Avant Diagnostics (AVDX) Announces a Partnership of Promise with Amarantus Diagnostics
The recent announcement by Avant Diagnostics, Inc (OTCQB: AVDX) and Amarantus Bioscience Holdings, Inc (OTCQX: AMBS) of their intention to tie the knot is a message of cheer for women who may be at risk for ovarian cancer. It also promises a partnership that will aggressively pursue opportunities in the rapidly expanding molecular diagnostics (MDx) market. A summary (https://dtn.fm/w2IbO) of a report from industry consultants Grand View Research estimates global molecular diagnostics market size at over $4.8 billion in 2014 with the U.S. market accounting for over $2.0 billion of that, and, according to a story (https://dtn.fm/D86pl) in The Journal of Precision Medicine, Grand View Research predicts the market will grow ‘at a compound annual growth rate (CAGR) of 8.7 percent to hit $8.02 billion by 2020, up from $4.47 billion in 2013. The growth will largely be driven by the rapidly increasing focus on theranostics and precision medicine, as well as the continuing development of advanced cancer diagnostic technologies like next-generation sequencing.’ Theranostics and precision medicine describe therapies with an individualized approach.
A press release (https://dtn.fm/AfG4c) on the Amarantus website proclaimed the purpose of the proposed merger was to ‘assist Avant Diagnostics in bolstering its product development and commercialization resources to accelerate the monetization of the combined company’s product pipeline… by harnessing the power of biomarkers based in the immune system.’ So what is molecular diagnostic testing, and how does it go about harnessing the power of biomarkers?
Molecular diagnostic testing has become possible since the successful mapping of the genes of humans. Spanning a period of over a decade, the Human Genome Project (HGP), initiated in 1990, was an international research effort to sequence and map all of the genes – together known as the genome – of members of our species, Homo sapiens. Completed in April 2003, the HGP gave us the ability, for the first time, to read nature’s complete genetic blueprint for building a human being. Now armed with that knowledge, it is possible to be able to detect specific sequences in deoxyribonucleic acid (DNA) or ribonucleic acid (RNA) that may be associated with disease.
Employing these insights, Avant Diagnostics’ OvaDx is the first large panel biomarker monitoring test for ovarian cancer. It measures the activation of the immune system in blood samples in response to early stage ovarian tumor cell development. A biomarker is a biological molecule found in blood, other body fluids, or tissues that may signal an abnormal process or a disease. A biomarker, also called a molecular marker or a signature molecule, may also be used to see how well the body responds to a treatment for a disease or condition.
The molecular diagnostics space has seen a lot of activity in recent times. A story (https://dtn.fm/npFh5) in GEN states that many startup MDx companies, especially the ones engaged in cancer detection, have been snapped up by the big boys. Roche (OTCQX: RHHBY) has been particularly spendthrifty. Last year, it acquired a majority stake in Foundation Medicine (NASDAQ: FMI) for $1.18 billion. The pharmaceutical giant also paid around $625 million for Ariosa Diagnostics, another $450 million for Iquum, $350 million for Genia Technologies and an undisclosed sum for Signature Diagnostics.
Roche wasn’t the only large player to jump into the fray. In 2014, Veracyte (NASDAQ: VCYT) purchased Allegro Diagnostics for $21 million; Myriad Genetics (NASDAQ: MYGN) bought Crescendo Bioscience for $245 million; bioMrieux (OTC: BMXMF) bought BioFire Diagnostics for $486 million and Rosetta Genomics (NASDAQ: ROSG) purchased PersonalizeDx for $2 million in cash plus stock. Large companies like Roche, Qiagen (NASDAQ: QGEN), Becton Dickinson (NYSE: BDX) and Abbott (NYSE: ABT) have recognized the potential of the MDx market. They’re looking for companies like Avant and Amarantus to unlock value. Soon, it may be time to put out the welcome mat.
For more information, visit the company website at www.avantdiagnostics.com
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