Foundation Medicine deepens its Novartis ties with new deal

Diagnostics luminary Foundation Medicine ($FMI) has expanded its relationship with pharma giant Novartis ($NVS), giving the drugmaker more access to its gene profiling technology to help develop cancer treatments.

The two have been partners since 2011, and the new deal extends into 2016, tasking Foundation with lending out the technology behind FoundationOne, a sequencing-based diagnostic that combs 236 cancer-related genes to match patients with their ideal treatments. Novartis has already been using the company's genomic profiling system to vet potential trial participants, and the latest agreement will let the drugmaker to tap some of Foundation's Big Data capabilities, CEO Michael Pellini said.

"In addition to providing comprehensive genomic profiling for patients in Novartis clinical trials, this expanded agreement will allow Novartis to take advantage of our unique and growing database of molecular information to support the evaluation and development of Novartis' oncology drug candidates, biological targets and clinical trials," Pellini said in a statement.

Partnerships like the one with Novartis make up the majority of Foundation's revenue stream, and its client list includes sizeable drug developers like Johnson & Johnson ($JNJ) and Sanofi ($SNY). But the Cambridge, MA, company is making a push to expand the sales of its clinical assays, pushing FoundationOne and launching a hematologic-focused version of the test last year.

In September, Foundation rode the wave of life sciences outfit cashing in on an IPO boom, going public and reaping $106 million in a top-of-range offering. The company's shares roared in its first week on the market, opening at almost twice their pricing and peaking at nearly $40 a piece before settling down at around $25.

- read the statement

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