The recent announcement by Avant
Diagnostics, Inc (OTCQB: AVDX) and Amarantus Bioscience Holdings, Inc (OTCQX:
AMBS) of their intention to tie the knot is a message of cheer for women who
may be at risk for ovarian cancer. It also promises a partnership that will
aggressively pursue opportunities in the rapidly expanding molecular diagnostics
(MDx) market. A summary (http://dtn.fm/w2IbO) of a report from industry
consultants Grand View Research estimates global molecular diagnostics market
size at over $4.8 billion in 2014 with the U.S. market accounting for over $2.0
billion of that, and, according to a story (http://dtn.fm/D86pl) in The Journal
of Precision Medicine, Grand View Research predicts the market will grow ‘at a
compound annual growth rate (CAGR) of 8.7 percent to hit $8.02 billion by 2020,
up from $4.47 billion in 2013. The growth will largely be driven by the rapidly
increasing focus on theranostics and precision medicine, as well as the
continuing development of advanced cancer diagnostic technologies like
next-generation sequencing.’ Theranostics and precision medicine describe
therapies with an individualized approach.
A press release
(http://dtn.fm/AfG4c) on the Amarantus website proclaimed the purpose of the
proposed merger was to ‘assist Avant Diagnostics in bolstering its product
development and commercialization resources to accelerate the monetization of
the combined company’s product pipeline… by harnessing the power of biomarkers
based in the immune system.’ So what is molecular diagnostic testing, and how
does it go about harnessing the power of biomarkers?
Molecular diagnostic testing has
become possible since the successful mapping of the genes of humans. Spanning a
period of over a decade, the Human Genome Project (HGP), initiated in 1990, was
an international research effort to sequence and map all of the genes –
together known as the genome – of members of our species, Homo sapiens.
Completed in April 2003, the HGP gave us the ability, for the first time, to
read nature’s complete genetic blueprint for building a human being. Now armed
with that knowledge, it is possible to be able to detect specific sequences in
deoxyribonucleic acid (DNA) or ribonucleic acid (RNA) that may be associated
with disease.
Employing these insights, Avant
Diagnostics’ OvaDx is the first large panel biomarker monitoring test for
ovarian cancer. It measures the activation of the immune system in blood
samples in response to early stage ovarian tumor cell development. A biomarker
is a biological molecule found in blood, other body fluids, or tissues that may
signal an abnormal process or a disease. A biomarker, also called a molecular
marker or a signature molecule, may also be used to see how well the body
responds to a treatment for a disease or condition.
The molecular diagnostics space
has seen a lot of activity in recent times. A story (http://dtn.fm/npFh5) in
GEN states that many startup MDx companies, especially the ones engaged in
cancer detection, have been snapped up by the big boys. Roche (OTCQX: RHHBY)
has been particularly spendthrifty. Last year, it acquired a majority stake in
Foundation Medicine (NASDAQ: FMI) for $1.18 billion. The pharmaceutical giant
also paid around $625 million for Ariosa Diagnostics, another $450 million for
Iquum, $350 million for Genia Technologies and an undisclosed sum for Signature
Diagnostics.
Roche wasn’t the only large player
to jump into the fray. In 2014, Veracyte (NASDAQ: VCYT) purchased Allegro
Diagnostics for $21 million; Myriad Genetics (NASDAQ: MYGN) bought Crescendo
Bioscience for $245 million; bioMérieux (OTC: BMXMF) bought BioFire Diagnostics
for $486 million and Rosetta Genomics (NASDAQ: ROSG) purchased PersonalizeDx
for $2 million in cash plus stock. Large companies like Roche, Qiagen (NASDAQ:
QGEN), Becton Dickinson (NYSE: BDX) and Abbott (NYSE: ABT) have recognized the
potential of the MDx market. They’re looking for companies like Avant and
Amarantus to unlock value. Soon, it may be time to put out the welcome mat.
For more information, visit the
company website at www.avantdiagnostics.com
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