Laboratory network operator P4 Diagnostix has paid an undisclosed amount for the assets of Strand Diagnostics, a US-based DNA testing services provider backed by diversified technology development group NantWorks.
Formed in 2012 through the merger of Strand Analytical Laboratories and Diagnostic ID, Strand Diagnostics has created a technology system that relies on barcoding to verify the quality of biopsy samples and ensure they are allocated to the correct patient.
The tests are offered in variants for breast and advanced prostate cancer biopsies marketed under the brands Know How and UroSeq respectively.
Problems for Strand arose in 2015 when the US government’s medical insurance scheme, Medicare, refused Know How payments, arguing the productivity it offered was already provided by existing human professionals, according to the Indianapolis Business Journal (IBJ).
P4 Diagnostix intends to immediately offer UroSeq as part of its molecular testing range and hopes to resume services through Know Error in the near future.
Nantworks committed $30m of series A funding to Strand over a three-year period in 2012. However, IBJ reported that only $7.5m was invested before contributions were shelved following the Medicare issues.