Expands Potential Market for Clarient's Diagnostic Tests
ALISO VIEJO, Calif., June 10 /PRNewswire-FirstCall/ -- Clarient, Inc. (Nasdaq: CLRT), a premier technology and services resource for pathologists, oncologists and the pharmaceutical industry, today announced a new contractual agreement with Generation Health, Inc. (GH). This agreement makes Clarient a preferred genetic testing lab for GH, thereby ensuring reimbursement of diagnostic tests done for GH's nationwide network of payor clients and expanding Clarient's potential market. GH is a genetic benefit management company partially-owned by CVS Caremark, the nation's largest pharmacy healthcare provider.
GH and Clarient will begin partnering in July 2010 to facilitate the diagnostic testing for gene mutations in patients who suffer from certain oncology indications. In January 2011, plans are to expand the program, offering managed diagnostic testing to all GH clients.
Clarient Vice Chairman and Chief Executive Officer Ron Andrews said, "This agreement marks a significant new step for Clarient as we expand our presence into managed care markets. Companies like Generation Health have become a critical link in the selling, marketing and management of genetic testing services. Generation Health assists insurance companies by identifying patients who are likely to benefit from molecular tests. Our agreement assists Clarient by bringing many new pathologists, oncologists, hospitals and their patients' diagnostic needs to our advanced commercial cancer laboratory."
GH manages a systematic, comprehensive, and cost-effective process for administering genetic testing benefits and helping to integrate genetic information, where appropriate, into clinical practice.
"We chose Clarient as a Best Test™ laboratory within our network because of its expertise in oncology diagnostics, expansive service offering, leading edge technology and consultative approach," said GH Chief Executive Officer Rick Schatzberg. "We believe Clarient strengthens our ability to provide our clients with the best oncology genetic laboratory network available. Clarient's extensive experience in clinical trial studies and its support of our evidence-based, clinical approach will be key as we develop a framework for coverage based on clinical validity and utility for our clients."
About Clarient
Clarient combines innovative diagnostic technologies with world class pathology expertise to assess and characterize cancer. Clarient's mission is to become the leader in cancer diagnostics by dedicating itself to collaborative relationships with the healthcare community to translate cancer discovery and research into better patient care. Clarient's principal customers include pathologists, oncologists, hospitals, and biopharmaceutical companies. The rise of individualized medicine as the new direction in oncology has created the need for a centralized resource providing leading diagnostic technologies, such as flow cytometry and molecular testing. Clarient is that resource, having created a state-of-the-art commercial cancer laboratory providing the most advanced oncology testing and diagnostic services. Clarient's customers are connected to its Internet-based portal, PATHSITE®, that delivers high resolution images and critical interpretive reports based on our diagnostic testing. Clarient also develops and markets new, proprietary "companion" diagnostic markers for therapeutics in breast, prostate, lung, ovarian, and colon cancers, and leukemia/lymphoma. www.clarientinc.com
Forward Looking Statements
Certain statements herein regarding Clarient, Inc. contain forward-looking statements that involve risks and uncertainty. Future events and Clarient's actual results could differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to: Clarient's ability to continue to develop and expand its diagnostic services business, uncertainties inherent in Clarient's product development programs, Clarient's ability to attract and retain highly qualified managerial, technical, and sales and marketing personnel, Clarient's ability to maintain compliance with financial and other covenants under its credit facility, Clarient's ability to successfully manage its in-house billing and collections processes, the continuation of favorable third-party payor reimbursement for laboratory tests, changes in federal payor regulations or policies, including adjustments to Medicare reimbursement rates, that may affect coverage and reimbursement for Clarient's laboratory diagnostics services, Clarient's ability to obtain additional financing on acceptable terms or at all, unanticipated expenses or liabilities or other adverse events affecting cash flow, uncertainty of success in identifying, developing and commercializing new diagnostic tests or novel markers, Clarient's ability to fund development of new diagnostic tests and novel markers, and to obtain adequate patent protection covering Clarient's use of these tests and markers, and the amount of resources Clarient determines to apply to novel marker development and commercialization, the risk to Clarient of infringement claims and the possibility of the need to license intellectual property from third parties to avoid or settle such claims, failure to obtain regulatory approvals and clearances required to conduct clinical trials if/when required and/or to commercialize Clarient's services and underlying diagnostic applications, Clarient's ability to compete with other technologies and with emerging competitors in novel cancer diagnostics and dependence on third parties for collaboration in developing new tests, and risks detailed from time to time in Clarient's SEC reports, including quarterly reports on Form 10-Q, current reports on Form 8-K, and annual reports on Form 10-K. Recent experience with respect to laboratory services, net revenues and results of operations may not be indicative of future results for the reasons set forth above.
Clarient does not assume any obligation to update any forward-looking statements or other information contained in this document.
SOURCE Clarient, Inc.