GeneDx to acquire AI genomics firm Fabric Genomics

GAITHERSBURG, Md. & OAKLAND, Calif. – GeneDx, a genomic insights company, announced its intent to acquire Fabric Genomics, a company specializing in AI-powered genomic interpretation. This strategic move aims to enhance GeneDx’s capabilities in genomic medicine, particularly in decentralized testing and interpretation.

The acquisition, expected to close in the second quarter of 2025, will integrate Fabric Genomics’ AI platform with GeneDx’s extensive rare disease data asset. This combination promises to deliver more accessible and efficient genomic insights globally, which is increasingly critical for improved clinical outcomes and healthcare cost savings. GeneDx’s solid financial position is evidenced by its healthy current ratio of 3.61, indicating strong ability to meet short-term obligations. For deeper insights into GeneDx’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

Katherine Stueland, President and CEO of GeneDx, emphasized the significance of the transaction in advancing the integration of genomic data into standard care. She highlighted that the addition of Fabric Genomics will enable healthcare partners to provide groundbreaking genomic insights to patients worldwide.

Fabric Genomics’ AI-driven platform has been instrumental in interpreting complex genetic disease cases, supporting patient diagnosis at major health systems and academic centers globally. The acquisition will allow health systems to either use GeneDx’s centralized lab for sequencing or perform sequencing in-house while accessing GeneDx’s data through Fabric’s interpretation platform.

Martin Reese, PhD, Co-Founder, President, and CEO of Fabric Genomics, expressed enthusiasm for the merger, stating that it will expedite the delivery of genome interpretation and enhance patient care globally.

GeneDx’s acquisition of Fabric Genomics is poised to expand its market reach with scalable revenue streams, including genomic testing in neonatal intensive care units (NICUs) and genomic newborn screening (gNBS). With an established presence in over 750,000 exomes/genomes sequenced, GeneDx’s dataset will serve as a significant asset for AI development and data monetization.

Under the terms of the agreement, GeneDx will pay up to $33 million in cash upon closing, with the total consideration potentially reaching $51 million upon achieving certain milestones. Post-acquisition, Fabric will continue to operate independently, with GeneDx providing commercial support to accelerate its growth both domestically and internationally.

This acquisition is based on a press release statement and is expected to close subject to customary closing conditions.

In other recent news, GeneDx Holdings Corp reported impressive financial results for the fourth quarter of 2024, surpassing earnings and revenue expectations. The company achieved an earnings per share of $0.08, contrasting with the anticipated loss of $0.48, and reported revenue of $95.3 million, significantly exceeding the forecasted $61.7 million. This marks GeneDx’s second consecutive profitable quarter, with revenue from exome and genome testing growing by 101% year-over-year. Additionally, GeneDx has projected revenue guidance for 2025 between $350 million and $360 million, with an expected growth of at least 30% in exome and genome volume. The company recently launched an Ultra Rapid Whole Genome Sequencing product, aiming to enhance its market position. Analyst firms such as TD Cowen and Craig Hallum Capital Group have taken note of these developments, with discussions focusing on the company’s strategic growth initiatives and operational efficiencies. GeneDx’s expansion of its sales team and integration of new operational strategies further underscore its commitment to growth.

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