Cepheid Grapples With A Diagnostics Timetable
This article was originally published in Start Up
Anyone looking at investing in diagnostics would do well to consider the cautionary, still-evolving tale of Cepheid as an indication of the complexities inherent in building a new diagnostic enterprise. Cepheid has more going for it than most diagnostic start-ups, including steady revenues from innovative products and an experienced management team with a proven track-record at deal-making. But it faces continual funding issues and a longer-than-expected time frame to profitability.
You may also be interested in...
Roche's $1.4 billion acquisition of Igen left Igen shareholders gleeful and some Roche observers a bit wary of the high price tag. But by ending protracted litigation between the two companies, the deal protects one of Roche Diagnostics' core franchises, the central laboratory business.
Beyond a few key applications in HIV, HCV and sexually transmitted diseases, genomics has yet to make its presence felt in infectious disease testing. Technological advances in molecular testing, as well as a better understanding of genomics and a growing interest in defenses against bioterrorism are generating interest in new approaches to diagnosing infectious diseases and determining drug resistance. Several small companies are leading the way.
Three central European industry associations have agreed to develop joint initiatives and form a collective voice with which to lobby decision-makers on medtech themes of mutual interest.