A Growing Strand: Medco and DNA Direct Intertwine

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A Growing Strand: Medco and DNA Direct Intertwine

Chris Tsai | February 8, 2010 - Leave a Comment

Companies	Medco Health Solutions DNA Direct
Industries	Biotech & Life Sciences Diagnostics Health Plans

Image by ynse In perhaps one of the first validations of the personalized medicine space, pharmacy benefits manager (PBM) Medco Health Solutions recently announced that it purchased DNA Direct, a private genetic testing service firm based in San Francisco. Financial details were not disclosed.

DNA Direct is the first genomics-focused firm to offer accredited programs to help payors ensure the appropriate use of 2,000 genetic and molecular tests. It assists physicians and patients deciding if genetic tests are appropriate and how to Understand the results.

From Medco’s perspective, adding DNA Direct will assist Medco’s push for growth in the personalized medicine industry. “We get the depth and breadth of their expertise,” said Medco’s CMO Robert Epstein. “Having genetic counselors is a tremendously important capability that we don’t have today.”

With personalized medicine a relatively new and fast growing industry, standards for test are still not well defined. According to DNA Direct founder Ryan Phelan, inappropriate testing will account for approximately 20 percent of the forecasted $8 billion to be spent on molecular diagnostics in 2010.

Personalized medicine refers to the use of a person’s unique clinical, genetic and genomic information to create tailored medical care and disease treatments. By understanding an individual’s unique genetics, the goal is to create effective preventive health care and drug therapies while the patient is still healthy or at an early stage of illness.

Image courtesy of ynse

In perhaps one of the first validations of the personalized medicine space, pharmacy benefits manager (PBM) Medco Health Solutions recently announced that it purchased DNA Direct, a private genetic testing service firm based in San Francisco. Financial details were not disclosed.

DNA Direct is the first genomics-focused firm to offer accredited programs to help payors ensure the appropriate use of 2,000 genetic and molecular tests. It assists physicians and patients deciding if genetic tests are appropriate and how to Understand the results.

From Medco’s perspective, adding DNA Direct will assist Medco’s push for growth in the personalized medicine industry. “We get the depth and breadth of their expertise,” said Medco’s CMO Robert Epstein. “Having genetic counselors is a tremendously important capability that we don’t have today.”

With personalized medicine a relatively new and fast growing industry, standards for test are still not well defined. According to DNA Direct founder Ryan Phelan, inappropriate testing will account for approximately 20 percent of the forecasted $8 billion to be spent on molecular diagnostics in 2010.

Personalized medicine refers to the use of a person’s unique clinical, genetic and genomic information to create tailored medical care and disease treatments. By understanding an individual’s unique genetics, the goal is to create effective preventive health care and drug therapies while the patient is still healthy or at an early stage of illness.

Source: Reuters