Labgenomics announced on the 24th that its CliaLab IMD has signed a service supply contract with Adventist Health, a major integrated delivery network (IDN) group in the United States.
The company explained that this contract signifies recognition of IMD's next-generation sequencing (NGS) cancer test's outstanding service quality and excellence by large hospitals in the U.S.
Adventist Health provides medical services to over 100 communities in the western U.S. and Hawaii and operates more than 440 medical facilities. Labgenomics plans to first supply services such as myeloid tests for leukemia, lymphoma, and other bone marrow-related diseases, as well as NGS-based cancer tests, to four hospitals.
A Labgenomics representative stated, “This contract is the result of more than three years of effort to establish a cooperative system with Adventist Health. Since LabgenomicsUSA acquired IMD last October, IMD has become more stable, its service recognition has increased, and the possibility of long-term service provision has been highly evaluated, leading to the successful contract signing.”
He added, “IMD has a shorter turnaround time (TAT) compared to other companies and has received high evaluations for the quality of myeloid cancer tests provided to large U.S. hospital chains such as Sutter Health and Cedars Sinai, which is advantageous for new business development.”
The company will begin supplying services to four hospitals located in California, starting with tests at Adventist St. Helena and Glendale hospitals. Based on this, the strategy is to expand the network to hospitals in other regions. Testing at Glendale Hospital began on the 19th, and tests at California hospitals will proceed from March, with significant sales expected to follow. The company stated that rapid growth in scale is anticipated due to the introduction of high value-added NGS cancer test services to large hospital chains.
A company representative emphasized, “We will expand our revenue volume by broadening the scope from NGS solid tumor testing services to various cancer test services including hematologic cancers. Based on references from large hospital chain contracts, we will aggressively expand our influence in the U.S. diagnostic market through active sales.”
IMD, acquired by LabgenomicsUSA last October, owns a total of three CliaLabs located in Sacramento, Aurora, and Berkeley in the western and central U.S. regions. It has strengths in enhancing the expertise and efficiency of NGS testing and providing comprehensive cancer diagnostic services at once, including immunohistochemistry (IHC) and flow cytometry tests. Through this, it continues to achieve results by building a business model cooperating with large hospital chains in the U.S.
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