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GAITHERSBURG, Md. - GeneDx (NASDAQ:WGS), a genomic insights company with a market capitalization of $1.95 billion, announced the introduction of its ultraRapid Whole Genome Sequencing service, which promises to deliver comprehensive genomic results for neonatal and pediatric patients in intensive care units within as little as two days. The new service is set to become available for ordering in March. According to InvestingPro data, the company has demonstrated strong revenue growth of 29.4% over the last twelve months, though analysts anticipate continued unprofitability this year.
The ultraRapid genome testing aims to provide quick diagnoses for critically ill infants, potentially shortening their stays in neonatal intensive care units (NICU) and pediatric intensive care units (PICU). Genetic disorders are a leading cause of infant mortality, and undiagnosed cases can extend NICU stays by 15 to 20 days. Early genetic diagnosis through ultraRapid sequencing may lead to more than $15,000 in healthcare savings per child by reducing unnecessary treatments and expediting care decisions. The company maintains a healthy financial position with a current ratio of 2.41, indicating strong ability to meet short-term obligations.
GeneDx’s Chief Medical (TASE:PMCN) Officer, Dr. Paul Kruszka, emphasized the significance of rapid testing in clinical settings, stating that an early diagnosis can be crucial for children with genetic diseases. He also called for increased recognition of the benefits of genomic testing among healthcare professionals and insurance providers.
Despite the prevalence of genetic disorders in up to 25% of NICU patients, less than 5% currently undergo genetic testing. GeneDx’s new testing service will be accessible through its portal and integrated with Epic Aura, simplifying the process for health systems to offer this testing to more patients.
The company has enhanced its laboratory processes for more efficient sequencing, analysis, and interpretation of genomic data. This advancement, coupled with one of the largest and most diverse datasets in the industry, has enabled GeneDx to reduce costs and improve the speed of diagnosis. InvestingPro subscribers have access to 10+ additional exclusive insights about GeneDx, including detailed analysis of its financial health, growth prospects, and market position. Get access to the comprehensive Pro Research Report covering what really matters about GeneDx and 1,400+ other top stocks.
The ultraRapid Genome is an addition to GeneDx’s suite of genomic tests, which includes exome and rapid genome sequencing options. The company’s mission is to provide personalized medical care based on genetic diagnoses, leveraging its extensive rare disease dataset to inform health plans, aid in drug discovery, and enhance health system efficiencies.
This announcement is based on a press release statement from GeneDx.
In other recent news, GeneDx, a genomic insights company, has announced a partnership with UNC Health to provide advanced genetic sequencing within electronic health records (EHR). The integration with Aura, Epic’s specialty diagnostics suite, will allow health systems to order GeneDx’s tests directly within their EHR systems. The collaboration is expected to enhance access to genetic diagnostics and expedite patient treatment.
In addition, GeneDx has faced allegations of fraud, including illegal code-stacking. However, analysts from Jefferies and BTIG have dismissed these claims as unfounded and irrelevant to the company’s current operations. These firms have maintained their Hold and Buy ratings, respectively, for GeneDx’s stock despite the allegations.
Furthermore, GeneDx has recently released strong revenue and gross margin growth forecasts. The company anticipates a 54% increase in revenue for the year, reaching at least $299 million, and a 59% year-over-year rise for the fourth quarter, amounting to at least $92 million. The adjusted gross margin for the full year is projected to be at least 64%, with the fourth quarter expected to achieve a higher margin of at least 68%.
These are recent developments and are subject to changes in the healthcare industry and regulatory landscape.
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