The Principals of NorthStar Capital Advisors are pleased to announce the election of Alex Charlton (Managing Director, NorthStar) to the Board of Directors of Genetics Squared, Inc. a leading developer of innovative Molecular Diagnostics targeting cancer.
Breakthroughs
in molecular testing (and genomics) are delivering a new class of
reliable, predictive information that is transforming the practice of
medicine and medical outcomes. Consequently, the molecular testing
market is experiencing rapid growth and is expected to continue to
expand at over 3X the rate of the Clinical Diagnostics market as a
whole. Because of the medical and financial value created by molecular
diagnostics they command premium prices and generate large profit
margins. Proprietary molecular diagnostic tests which enable medical
intervention or treatment (such as the Oncotype Dx breast cancer
prognostic test) can command prices in excess of $3,000 per test. Companies with proprietary
molecular diagnostic tests that deliver clinically and financially
meaningful value realize significant valuations and are increasingly
targets for acquisition by multi-national diagnostic and therapeutic
companies.
Ann Arbor, Michigan headquartered Genetics Squared, Inc. has succeeded in creating a proprietary (patent protected) platform technology called Evolver which accelerates the development of innovative molecular diagnostic tests. Utilizing the Evolver technology, Genetics Squared is completing development of a breakthrough Colorectal Cancer Prognostic test (the ‘CRC Prognostic test’), which promises to provide clinicians with greatly improved prognostic accuracy. The Genetics Squared CRC Prognostic test predicts which colorectal cancer patients are likely to experience a recurrence of their cancer following initial treatment. Patients likely to experience a recurrence of their cancer are ideal candidates for adjuvant therapy. Adjuvant therapy typically involves chemo or radiotherapy given in addition to surgery, and can greatly reduce the risk of the cancer coming back and improve survival rates. Adjuvant therapy administered before the cancer recurs significantly reduces the overall cost of treatment, from ~$280,000 per patient to ~$53,000 per patient. Consequently, by identifying patients most likely to benefit from adjuvant therapy the Genetics Squared CRC Prognostic test has the ability to reduce the cost of care, improve medical outcomes while also overcoming the serious limitations of legacy colorectal prognostic tests.
The Genetics
Squared CRC Prognostic test will be priced at ~$3,500 per test (comparable to
the reimbursement rates for other cancer prognostic tests). At this price,
every ~$1 spent on CRC Prognostic testing will result in ~$5.50 saved by the
healthcare system. Management hopes to complete development and introduce the
CRC Prognostic test commercially by Q1, 2011..
Utilizing the Company’s proprietary Evolver technology, Genetics Squared is also positioned to develop a portfolio of valuable diagnostics, prognostics and therapeutic tests.
Commenting on Mr. Charlton’s election to the Board of Genetics Squared, Dr. Prasad Sunkara (co-founder of NorthStar) explained, “This is one of the most exciting areas of the Life Science industry both in terms of innovation and the potential to generate exceptional returns for shareholders. Genetics Squared appears to be well positioned to succeed in this high-growth sector. As they complete their development work the Company will increasingly focus on the task of commercialization. Mr. Charlton has the commercial experience that is likely to prove helpful to Genetics Squared having previously served on the Board of companies which successfully transitioned from development to commercialization and advised leading diagnostic and cancer sector companies such as Abbott Diagnostics and Genentech.”
Mr. Bill Worzel, Chief Executive Officer of
Genetics Squared added, “As we plan and implement our business building
program, Mr. Charlton’s commercial and operating experience will be a valuable
resource for Genetics Squared, particularly as we approach the commercial
roll-out of our prognostic test in
2010.”
Mr. Charlton will continue to serve as a Managing Director with NorthStar.
About Genetics Squared, Inc.: Genetics Squared is privately owned and headquartered in Ann Arbor, Michigan. Genetics Squared has assembled an experienced management team and scientific advisory board. In addition the Company has established a network of partnerships and collaborations with organizations including The University of Michigan's Department of Pathology, Professor Stephen B. Gruber, M.D., Ph.D., M.P.H of The University of Michigan School of Public Health, Sanford Health - BioBank, University of Southern California, Department of Pathology and the Netherlands Organization for Applied Scientific Research.