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Scenario: A 65-year-old man with a history of colon cancer shows signs of a growth on his lung. Spreading of the colon cancer is suspected, but it could actually be early lung cancer -- which would require a very different plan of attack.
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| "RedPath helps pathologists render a definitive diagnosis where it wouldn't otherwise exist," says CEO Mary Del Brady. "In the end, this results in improved patient care and lower health care cost." |
"Until now, cancer diagnosis has been based upon a highly educated, but subjective opinion," says Mary Del Brady, CEO of Pittsburgh-based RedPath Integrated Pathology. "A biopsy slide under a microscope can't always provide enough information. But with our innovative testing, we're able to make a clear call. We can replace a fuzzy diagnosis such as 'There are atypical cells ... It looks suspicious ... We'll need to wait and see...' with a definitive one that enables the best treatment plan for the patient."
Despite amazing advances in medical science, cancer diagnosis is not always obvious and not always clear. Now, RedPath, a BFTP portfolio company, through its specialized pathology lab service, is clarifying the picture and arming doctors with objective proof.
The Genomic Revolution
RedPath's technology is most useful in the hard-to-diagnose cases. It gets a "genetic fingerprint" of a tumor so it can render definitively whether it's cancer.
"We have changed the pathology review and analysis process from a one-dimensional one into a much more dynamic process with quantitative, objective results," she says. "Our topographic genotyping provides clarity of fact."
RedPath, whose progress has been aided by $300,000 in investments from BFTP, is one of the first commercial labs anywhere to integrate advances from the genomic revolution into everyday patient care. With certain cancers such as pancreatic cancer, 50 percent of time doctors can't make a definitive diagnosis without major surgery. Often the advice is to come back in three months, says Brady.
The Difference between Definitive and Best Guess
In the case where a mammogram comes back showing a suspicious marking, pathologists will examine a biopsy under a microscope. After such traditional protocol, if they are uncertain, they may send the sample off for a second opinion or do some special staining to help increase confidence in the diagnosis.
"We help pathologists render a definitive diagnosis in cases where it wouldn't otherwise exist," says Brady. "This enables them to help clinicians deliver the best treatment. It is the difference between a definitive decision and an educated best guess. In the end, this results in improved patient care and lower health-care cost."
| —Mary Del Brady, CEO, RedPath |
Word is Spreading
RedPath is only 18 months old but has already analyzed more than 600 patient samples from as far away as California and Texas. "We have customers from more than 40 hospitals across the U.S. right now and several marquee cancer centers," notes Brady.
With no special handling needs other than the standard protocol for shipping tissue samples, the market potential is endless. "We'll likely be receiving international samples soon," she says.
Keys to Growth
BFTP has made three $100,000 investments in RedPath to date, the first one coming back in the third quarter of 2004 and the most recent one coming in September 2005.
"These investments came at critical points in time for us," Brady says. "They've been a tremendous resource. We had specific milestones we needed to meet for each $100,000 and this has helped chart our path."
Brady believes the BFTP investment has helped shake a thin money tree. "One of our biggest hurdles is that as a startup based in western Pennsylvania, there isn't an over-abundance of capital," she says. "Having BFTP invest in us is like a 'Good Housekeeping Seal of Approval' from other investors' point of view."
The Other Hurdles
As exciting and proven as RedPath's capabilities are, physicians still have a certain way of doing things. "Despite validation and peer review, some physicians don't understand the molecular level and may not be as comfortable with our process," she says. "We're changing a culture, changing standards of care -- and that takes time."
Reimbursement is the other major issue for new technologies such as RedPath's. "Our biggest risk over the early years is securing agreements with payers," Brady says. "We have a reimbursement system that is not very flexible when it comes to new technology. But in the end, all good medicine starts with providing a definitive diagnosis, which is precisely what we do."
According to the Lewin Report (July 2005) prepared for the Advanced Medical Technology Association, while diagnostics comprise 5 percent of hospital costs and 1.6 percent of Medicare costs, their findings influence between 60-70 percent of all health-care decision-making. As such, the value of accurate and complete diagnosis is dramatic for both the best patient outcomes as well as the cost of health care. |
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Copyright © 2006 Ben Franklin Technology Partners |
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