Cancer Genetics ($CGIX) got a green light from the California Department of Health to provide its oncology testing services for patients in the state, a big win that could help the company churn out a profit in the coming year.
The company's newly licensed laboratory will offer oncology testing services for patient samples, a service that could boost Cancer Genetics' visibility as a provider of DNA-based cancer diagnostics.
|Cancer Genetics CEO Panna Sharma|
"CGI is well positioned to continue to empower the personalization of treatment by providing our unique technologies and tests for a region that demands innovation and access to world-class medical technology," Cancer Genetics CEO Panna Sharma said in a statement. "Although cancer rates in the State of California are relatively stable, there is a tremendous need to improve the costs associated with patient management and therapeutic selection, and provide molecular insights that can enable earlier and more comprehensive diagnosis."
California represents a huge growth opportunity for emerging Cancer Genetics, which is based out of Rutherford, NJ. In 2014, more than 171,000 new cases of cancer were diagnosed in the state of California, representing more than 10% of the total cancer incidence in the U.S. That makes California the single largest oncology diagnostics market in the country.
With 6,800 new cases of non-Hodgkin's lymphoma and 4,300 of leukemia each year in California, the company stands to gain a foothold in the state with its proprietary diagnostics for those conditions.
CGI isn't profitable yet, but it's charting a course for growth. Last year the burgeoning outfit launched a diagnostic test to spot the most common form of leukemia and bought a genomic testing outfit to expand globally. The company also has ongoing relationships with leading cancer centers, such as Memorial Sloan-Kettering, the Cleveland Clinic, Mayo Clinic and the National Cancer Institute.
With a focus on blood, urogenital and HPV-related cancer tests, Cancer Genetics has CLIA-certified, CAP-accredited labs in several other states, including New York.
- get the press release