Science is turning away from standardized treatment now that there is an understanding of how an individual’s genetic make up affects its response to different treatment. It is no surprise then, that drug development companies are looking to become top dogs in precision medicine. (“Precision medicine” is defined by the National Institutes of Health as medical care designed to optimize efficiency or therapeutic benefit for particular groups of patients, especially by using genetic or molecular profiling.)
Success in precision medicine is dependent upon biomarkers that lend insight into a therapy’s efficacy. One simply cannot exist without the other, and for this reason, collaboration is crucial. Drug development companies are seeking partnerships with diagnostic companies in order to synchronize drug and diagnostic development.
Konica Minolta, Inc. (TOKYO: 4902) a global digital technology company specializing in imaging and data analysis, optics, materials, and nano-fabrication, is the latest company to move into this space. On July 6, it acquired privately held Ambry Genetics Corporation for an upfront payment of $800 million and an additional $200 million based on certain financial metrics over the next two years, valuing the acquisition up to $1.0 billion.
Ambry Genetics provides a suite of genetic testing solutions for inherited and non-inherited diseases as well as for numerous clinical specialties, including oncology, cardiology, pulmonology, neurology, and general genetics. Ambry is known as a pioneer and thought leader in genetic testing, as the first laboratory in the world to offer such tests as hereditary cancer panels and clinical exome sequencing.
The deal marks a strategic and important shift for Konica Minolta’s healthcare business as it transitions to precision medicine. Ambry’s genetic testing capabilities complement Konica Minolta’s advanced imaging technology to create the most comprehensive range of healthcare diagnostics for use by pharmaceutical companies, healthcare providers, payers, and consumers. Konica Minolta plans to bring Ambry’s capabilities first to Japan, and then to Europe.
