Earlier this summer, Nanosphere, a promising private nanotech start-up, announced its intention to file an IPO. At the time of the announcement there was some speculation within nanotech circles that the move was just prelude to a merger with one of its larger rivals in the field of molecular diagnostic testing.
The possibility of a merger just became a lot more likely. Why? This is because on Monday the Food and Drug Administration approved a new genetic test made by Nanosphere that will help patients better understand how they might metabolize the anti-blood clot medicine warfarin—which is sold under the brand name Coumadin and is manufactured by Bristol-Myers Squibb.
The importance of this event can’t be underestimated. According to a 2006 study, FDA economists have estimated that genetic testing could prevent 85,000 “serious bleeding events” and 17,000 strokes a year. In the total, the savings for the health care system could reach $1.1 billion.
Now, I would encourage ihealth care executives to take the above number with a dose of salt, but the FDA approval does marks a major milestone for Nanosphere in that it serves as a major validation of its technology.
It also makes Nanosphere a much more attractive acquisition target for a company such as Roche, Abbott or Becton Dickinson because, in addition to this genetic test, the company is also developing genetic tests for cancer, cystic fibrosis, herpes and heart disease.
As wonderful as modern medicine is today, the truth is that many people react in substantially different ways to different drugs. Genetic testing holds out the possibility of better serving people by allowing doctors to more accurately tailor dosage or, alternatively, informing them when certain drugs won’t work on them.
Either way, it is a win-win situation. If genetic test shows the patient will respond to the drug, both patient and provider can work on finding the optimum level of dosage. If the test is negative at least the patient is spared the time and energy of using an ineffective drug, and the health care provider can then set about looking for alternative methods of treating the patient.
The possibilities of genetic testing are so great that I simply don’t see Nanosphere reaching the IPO stage. I believe the company will be snapped up in short order and I would encourage health care professionals to follow the event because whoever lands Nanosphere is going to add some very good DNA to its genes.
Interested in related articles I have written on nanotechnology? I’d encourage you to check out these:
Nano’s Big Numbers
Nanotech Promises One Helluva a Ride
A TINY Cleantech Option
A Nanotech Approach to Cancer
Nanotech Casts a Tiny Net
I also extensively quoted in this recent article entitled, ”Nanotech: The Next American Revolution?” that appeared in Industry Week.
Jack Uldrich is a writer, public speaker and host of jumpthecurve.net. He is the author of seven books, including Jump the Curve and The Next Big Thing is Really Small: How Nanotechnology Will Change the Future of Your Business, and speaks frequently on future trends, innovation, change management, nanotechnology, robotics, RFID technology and executive leadership to the health care industry.
