Rockville (MD), October 2, 2017 — According to IVD market research firm Kalorama Information, companies with laboratory-developed tests (LTDs), tests performed by laboratories owned by IVD companies and others, are attracting investor interest, with over $2 billion raised between January and August 2017. LDTs are used for complex testing that smaller laboratories are not equipped or do not choose to handle and are sued for a variety of medical conditions. Tests are of all types, including histology and molecular testing to immunoassays; or equipment-intensive testing such as mass spectrometry or flow cytometry. The largest segments of this market in are oncology, genetic (inherited) disorders, and infectious disease, but laboratory developed tests can be developed and used for virtually all disorders. The finding was made in Kalorama Information’s report, The Worldwide Market for Laboratory-Developed Tests.
“Assays are being developed that may have the potential to transform certain aspects of healthcare,” said Bruce Carlson, Publisher of Kalorama Information.
Laboratory developed tests (LDTs) have been attracting a lot of attention in recent years, but they are not a new or recent phenomenon. Historically, these tests were called “home-brew tests” or “in-house tests.” Also historically, these tests were low-volume, simple and well characterized tests for low-risk diagnostic applications. Today, high-risk, complex tests have been developed as LDTs, and are being used to provide clinical results to physicians and their patients.
Much of the focus and attention in recent years has been on the emergence and growing use of complex LDTs based on technologies such as polymerase chain reaction (PCR), microarrays, next generation sequencing, or other complex technology. To generate test results that were not previously possible, LDTs are being developed and used in many different applications.
This significant activity in the development of new LDTs, growing revenues from current LDTs, and large addressable markets for many of the emerging LDTs has attracted the interest of investors and also other companies looking for acquisitions. For example, in 2016, companies included in this report raised over $750 million. But this total is dwarfed by the over $2 billion raised between January and August 2017. The total for 2017 includes the approximately $900 million raised by GRAIL this year. However, other companies have already raised approximately $1 billion this year, which already surpasses the total investments for 2016.
Recent investments include:
Detailed lists of investments, partnerships and M&A related to the lab-developed test industry is available in Kalorama Information’s report.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama’s website and are also available on www.marketresearch.com and www.profound.com.
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