1. Medtech Insight
  2. >>Business
  3. >>Strategy

Cepheid Grapples With A Diagnostics Timetable

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.

Investors are looking more favorably at diagnostics than they have in years—driven in part by major success stories despite tumultuous public and private markets. In the public markets, Gen-Probe Inc. , and Roche 's Igen International Inc. are stand-out examples of diagnostics' ability to deliver stellar returns. (See "Roche Pays $1.4 billion for Igen and Gets Peace of Mind," IN VIVO, September 2003 Also see "Roche Pays $1.4 Billion for Igen and Gets Peace of Mind" - In Vivo, 1 September, 2003..)

Still, anyone looking at the field 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. For starters, its CEO and president, John Bishop, has a track record of success in building diagnostic businesses. The firm recently won a lucrative, steady biodefense contract from the United States Postal Service (USPS) as part of a consortium led by Northrup Grumman, and, in March, it introduced its first clinical diagnostic assay

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Medtech Insight for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Strategy

Edwards Lifesciences Holds 2025 EPS Outlook Despite Tariff Headwind

 
• By Shubham Singh

The brunt of the tariff exposure stems from Singapore and Costa Rica, which together account for an estimated 70% to 80% of the tariff-related cost burden. Less than 10% of the exposure is tied to China.

Mirvie Launches Predictive Blood Test For Preeclampsia

 
• By Marion Webb

Mirvie launched Encompass, a blood test to help identify women over age 35 who are at moderate risk for preeclampsia, and will conduct additional studies to support reimbursements from payers.

China Still ‘Attractive’ For Danaher Despite $50M VBP Drag

 
• By Shubham Singh

Apart from the reimbursement-driven turbulence in diagnostics, other aspects of Danaher’s China business are showing signs of resilience. Patient volumes remain strong and the company does not see evidence that the Chinese government is attempting to actively push Western suppliers out of its healthcare system.

Abbott’s FreeStyle Libre CGM Reduces Cardiovascular Disease-Related Hospitalization

 
• By Natasha Barrow

The REFLECT studies showed a 78% reduction in cardiovascular disease-related hospitalization for people living with type 1 diabetes with prior low blood sugar episodes.

More from Business

23andMe Purchase Will Let Regeneron Scale Drug Development

 
• By Alaric DeArment

The consumer genomics firm will operate as a subsidiary, while Regeneron plans to leverage its database for drug discovery and trial design efforts.

Disparities — Including Financials Shortcomings — Remain In Women’s Health, Execs Say

 
• By Brian Bossetta

FemTech leaders discussed some of the barriers that remain in unlocking the full potential of the women’s health market during SiS New York last week. They also offered solutions.

Mirvie Launches Predictive Blood Test For Preeclampsia

 
• By Marion Webb

Mirvie launched Encompass, a blood test to help identify women over age 35 who are at moderate risk for preeclampsia, and will conduct additional studies to support reimbursements from payers.