Latest Love Letter to Elias/DGX Oncology Progress
May 1, 2024 13:39:05 GMT
icemandios, jarhead, and 1 more like this
Post by luxetvox on May 1, 2024 13:39:05 GMT
Elias,
I hope you are well. For several reasons, shareholders have assumed that the Oncology business is the next portion of BioReference to be sold. First, since a deal has been made for Women’s Health, Oncology seems the next logical piece. Second, since laboratory testing is not viewed as a favorable combination with a pharma business by investors, and dilutes the valuation multiple, investors are anxious for a corporate action that speaks to this more strategic objective, namely a company with a focused mission in drug development.
It is our expectation that you will speak to these issues during the discussion of Q1 results, which I assume will occur before the end of next week. As an aside, with the second largest shareholder positions, both you and Dr. Nabel would benefit from a timeline wherein quarterly reports are made in a more timely fashion than has been the case hereto. To the point above, while we know that you cannot specifically address possible asset sales that may be under negotiation but, given the rapid changes taking place in the testing sector, such as those discussed in the article below, even a short general discussion of how BRLI’s Oncology division is positioned in the current competitive landscape would be of great help. As you know from our discussions, Bill and I have been advocating for more transparency from Opko management. The current stock price reflects, at least in part, the lack thereof.
When I read the following news release this morning, I wondered whether our Oncology business would now even be a fit with Quest. After more than ten years as a company owner, I know very little about the Oncology slice of BRLI. Revenues, growth, profitability, objectives….all of these are a mystery; management under Dr. Frost has simply not given investors more than bare bones information. That is unfortunate. In contrast, Quest is clearly making important strides in that sector, quite evident from years of inter-earnings report press releases. Today’s new information begs the question whether the efforts of DGX in AI are impacting the potential value and/or marketability of Opko’s Oncology asset. More generally, I’ve been curious for some time about the use of AI in drug development, and whether the ModeX team is employing any tools in that regard. I hope you will address these topics in the upcoming call.
So, more info is better than less. And, more info released sooner is even more desirable. Below is the article describing Quest’s latest oncology efforts.
Best regards,
Anthony
610-952-2356
Quest Diagnostics to Acquire PathAI Diagnostics to Accelerate AI and Digital
Pathology Adoption in Cancer Diagnosis; Forms Licensing Agreements with PathAI
Transaction is part of wide-ranging collaboration to combine Quest's oncology
expertise and scale with PathAI's AI and digital pathology innovations to
speed diagnosis, improve quality and reduce costs
SECAUCUS, N.J. and BOSTON, May 1, 2024 /PRNewswire/ -- Quest Diagnostics
(NYSE: DGX), a leader in diagnostic information services, and PathAI, a global
provider of artificial intelligence-powered technology for pathology, today
announced a multi-faceted collaboration designed to accelerate the adoption of
digital and AI pathology innovations to improve quality, speed and efficiency
in diagnosing cancer and other diseases.
Under the terms of a definitive agreement, Quest will acquire select assets of
PathAI Diagnostics, the business of PathAI that provides anatomic and digital
pathology laboratory services. At closing, PathAI Diagnostics'
state-of-the-art digitized laboratory in Memphis, Tennessee will become
Quest's AI and digital R&D and solutions center, supporting Quest's specialty
pathology businesses, AmeriPath and Dermpath Diagnostics. PathAI will continue
to support its biopharmaceutical clients with end-to-end clinical trial
services capabilities at its biopharma lab, which is separate and distinct
from the diagnostic laboratory business. The transaction is expected to be
completed in the second quarter of 2024.
Under separate agreements, Quest will license PathAI's AISight™ digital
pathology image management system to support its pathology laboratories and
customer sites in the United States. The two entities may also pursue
opportunities for Quest to aid PathAI's algorithm product development, drawing
on Quest's deep pathology leadership. In addition, Quest will be a preferred
provider for PathAI's biopharmaceutical clinical laboratory services.
