What You Should Know:
– GeneDx, a company focused on improving health outcomes through genomic insights, has announced its plans to acquire Fabric Genomics, a pioneer in AI-powered genomic interpretation.
– The acquisition aims to position GeneDx at the forefront of the next phase of genomic medicine, characterized by decentralized testing with centralized intelligence. Following the closing of the acquisition, Fabric Genomics will initially operate independently while benefiting from GeneDx’s commercial support to accelerate its expansion.
AI-Powered Genomic Interpretation
The acquisition is motivated by the increasing accessibility of DNA sequencing, which allows for the decoupling of interpretation services from physical laboratories. This decoupling is expected to provide greater flexibility in integrating genomic information into the workflows of healthcare providers and health systems, both in the U.S. and globally. Fabric Genomics’ platform is known for its ability to scale complex interpretation services and has been used to interpret challenging genetic disease cases for various large health systems, academic centers, and research partners.
Through this acquisition, health systems will gain the option to use GeneDx’s centralized lab or conduct sequencing at their own facilities while leveraging GeneDx’s data and Fabric Genomics’ AI-powered interpretation platform. The companies believe that this model will lead to faster and earlier diagnoses of genetic diseases, improved patient outcomes, and reduced costs for healthcare systems.
Expanding Market Reach
The acquisition will also enable GeneDx to expand its market reach into several key areas:
- NICU Genomic Testing: The companies aim to increase the use of rapid whole genome sequencing in NICUs, where it has the potential to reduce diagnostic time and costs and improve outcomes for infants.
- Genomic Newborn Screening (gNBS): By combining GeneDx’s experience in newborn sequencing with Fabric Genomics’ scalable platform, the combined company intends to support state and federal gNBS programs.
- Global Commercial Expansion: Fabric Genomics’ cloud-native platform will enable GeneDx to offer centralized AI interpretation while adhering to local regulations, facilitating expansion into regions like EMEA, APAC, Canada, LATAM, and emerging markets.
“This marks an exciting new chapter for Fabric Genomics. By joining forces with GeneDx, we’re combining two of the most powerful engines in genomic medicine, our AI-driven interpretation platform and GeneDx’s unparalleled rare disease data set,” said Martin Reese, PhD, Co-Founder, President, and CEO, Fabric Genomics. “Together, we’ll make genome interpretation faster, more scalable, and more impactful, enabling clinicians to deliver precise answers and care to patients worldwide. This combination accelerates our founding mission to end the diagnostic odyssey and bring the full promise of genomic medicine into everyday healthcare and expedite the delivery of life-changing treatments.”
Financial Details
The terms of the agreement state that GeneDx will pay up to $33M in cash upon closing, with potential additional payments up to $51 million contingent on achieving specific milestones. The acquisition has been approved by GeneDx’s Board of Directors and is expected to close in the second quarter of 2025, pending customary closing conditions.
