MedGenome, a leading provider of genomics research services globally announced $20 million Series B investment from Sequoia Capital on June 22nd 2015.
MedGenome, a leading provider of genomics research services globally announced $20 million Series B investment from Sequoia Capital on June 22nd 2015. Sam Santhosh, CEO MedGenome, speaks to Shahid Akhter on the path that MedGenome is treading now and what lies ahead.
1. What prompted you to genomics and how has been the journey so far?
The completion of the first draft of the human genome by the International Human Genome Project in 2001 originally attracted me to this field. I was intrigued by the opportunity produced through understanding and leveraging the genomic source code which is the language of life for all living beings. I spent few years in reading and learning about the subject during which period, the DNA sequencing technology went through a revolution by exponentially reducing sequencing cost while increasing processing speed. For example, sequencing the first human genome took 10 years and cost about $3 billion, while now we are at a stage talking about a $1000 genome in two weeks.
With the advent of these new technologies called Next Generation Sequencing (NGS), I saw the opportunity of creating a company for genome sequencing and data analysis. Genomics can create dramatic changes in healthcare, agriculture, animal sciences, environmental protection, bio-fuel, and so on. Using the same technologies vertical solutions in these domains could be developed. So I created a services company called SciGenom and MedGenome was incubated as an entity for medical genetics. And we spun it off as a separate company in 2013. So far the growth has been encouraging.
We have a leading position in clinical genomics in India and has set the benchmark for clinical genomics in emerging markets. We have also pioneered genomics-based research in India through our network of collaborators to enhance our understanding of the diseases at the genetic and molecular level. These were possible because of our extreme focus on bringing the latest advancements in technology in the Indian market – be it the advanced NGS lab in Bangalore or the launch of the non-invasive prenatal test for the first time in a facility in India – and success in developing world class bioinformatics pipelines.
2. What was your initial vision for the company? Where do you think you are with the vision?
Initial vision was to create a company in India applying genomics to improve personalized medicine in India and reduce the burden of inherited diseases. Subsequently the vision got enhanced to provide genomic research solutions to pharma once we understood the potential of Indian population to provide better understanding of complex diseases. And this has been very exciting and rewarding experience.
We have the most advanced technologies in our lab, for example the latest Illumina HiSeq 4000 machine addition to our lab; the first in India. We have developed intellectual property through proprietary platforms such as OncoMD, our cancer mutation platform and OncoPept, our immunotherapy solutions supported by our unique bioinformatics pipelines and proprietary databases. We are also the leading clinical genomics company in the country. We have our presence in the US as well through our R&D lab in San Francisco and office in Boston. And the recent Series B funding will allow us to expand our offerings and reach further.
3. How do you find the concept of ‘genetic testing’ gaining currency in India today? How does this compare with global market?
We have seen good progress on the acceptance of genetic testing. It is a function of awareness and the affordability, both of which have been focus actions for MedGenome as the leader in the market.
What has been very encouraging is the consistency of the prescribers once they see the value of genetic testing in their practice. We work with thousands of doctors every month across hundreds of institutions and the collaborations have been very enlightening.
It is also important to not stop at delivering a report but also support the patient in learning about the specific nature of the genetic condition. Which is where counselling plays an important role.
Globally, genetic testing has gained considerable traction in clinical setting for diagnosis, prevention, treatment and management of a wide variety of diseases with an underlying genetic reason, in light of the recent advances and celebrity endorsements. It is a rapidly expanding segment of the molecular diagnostics market worldwide given the increasing awareness about the value that these tests bring to the healthcare providers.
4. How would you summarize the trends in the molecular diagnostics sector over the past five years?
Genomics has seen rapid advances in the technology of decoding the DNA, triggering a revolution in our ability to understand the genetic and molecular basis of health and disease.
Genomic biomarkers as companion diagnostics are helping the pharma majors to provide more targeted therapies. Oncology has taken a lead in this so far but applications in other disease areas have been looked into. Genomics to enable differential diagnosis in neurological disorders is a good example of this.
Translation of large scale sequencing data into information of clinical utility is gaining importance globally. In the US, many companies have leveraged this opportunity – Foundation medicine is offering comprehensive genomic profiling for tumors, Invitae provides genetic testing across multiple disease areas and Natera has grown on its proprietary non-invasive prenatal tests. Over a million tests in NIPT have been prescribed in the US so far. So an understanding of the need and the acceptance for genetic testing have been encouraging so far.