"This transaction will enable Quest to dramatically ramp our capabilities in
AI and digital pathology, building on our leadership in oncology and
subspecialized pathology services," said Kristie Dolan, Senior Vice President,
Oncology, Quest Diagnostics. "AI and digital technologies have tremendous
potential to improve cancer care, and Quest has the know-how to scale and
deliver innovations that are high quality, efficient and broadly accessible.
PathAI has industry-leading expertise in AI pathology innovation, and their
state-of-the-art digitized laboratory in Memphis provides a platform for
future growth."
"At Quest Diagnostics, we are committed to maximizing patient impact from
every precious sample," said Mark Gardner, Senior Vice President, Molecular
Genomics and Oncology, Quest Diagnostics. "The relationship with PathAI and
acquisition of PathAI Diagnostics will enable us to rapidly accelerate the
adoption of digitization and artificial intelligence for our market leading
pathology offering, and will therefore strengthen our capability to serve
patients across the entire continuum of oncology care, from diagnosis, to
prognosis, to therapy selection and patient monitoring."
"This strategic relationship represents a significant milestone for the
anatomic pathology industry and marks a major turning point for digital
pathology adoption in the U.S. The adoption of these technologies by an
organization with the scale and breadth of capabilities of Quest is a clear
demonstration of how PathAI's cutting-edge solutions can help address the
market's need for more efficient and high-quality pathology operations," said
Andy Beck, MD PhD, co-Founder and CEO of PathAI. "The PathAI Diagnostics
laboratory in Memphis will allow Quest to accelerate its digital journey with
an already digitized laboratory."
According to the American Cancer Society, 2024 will be the first year that the
United States expects more than 2 million new cases of cancer. The global
cancer burden is expected to reach 28.4 million cases in 2040, compared to
19.3 million in 2020, according to the International Agency for Research on
Cancer.
The next phase in cancer innovation unlocked by digital pathology
Cancer and other diseases are often diagnosed by a pathologist based on a
visual review of a biopsied tissue mounted on a glass slide, and reviewed
under a microscope for abnormalities. If multiple pathologists need to view
the slide, such as for a second opinion, the tissue biopsy must be physically
couriered to another pathologist.
Digital pathology enables the creation of digital images of glass slides that
can be securely shared electronically with other pathologists to view,
reducing transportation needs and speeding testing and results reporting. It
also has the advantage of extending access to expert consults to geographic
areas where pathologists are in short supply, such as in parts of rural
America and internationally. It may also help alleviate workforce pressures
due to a shortage of pathologists and histotechnologists, the skilled
laboratory professionals who prepare tissue slides.
"Digital pathology will strengthen our ability to offer flexible solutions
that fulfill the needs of today's hospital laboratories. For instance, many
hospital labs are facing a shortage of histotechs. With digital pathology,
these labs can refer slide preparation to us while continuing to perform
professional interpretation in-house," Ms. Dolan added. "Digital pathology
will also allow us to extend the interpretative expertise of our roughly 400
pathologists to hospitals and other labs who lack these skilled professionals
on-staff, regardless of location."
AI builds upon digital pathology by identifying patterns in a digitized image
that suggest cancer or other diseases, helping a pathologist concentrate on
areas of concern for potentially more accurate diagnosis.
Quest has a long history of strategic AI and automation deployment. The
company has implemented AI, digital and automation technologies across several
laboratory and business functions, from microbiology and cytogenetics to
specimen processing and customer service, improving quality, efficiency and
customer and employee experiences.
The transaction also builds on Quest's deep expertise and scale in cancer,
with approximately 400 pathologists serving top health systems in the U.S. In
recent years, Quest has piloted digital and AI pathology oncology solutions at
Quest and AmeriPath sites in Clifton, NJ, Tampa and Denver.
Over time, Quest expects the transaction with PathAI will enable it to deploy
flexible digital slide preparation and diagnostic and second opinion
consultation services to health systems and other providers, both in the
United States and, through its Global Diagnostic Network, overseas. The
acquisition will also extend Quest's anatomic pathology services into
comparatively more profitable areas, including dermatopathology as well as
gastrointestinal and urological diseases. Provider customers of PathAI
Diagnostics will benefit from access to Quest's industry-leading clinical test
menu, broad health plan relationships and approximately 2,000 patient service
centers in the U.S.
