NEW YORK, May 20, 2015 /PRNewswire/ -- Genetic testing for inherited diseases has been a volatile industry space in recent years, according to Kalorama Information but one with great potential and competition. Outside of testing for patient testing for oncology risk, the healthcare market research firm said that a significant component of genetic testing is reproductive health-oriented testing for carrier genes and prenatal conditions. Atop the high-growth market for non-invasive prenatal testing (NIPT) are Sequenom and Illumina, the latter positioned through its acquisition of Verinata and as a supplier of sequencing reagents, consumables and instruments.
"Despite the success and consolidation of share between Sequenom and Verinata, ample opportunity remains as signaled by recent investment to the two companies' competitors and Illumina's unique business strategy in the NIPT space," said Emil Salazar, analyst for Kalorama information.
Kalorama's report The Market for Prenatal, Newborn and Carrier Genetic Testing can be purchased or viewed at: http://www.kaloramainformation.com/redirect.asp?progid=87478&productid=8963025.
Salazar notes that with its acquisition of Verinata in January 2013, Illumina strained its relationship with customer Sequenom that had been using Illumina's sequencing instruments, reagents and consumables for its own NIPT lab. The relationship was ultimately preserved through a January 2015 agreement between Sequenom and Illumina that provided for the pooling of intellectual property (IP) between the two companies relating to NIPT.
While highlighting NIPT's contentious IP landscape (Sequenom has outstanding infringement claims against Natera, Ariosa Diagnostics [Roche] and DNA Diagnostics Center), Sequenom and Illumina's 2015 agreement reflects the latter's view that NIPT remains a wide enough market space for the company to function as both service provider and lab supplier. Illumina can now also more effectively seek out clients worldwide for NIPT technology licensing, which is significant to the development of a more globally distributed and robust testing market.
Kalorama notes that ongoing infringement claims and the uniting of Sequenom and Illumina have done little to dissuade investment in other companies within the NIPT testing space:
- December 2014 – Roche acquired Ariosa Diagnostics, a private molecular testing service company that provides a cell-free DNA NIPT testing service on an Affymetrix microarray platform. Roche seeks to also commercialize the test on a next-generation sequencing (NGS) system.
- February 2015 – CombiMatrix entered into an agreement to issue securities in a direct offering to institutional pre-existing investors for proceeds totaling $4.9 million.
- April 2015 – Natera raised $55.5 million in funding led by investment firm Sofinnova Ventures. Other investors in the financing round included Capital Research and Management, Franklin Templeton Investments, Jennison Associates, RA Capital Management, Healthcor Partners and OrbiMed Advisors.
Kalorama notes that CombiMatrix's microarray-based NIPT service functions as a reflex or confirmatory test to Sequenom's NGS-based tests. In addition to the deals listed above, Claritas Genomics and Invitae attracted funding in early 2015 of $15 million and $117 million respectively; the two companies product portfolios prominently feature pediatric genetic screening.
Kalorama Information's The Market for Prenatal, Newborn and Carrier Genetic Testing discusses the technologies and tests used in chromosomal analysis and in the diagnosis of inherited disorders and the detection of carriers of inherited diseases. The growing global genetic testing laboratory services market is discussed. The report provides the world markets for prenatal, newborn, postnatal, and carrier genetic testing for 2014 to 2019. In addition, company revenues are provided for the previous three years. Further, this report includes financial information on deals involving companies in the molecular diagnostic inherited disease/prenatal testing field, summarized within report tables.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.
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SOURCE Kalorama Information