Predictive medicine, using advances in accurate technologies in medicine, genomics, proteomics, cell biology, imaging etc. and allowing us to predict how, when, and in whom a disease will develop has gained traction in the recent years. This could be a new revolution in human health care where genetic information contained in an individual’s genome is interpreted to predict future predisposition to diseases. Many companies have been built and are experiencing growth leveraging this trend, in the US especially.
Lot of work went into advancing the use of genomics in exploratory research and drug discovery in the recent years.
5. Your opinion about the genetic testing market and where does MedGenome stand?
Genetic testing has clinical applications for diagnostic, predictive, carrier, prenatal & pre-implantation testing, and newborn screening, also playing a vital role in pharmacogenetic testing. It offers distinct advantages because of its ability to facilitate early disease detection with simpler and cost effective treatment and stratification of patients into groups allowing selection of optimal therapy.
It is going to be the standard in the future. A genetic testing report will be an integral part of a physician’s decision making process. As far as MedGenome, it is a leader in the clinical genomics market. MedGenome offers more than 100 tests currently across Oncology, cardiology, ophthalmology, neurology and nephrology. We have pioneered the launch of advanced genetic tests in the country – such as the non-invasive prenatal test launched this year. We will be the only company conducting this test in a facility in India.
Outside India, we are focused on providing diagnostic and research solutions only. Our OncoMD, cancer analytics platform, provides valuable clinical parameters to enhance the value of a diagnostic report through an API integration. Our OncoPept, cancer immunotherapy solution, allows identification and prioritization of peptides towards vaccine development by pharma and biotech.
6. What hurdles you have faced since inception?
One of the first hurdles was on educating the prescribers and the patients on a larger scale about genetic test offerings and the impact it can have on patient’s life. We had few who were aware and were early adopters, but to scale and customize the offerings, we needed to generate awareness. Cost of infrastructure was also important. We focused on having the latest technologies in sequencing for India and that required investment. It has allowed us to provide high quality reports with faster turn-around times which is essential for the stakeholders. We also had to develop our IP on population specific variants in Indian patients. Such information allowed us to refine our genomic data interpretation more accurately giving us an edge in the Indian market.
7. What are the challenges you feel the genomics and biotech industries are facing today? Do we need regulations or code of conduct?
Rising R&D costs is a challenge that is experienced by the biotech companies globally. Regulatory barriers and reimbursement from insurance companies is also having a significant impact on the success of the industry. Genomics, as a discipline, is recently studied as a means to improve R&D efficiency by improved patient stratification for clinical trials, thereby reducing the time and cost required for the trial. Regulatory authorities are also encouraging this as the results from these trials are more targeted and in favour of the needy.
From genetic testing perspective as well, certain factors like regulatory body approval, and reimbursement from insurance companies are crucial. In the western world, insurers have started accepting genomic tests in their formulary as it is expected to reduce the cost of down-the-line treatment. Another challenge is on patient confidentiality and ownership of genomic data. Requirement is to have policies and committees to enforce a check on this as genetic testing grows in the clinical practice.
In India, these tests are yet to be offered at affordable prices. There is also a great need for clinicians who have a good understanding of genomics and its clinical significance. Genetics, as far as I understand, is not widely adopted as part of the medical college curriculum in India.
The patient journey must be well managed so that if a particular condition is identified, the experts are brought in to handle the situation and help the individual. There is a dearth of genetic counsellors who can explain genomics findings to the affected individuals and their families. In addition to this, lack of baseline genomics data of Indian origin and unclear policies on intellectual property rights also pose hindrances to the industry.
8. Where do you see MedGenome 10 years from today?
We want to be a global leader in genomics-based diagnostics and research. A company working on cutting-edge technologies and where core capabilities and Intellectual property are built.
We have an opportunity to look beyond generics in the Indian health care space and contribute towards drug discovery and exploratory research and gain a prominent role in the global healthcare industry.
9. Any advice you would like to give to budding entrepreneurs?
Science provides huge number of opportunities for budding entreprenuers. I would urge them to look beyond IT and Ecommerce and leverage the revolutionary advances in Genetics, Nanotechnology, Neuroscience and Robotics to develop products and solutions that can make a significant difference to humanity.