I hope you are well. For several reasons, shareholders have assumed that the Oncology business is the next portion of BioReference to be sold. First, since a deal has been made for Women’s Health, Oncology seems the next logical piece. Second, since laboratory testing is not viewed as a favorable combination with a pharma business by investors, and dilutes the valuation multiple, investors are anxious for a corporate action that speaks to this more strategic objective, namely a company with a focused mission in drug development.
It is our expectation that you will speak to these issues during the discussion of Q1 results, which I assume will occur before the end of next week. As an aside, with the second largest shareholder positions, both you and Dr. Nabel would benefit from a timeline wherein quarterly reports are made in a more timely fashion than has been the case hereto. To the point above, while we know that you cannot specifically address possible asset sales that may be under negotiation but, given the rapid changes taking place in the testing sector, such as those discussed in the article below, even a short general discussion of how BRLI’s Oncology division is positioned in the current competitive landscape would be of great help. As you know from our discussions, Bill and I have been advocating for more transparency from Opko management. The current stock price reflects, at least in part, the lack thereof.
When I read the following news release this morning, I wondered whether our Oncology business would now even be a fit with Quest. After more than ten years as a company owner, I know very little about the Oncology slice of BRLI. Revenues, growth, profitability, objectives….all of these are a mystery; management under Dr. Frost has simply not given investors more than bare bones information. That is unfortunate. In contrast, Quest is clearly making important strides in that sector, quite evident from years of inter-earnings report press releases. Today’s new information begs the question whether the efforts of DGX in AI are impacting the potential value and/or marketability of Opko’s Oncology asset. More generally, I’ve been curious for some time about the use of AI in drug development, and whether the ModeX team is employing any tools in that regard. I hope you will address these topics in the upcoming call.
So, more info is better than less. And, more info released sooner is even more desirable. Below is the article describing Quest’s latest oncology efforts.
Best regards,
Anthony
610-952-2356
Quest Diagnostics to Acquire PathAI Diagnostics to Accelerate AI and Digital
Pathology Adoption in Cancer Diagnosis; Forms Licensing Agreements with PathAI
Transaction is part of wide-ranging collaboration to combine Quest's oncology
expertise and scale with PathAI's AI and digital pathology innovations to
speed diagnosis, improve quality and reduce costs
SECAUCUS, N.J. and BOSTON, May 1, 2024 /PRNewswire/ -- Quest Diagnostics
(NYSE: DGX), a leader in diagnostic information services, and PathAI, a global
provider of artificial intelligence-powered technology for pathology, today
announced a multi-faceted collaboration designed to accelerate the adoption of
digital and AI pathology innovations to improve quality, speed and efficiency
in diagnosing cancer and other diseases.
Under the terms of a definitive agreement, Quest will acquire select assets of
PathAI Diagnostics, the business of PathAI that provides anatomic and digital
pathology laboratory services. At closing, PathAI Diagnostics'
state-of-the-art digitized laboratory in Memphis, Tennessee will become
Quest's AI and digital R&D and solutions center, supporting Quest's specialty
pathology businesses, AmeriPath and Dermpath Diagnostics. PathAI will continue
to support its biopharmaceutical clients with end-to-end clinical trial
services capabilities at its biopharma lab, which is separate and distinct
from the diagnostic laboratory business. The transaction is expected to be
completed in the second quarter of 2024.
Under separate agreements, Quest will license PathAI's AISight™ digital
pathology image management system to support its pathology laboratories and
customer sites in the United States. The two entities may also pursue
opportunities for Quest to aid PathAI's algorithm product development, drawing
on Quest's deep pathology leadership. In addition, Quest will be a preferred
provider for PathAI's biopharmaceutical clinical laboratory services.
"This transaction will enable Quest to dramatically ramp our capabilities in
AI and digital pathology, building on our leadership in oncology and
subspecialized pathology services," said Kristie Dolan, Senior Vice President,
Oncology, Quest Diagnostics. "AI and digital technologies have tremendous
potential to improve cancer care, and Quest has the know-how to scale and
deliver innovations that are high quality, efficient and broadly accessible.
