was introduced earlier this month. Quest will furnish deidentified test data to Memorial Sloan-Kettering, which will then provide an in-depth prognosis as well as potential treatment recommendations, including specific drug therapies.
“This commitment to advancing molecular diagnostics in both a clinical and research context is central to our selection of Quest as a partner,” said Jose Baselga, M.D., Memorial Sloan-Kettering physician-in-chief.
Laboratories such as Quest have been introducing pricey—and presumably high-margin—molecular tests that require high levels of accompanying analysis in order to better guarantee that payers will cover their costs.
“By combining our broad market reach, which covers half the practicing physicians and hospitals in the United States, with Memorial Sloan-Kettering’s deep experience in cancer care and molecular science, we hope to illuminate the best possible cancer treatment options for patients across the country,” said Quest Chief Executive Officer Steve Rusckowski.
Although Quest officials declined to disclose the specific terms of the deal, a company spokersperson did say Memorial Sloan-Kettering would receive a percentage of the revenue for each OncoVantage assay, which retails for between $2,600 and $2,800, along with some additional licensing fees.
Memorial Sloan-Kettering has been flexing its oncology care muscles in recent weeks. Last month, it opened the Marie-Josée and Henry R. Kravis Center for Molecular Oncology in about 5,700 square feet of newly renovated laboratory space. The center was funded by a $100 million gift from financier Henry Kravis and his wife. A Quest spokesperson said the deal was not connected to the new molecular oncology arm.
Expansion aside, Memorial Sloan-Kettering’s researchers have also been able to track mutations in more than 340 genes linked to various forms of cancer.
“This relationship will empower clinicians to improve their patients’ health by identifying the best therapies for patients today and by identifying specific patients who may benefit from participation in clinical trials. The needs of tomorrow’s patients will be addressed by the deeper knowledge base we are building and its potential to drive the basic science needed to discover new therapies,” said Craig B. Thompson, M.D., Memorial Sloan-Kettering’s chief executive officer.
The agreement will continue unabated when Quest plans to release a greatly expanded version of OncoVantage next year. That assay will track more than 300 different genes linked to solid tumor cancers. It will retail for about $4,000, or about a 50 percent premium over the existing OncoVantage test.
“Quest will wholly develop and validate the test,” said spokesperson Wendy Bost, although she added that “Memorial Sloan-Kettering may advise us on which genes we may want to consider based on their vast experience in molecular medicine and cancer care.”
Both Quest and Memorial Sloan-Kettering said they would jointly study the genetic data linked to the tests to help design more effective treatments in the future.
Takeaway: Quest is aligning itself with a premier cancer center to help ensure brisk sales of its new OncoVantage test.
