Thanks to Daniel for posting my comments about Navi's gaffe
Even with Francis saying he is happy with DTC, with one major caveat, that they are doing it responsibly and some unbiased party has the chance to review and rate their tests....
You would figure those who can withstand the economic downturn have a chance of mild success. But I am not so sure about the ROI here......
Example Navi: Who didn't know this was coming? I sure as hell did when I sat with their marketing team and they asked why I wasn't ordering their test....
I told them that I had patients paying less for our services for the year than for their test....Prior to that I saw their marketing survey on Gerson Lehman Group....thank for the quick cash Navi! There was the first time I saw the"scaled down test for 500 dollars"
IMHO, it was a non starter....Now for 499 and a year's access to your data......it is STILL a nonstarter.
In a short amount of time the price of these tests will be Zero Dollars.....
Those who survive this little pricewar will realize that the distribution platform matters way more than any individual test....
Too bad the 30 or so VC firms we spoke with didn't want to believe this.....now, it looks as if Amway or MarketAmerica may be a better investment after all....
But in all seriousness, these companies have a choice over the next six months...
1. Go medical with PgX and get the hell regulated out of you (No, Schmidt cannot protect 23andMe)
2. Go Novelty, with ancestry, innate traits, etc.
3. dissolve the testing and turn into a platform...
The Sherpa Says: All that glitters in this DTC space has been and will continue to be fools gold for at least the forseeable future.....No matter how many cocktail parties you throw SoHo....
Example Navi: Who didn't know this was coming? I sure as hell did when I sat with their marketing team and they asked why I wasn't ordering their test....
I told them that I had patients paying less for our services for the year than for their test....Prior to that I saw their marketing survey on Gerson Lehman Group....thank for the quick cash Navi! There was the first time I saw the"scaled down test for 500 dollars"
IMHO, it was a non starter....Now for 499 and a year's access to your data......it is STILL a nonstarter.
In a short amount of time the price of these tests will be Zero Dollars.....
Those who survive this little pricewar will realize that the distribution platform matters way more than any individual test....
Too bad the 30 or so VC firms we spoke with didn't want to believe this.....now, it looks as if Amway or MarketAmerica may be a better investment after all....
But in all seriousness, these companies have a choice over the next six months...
1. Go medical with PgX and get the hell regulated out of you (No, Schmidt cannot protect 23andMe)
2. Go Novelty, with ancestry, innate traits, etc.
3. dissolve the testing and turn into a platform...
The Sherpa Says: All that glitters in this DTC space has been and will continue to be fools gold for at least the forseeable future.....No matter how many cocktail parties you throw SoHo....
7 comments:
Steve,
For the record, I didn't "block" your comment - there have been problems with the ScienceBlogs commenting system ever since we upgraded to Movable Type 4, and they're not specific to you (I got blocked myself last week). I've logged the issue with tech support.
If you ever have a problem with a comment, email me and I'll put it up for you as soon as I get it. I'll add a note on the comments submission page to make this clearer for other commenters too.
Daniel,
Sorry about venting......on my blog.....post call with little filter on board....
Thanks for clarifying.....this is further proof as to why roll up blog sites are bad....they don't care for you....
I wish you would have stayed Indie....
Oh well....that being said....what do you really think about Navi ;P
-Steve
Daniel and Steve,
I sense some professional "backlashing" between the two of you.
You both need to stop it. Daniel, Steve is a doctor has has a better understanding of the clinical implications of genetic tests. Steve, Daniel has a better understanding of genetics and evolution.
Time to stop trying to cross into the medical aspects of genetic testing, Daniel, until you have had the "right" training. I have read some of your posts about 23andMe and I can tell you lack the "right" understanding of clinical valid genetic tests.
@ Anonymous.....
Ok...Ok.....This is the creative tension between PhD and MD.....
I do really like Daniel and think he is actually very knowledgeable about clinical implications.....
But I am too.....
And yes, Daniel knows the basic science as well as I know the Clinical Science....
I will stop being a petty little boy......
Thanks for the wake up call,
-Steve
Francis Collins, Director of the National Human Genome Research Institute: "It is good that the public is having the chance to learn about their genomes if they think they want to know"
http://www.genomeweb.com/node/911012?emc=el&m=302058&l=1&v=6d5f474000
What do you say to that, Steve?
@ Aononymous
"companies are doing this in a responsible way. But, of course, there are some things on the web that are not responsible."
In addition, Collins endorsed the call by the Secretary's Advisory Committee on Genomics, Health and Society to create a public database of information that would give consumers "a place to go to seek objective information about the clinical validity and clinical utility of these tests.
"It's disturbing to see that there hasn't been much progress on that because it makes so much sense," he said, adding that without "some objective way to evaluate" these gene tests there will be "some other entities on the scene that are a little less responsible."
Like I said.....DTC will either go Novelty or Medical.....in the case of novelty......not much I have to say about regulation......
But if they do D-met chips......it sure as hell is medical....
-Steve
@ Anonymous,
Context wise, Francis only mentioned DTC in passing....The rest revolved around his idea for the million man study and that Pgx was getting complicated....
-Steve
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