Genetic testing isn’t yet the go-to for identifying a patient’s risk for conditions such as cancer and Alzheimer’s disease—insurers generally cover a genetic test only if there’s strong scientific evidence it could provide a health benefit and is recommended by the patient’s doctor—but the industry has grown faster with advanced genetic-risk understanding and improved reimbursement.
Panelists at the inaugural Global Genes RARE Partnering and Investor Forum last month at Hotel Irvine said that over the past 12 months, some insurers have expanded coverage of genetic testing.
Global Genes is a rare-disease patient advocate that put on the inaugural forum to bring together emerging biotech companies, scientists and researchers, and investment partners to accelerate partnership and drug development.
Local genetics companies have also been on the move, including Ambry Genetics Corp. in Aliso Viejo and CombiMatrix in Irvine. Both companies—the former provides genetic tests for inherited and noninherited diseases, and the latter specializes in chromosome abnormalities pregnancy tests—announced M&A news in July.
Japanese office equipment manufacturer Konica Minolta Inc. said it would buy Ambry for up to $1 billion, including $800 million in cash upfront. The deal is on track to close by year-end.
CombiMatrix, which offers tests such as prenatal diagnosis, miscarriage analysis, and pediatric developmental disorders, will join Invitae Corp. in San Francisco. The transaction is a $33 million all-stock merger. CombiMatrix recently traded at $7.50 per share for a $22 million market cap.
Expansion
Kaiser Permanente will open 31 additional Target clinics in Southern California over the next three years. The collaboration, which began in 2014, provides in-store clinical care services to shoppers. The clinics are staffed by Kaiser Permanente in Target Corp. stores.
There’s currently one clinic each in West Fullerton, Mission Valley and Vista in San Diego County, and Fontana in San Bernardino County.
Four additional clinics are scheduled to open in November in North Irvine, Chula Vista and Santee in San Diego County, and Hemet in Riverside County.
Kaiser plans to staff the clinics with licensed nurse practitioners and vocational nurses, and will make doctors available via telemedicine consultation. Offered services include pediatric care and women’s healthcare.
MinuteClinic, the retail medical clinic of CVS Health, will provide administrative services to Kaiser members. Eligible Kaiser members will be able to receive a one-time fill at a CVS Pharmacy colocated with a Target clinic.
Target clinics accept cash or credit, as well as a broad range of health insurance plans.
Dry Eye
Johnson & Johnson Vision in Santa Ana will buy Tear Science Inc. in Morrisville, N.C. Tom Frinzi, worldwide president of the surgical platform at J&J Vision, said the medical device maker, whose devices treat dry-eye disease, is “at a very high level, very complementary to what we do here in Southern California,” adding that dry eye is a great unmet need.
Terms were undisclosed.
J&J Vision’s two divisions are a surgical unit in Santa Ana and a consumer contact lens unit in Jacksonville, Fla.
Tear Science makes ophthalmic devices designed to identify and treat meibomian gland dysfunction—blockage or another abnormality of the meibomian glands that results in eye-moisturizing tear supply to evaporate too quickly. It’s the leading cause of dry eye. Tear Science’s LipiFlow Thermal Pulsation System received Food and Drug Administration clearance in 2011.
Ophthalmic market researcher Market Scope projects the market for devices and products to treat dry eyes will grow to $4.5 billion by 2020.
Asia Launch
Irvine-based ChromaDex Corp. launched its dietary supplement, Tru Niagen, in Asia via a new partnership with Hong Kong-based health and beauty retailer A.S. Watson. Its product is now available in over 100 stores in Hong Kong and online.
The supplement is said to have anti-aging benefits because key ingredient NAD+ helps boost energy.
Watson is the largest health and beauty retailer in Asia and Europe, with over 13,500 stores in 24 markets.
“The critical milestone is the first step in executing our broader expansion plans for Tru Niagen,” said Robert Fried, ChromaDex chief strategy officer.
ChromaDex established the connection when it secured a $25 million strategic investment from Hong Kong billionaire Li Ka-shing in April. The final $5.1 million tranche of the investment was completed in August. The investment was made through Horizons Ventures in Hong Kong, one of Li’s funds that invest in technology-focused startups.
ChromaDex recently traded at nearly $4 per share for a $184 million market cap.
