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Investing.com -- GeneDx Holdings Corp (NASDAQ:WGS) stock surged 18.5% after the American Academy of Pediatrics (AAP) issued updated guidance recommending exome and genome sequencing as first-tier tests for children with global developmental delay or intellectual disability.
The new guidelines represent a significant shift in pediatric medicine, positioning general pediatricians to initiate genetic testing earlier in the diagnostic process. This change could substantially benefit GeneDx, a leader in genomic testing, as the company is well-positioned to support the implementation of these new recommendations.
The AAP’s updated guidance cites superior diagnostic yield and higher cost-effectiveness when genome sequencing is pursued earlier rather than as a last resort. This marks a departure from the organization’s 2014 recommendations, which had suggested narrower testing methods now considered outdated given advancements in genomic technology.
"This is a milestone in pediatric medicine that validates what many healthcare professionals have recognized - that earlier access to comprehensive genetic testing leads to faster diagnoses and better outcomes for children," said Katherine Stueland, President and CEO of GeneDx. The company aims to reduce the average five-year "diagnostic odyssey" that many families currently endure.
GeneDx has sequenced more than 800,000 exomes and genomes and built one of the largest rare disease datasets. The company delivers standard results in as little as three weeks, with insurance coverage for testing expanding across commercial payors and Medicaid programs.
The company recently launched a brand campaign called "Diagnosis is Power" to educate clinicians and parents about the benefits of earlier genetic testing, aligning with the new AAP recommendations that could significantly expand the market for GeneDx’s testing services.
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