EDEN PRAIRIE, MINNESOTA–Teleradiology, meet telegenetics.
From analyzing CT and MRI scans to testing blood and urine samples, Minnesota is establishing itself as an incubator for so-called “telemedicine” firms, a growing industry that relies on software and super-fast Internet connections to erase geographic boundaries.
Virtual Radiologic Corp. of Minnetonka, one of the last Minnesota companies to go public, helped pioneer teleradiology, a model that allows hospitals to send CT and MRI scans to any available radiologist across the country and receive their reads, or interpretations of data, over encrypted broadband systems.
Now Access Genetics, based in Eden Prairie, has taken it one step further by allowing doctors with different expertise, like urologists and OBGYNs, to view DNA test results and collaborate on diagnosis and treatment — all through a special Web site and virtual software.
“We’re taking Virtual Radiologic to the next level,” said CEO George Hoedeman. “It’s not just about storing the data but to review them together. The higher level of contact should allow physicians to make more informed decisions.”
Founded in 2001, Access Genetics turned a profit four years later. Today, the company generates about $10 million in revenue and employs about 50 people. LifeScience Alley, an industry trade group, recently named Access Genetics as one of the year’s top new medical technology companies in Minnesota.
“DNA testing is very relevant to the marketplace today,” said Ethan Rooney, managing partner and co-founder of contract research firm Symbios Clinical Inc. in Blaine. “Expanding access to [genetic] testing and facilitating results through the Internet is [crucial] to health care reform. Providing a technology-based solution allows better care to a broader population.”
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Rooney was one of several industry experts who judged LifeScience Alley’s annual Technology Showcase winners.
Telemedicine forms a major part of “personalized medicine,” the idea that doctors and companies can design treatments that better suits each patient’s biological makeup. Such a vision requires the ability to diagnose diseases quickly and collaborate on treatments, experts say.
The market for remote-patient monitoring and telemedicine services could hit $109 billion by 2015, compared to $7 billion last year, a compound annual growth rate of 92 percent, according to a recent report on personalized medicine by PricewaterhouseCoopers.
Access Genetics’ core product is TeleGene, a secure Internet-based molecular information system. The technology allows doctors, patients, genetic counselors and lab technicians across the country to view and discuss real-time DNA tests and customized patient reports, using a myriad of communications tools, including text, chat and video.
For instance, an OBGYN in Minnesota may discover abnormal cell growth in a patient’s pap smear. The doctor sends the sample to a lab, which analyzes the material and posts the data to TeleGene. The OBGYN can then discuss with a urologist in Texas to see if the patient contracted a sexually transmitted virus, or perhaps consult with a oncologist in Illinois to determine if the cell growth is cancerous.
“We collapse time and distance to get the right answers faster to patients and doctors,” Hoedeman said.
Access Genetics distributes the software via the Internet and charges about $2 to $35 per use of TeleGene depending on the test’s complexity. In what Hoedeman calls a “power cord strategy,” the company uses TeleGene to market its higher-priced premium services to customers, including consulting and written lab materials.
Dr. Mark Barcelo, medical director for Lake Health Lab Services and Drs. Hill and Chapnick Inc. in Painesville, Ohio, has used TeleGene for a year. If he needed to test a patient’s cells for bladder cancer, Barcelo says the system provides DNA results in a day or two via e-mail or the Internet versus four to ten days from a traditional lab.
TeleGene “provides the ability and tests and interprets the data without the expense of laboratories,” Barcelo said. “These are expensive tests. And labs are expensive to set up.”
