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GE Healthcare and CardioDx Form Alliance
FAIRFIELD, Conn.—GE Healthcare and CardioDx, a cardiovascular genomic diagnostics company, have entered into a strategic alliance to advance and co-develop "high-value integrated diagnostics for cardiovascular disease." The deal is notable not just for the $5 million this puts into CardioDx's coffers, but because it also is the first investment made by GE's recently formed Healthymagination Fund.
The GE Healthymagination Fund is a new equity fund that makes investments in highly promising healthcare technology companies, and the $5 million investment in CardioDx is part of a Series D round that the fund is leading. Other financial terms were not disclosed.
The alliance between the two companies, according to their news release about that deal, "aligns with GE's healthymagination initiative which focuses on reducing cost, increasing access and improving quality in healthcare."
"GE Healthcare is a leader in diagnostic imaging. The alliance with CardioDx gives us access to new and exciting technologies in high-value diagnostics, which will complement and strengthen our existing offerings," says Pascale Witz, president and CEO of GE Healthcare's Medical Diagnostics business. "CardioDx is an excellent strategic fit with GE Healthcare, given our common focus on cardiovascular disease. We see enormous potential in integrated, high-value diagnostics. The combined talent of the two businesses offers the potential to accelerate the development of new technologies that will ultimately improve patient care."
CardioDx develops genomic tests to aid in the assessment and tailoring of care of individuals with cardiovascular diseases such as coronary artery disease (CAD), cardiac arrhythmias and heart failure. GE Healthcare is a world-class provider of advanced technologies for cardiovascular imaging and monitoring. The strategic fit between the two businesses, combined with expanded capabilities in product research and development, is expected to accelerate the development of technologies for the diagnosis and care of patients with suspected heart disease.
This alliance also reportedly reflects GE Healthcare's continuing interest in opportunities to combine in vivo and in vitro diagnostic technologies to improve patient care.
The strategic alliance with GE Healthcare and the funding from GE's Healthymagination Fund will allow us to benefit from the business and scientific expertise of a world-class healthcare company, which has a great heritage in diagnostic technology," says David Levison, CardioDx's president and CEO. "We have a shared vision of the future of healthcare—where innovation can help create greater healthcare efficiencies, reduce the need for unnecessary tests, and enable physicians to tailor care to the individual."
CardioDx's initial product, Corus CAD, is a clinically validated non-invasive genomic test that uses data such as gene expression levels and other patient characteristics to assess the likelihood that a patient has obstructive CAD, a narrowing or blockage of the coronary arteries that can lead to heart attack or death. Today, patients with suspected CAD are diagnosed through a combination of non-invasive and invasive procedures. Corus CAD uses a simple blood test to quantify the likelihood of CAD.
"We offer a unique proposition to promising healthcare technology companies like CardioDx," says Michael Jones, executive vice president of business development at GE Healthcare and director of GE's Healthymagination Fund. "As well as providing growth capital and investment expertise, we offer entrepreneurs the opportunity to work with GE Healthcare and GE's Global Research Center to accelerate the development of new technologies that align with our healthymagination initiative."
The Healthymagination Fund is part of GE's $6 billion Healthymagination Initiative, a global commitment to deliver better healthcare to more people at lower cost. The $250 million Healthymagination Fund targets three broad areas for investment:
Broad-based diagnostics, including imaging, home health, patient monitoring, molecular diagnostics, pathology, novel imaging agents and other technologies for disease diagnosis.
Healthcare information technology, including electronic medical records, clinical information systems, healthcare information exchanges and value-added data services.
Life sciences, including tools for research and development in biopharmaceuticals and stem cells, and technologies for manufacturing of biopharmaceuticals and vaccines.