Diagnostics

Genalyte is taking the single fingertip blood test to the next level (yet another Theranos competitor)

Here's a look at a company that could seriously be in the running for Theranos' biggest competitor.

The hype about a single fingertip-prick blood test has clearly become mainstream at this point, especially considering Theranos’ somewhat unfortunate publicity. But some companies, Genalyte for example, are taking a similar approach – more closely in comparison than some others. But they might have a better business model and approach that doesn’t inspire such focused criticism. It comes in the form of the Maverick Detection System.

Since Genalyte started in 2007, they have had the one drop of blood focus with an effort to provide full lab results for a patient in just minutes, ones that literally replicate your normal, full blood testing, eliminating the need to wait and return later for an additional visit.

CEO of Genalyte, Cary Gunn, is preparing to be swamped with back-to-back meetings at the JP Morgan Healthcare Conference, but he took some time beforehand to share with MedCity News why what they are doing is different and is prominent in the space.

What makes what you’re doing different from other fingertip-blood tests like what NOWDiagnostics is doing, for example?

My understanding is that what NOWDiagnostics is doing is based on lateral flow technology, which has been around for around 30 years. It’s the same technology you would use for a pregnancy or flu test. A lot of chemistry happens when the fluid flows onto the paper, a lot like a Polaroid photograph.

In the end, you get a positive or negative result from tests like that. But most doctors would consider that to be a screen. If they do get a positive, they would order a real test. It’s low-tech, great for screening technology, but it’s not usually a high-quality diagnostic result.

With our technology, I think of it like LabCorp in a box. We are bringing together all of the tests that a physician needs. We think of it as a complete solution, offering many tests because you never go to the doctor and need one test. To really solve a problem, for a doctor, you need to be able to offer a broad menu relevant to that specialty in one shot.

Our device is not a piece of plastic or paper. You can take one drop of blood and get results back to that doctor with all of the same quality control and level of service that you would get from a normal laboratory service in just minutes.

How wide spread is the use of the device thus far?Genalyte_Maverick No Monitor (1)(1)

We’ve been selling to pharma companies that are developing therapeutics – we have had a customer base there within clinical trial work. That was an early market opportunity. Really, our focus is getting into doctor’s offices. We are doing trials now in doctor’s offices to compare our results in 15 minutes with results that they get several days later from a standard clinical laboratory.

Where is the company in terms of current fund-raising?

We closed our Series C mid-last year in a $44 million round led by Khosla Ventures. We are not currently fund-raising, we will be in the future, but right now we are well-funded and moving forward.

Who would you consider to be direct competitors?

Well the most common comparison has been Theranos. That’s one we hear all the time. My rebuttal to that is that we’re actually in the doctor’s office, we’re not trying to do it through a pharmacy. I’m not really sure who wins, other than if you’re doing diagnostics in a pharmacy there might be more foot-traffic and you might sell another bottle of wine to someone who comes in.

Doctors really need to have results in hand when the patient is sitting in front of them. Diagnostics need to be available for a doctor and a patient in the same room at the same time. We are the only ones that can offer a complete solution there.

Can you offer any additional insights on the criticism Theranos has been faced with?

What Theranos is trying to do is incredibly difficult. It’s very hard to bring technology into life, to get it approved. I applaud there efforts with the breadth of menu they are trying to come out with all at once and with the price points – it’s incredibly aggressive and visionary.

It raises the point that diagnostics testing is broken, and it’s becoming a household discussion and a mainstream problem. Last week, two out of my three Uber drivers knew about Theranos and the controversy. They’ve made a noble attempt to address it, but they may have muddied the waters by being secretive.

What are your thoughts going into JP Morgan?

It’s our Super Bowl. We look forward to it every year. We will probably have 60 to 80 meetings over the course of three and half days. There’s nothing like it in terms of networking and progress.

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