PathAI has industry-leading expertise in AI pathology innovation, and their
state-of-the-art digitized laboratory in Memphis provides a platform for
future growth."
"At Quest Diagnostics, we are committed to maximizing patient impact from
every precious sample," said Mark Gardner, Senior Vice President, Molecular
Genomics and Oncology, Quest Diagnostics. "The relationship with PathAI and
acquisition of PathAI Diagnostics will enable us to rapidly accelerate the
adoption of digitization and artificial intelligence for our market leading
pathology offering, and will therefore strengthen our capability to serve
patients across the entire continuum of oncology care, from diagnosis, to
prognosis, to therapy selection and patient monitoring."
"This strategic relationship represents a significant milestone for the
anatomic pathology industry and marks a major turning point for digital
pathology adoption in the U.S. The adoption of these technologies by an
organization with the scale and breadth of capabilities of Quest is a clear
demonstration of how PathAI's cutting-edge solutions can help address the
market's need for more efficient and high-quality pathology operations," said
Andy Beck, MD PhD, co-Founder and CEO of PathAI. "The PathAI Diagnostics
laboratory in Memphis will allow Quest to accelerate its digital journey with
an already digitized laboratory."
According to the American Cancer Society, 2024 will be the first year that the
United States expects more than 2 million new cases of cancer. The global
cancer burden is expected to reach 28.4 million cases in 2040, compared to
19.3 million in 2020, according to the International Agency for Research on
Cancer.
The next phase in cancer innovation unlocked by digital pathology
Cancer and other diseases are often diagnosed by a pathologist based on a
visual review of a biopsied tissue mounted on a glass slide, and reviewed
under a microscope for abnormalities. If multiple pathologists need to view
the slide, such as for a second opinion, the tissue biopsy must be physically
couriered to another pathologist.
Digital pathology enables the creation of digital images of glass slides that
can be securely shared electronically with other pathologists to view,
reducing transportation needs and speeding testing and results reporting. It
also has the advantage of extending access to expert consults to geographic
areas where pathologists are in short supply, such as in parts of rural
America and internationally. It may also help alleviate workforce pressures
due to a shortage of pathologists and histotechnologists, the skilled
laboratory professionals who prepare tissue slides.
"Digital pathology will strengthen our ability to offer flexible solutions
that fulfill the needs of today's hospital laboratories. For instance, many
hospital labs are facing a shortage of histotechs. With digital pathology,
these labs can refer slide preparation to us while continuing to perform
professional interpretation in-house," Ms. Dolan added. "Digital pathology
will also allow us to extend the interpretative expertise of our roughly 400
pathologists to hospitals and other labs who lack these skilled professionals
on-staff, regardless of location."
AI builds upon digital pathology by identifying patterns in a digitized image
that suggest cancer or other diseases, helping a pathologist concentrate on
areas of concern for potentially more accurate diagnosis.
Quest has a long history of strategic AI and automation deployment. The
company has implemented AI, digital and automation technologies across several
laboratory and business functions, from microbiology and cytogenetics to
specimen processing and customer service, improving quality, efficiency and
customer and employee experiences.
The transaction also builds on Quest's deep expertise and scale in cancer,
with approximately 400 pathologists serving top health systems in the U.S. In
recent years, Quest has piloted digital and AI pathology oncology solutions at
Quest and AmeriPath sites in Clifton, NJ, Tampa and Denver.
Over time, Quest expects the transaction with PathAI will enable it to deploy
flexible digital slide preparation and diagnostic and second opinion
consultation services to health systems and other providers, both in the
United States and, through its Global Diagnostic Network, overseas. The
acquisition will also extend Quest's anatomic pathology services into
comparatively more profitable areas, including dermatopathology as well as
gastrointestinal and urological diseases. Provider customers of PathAI
Diagnostics will benefit from access to Quest's industry-leading clinical test
menu, broad health plan relationships and approximately 2,000 patient service
centers in the U.S.
