10x Genomics is making a significant shift from its traditional focus on research tools to clinical diagnostics, announcing three strategic collaborations with respected institutions. These partnerships with Brigham & Women’s Hospital and Dana-Farber Cancer Institute in Boston, along with the New York-based Cancer Research Institute, aim to leverage the company’s advancements in single-cell and spatial biology technologies for clinical applications.
As part of this expansion, 10x plans to establish its own Clinical Laboratory Improvement Amendments (CLIA)-certified laboratory within the next year. This facility will facilitate the clinical deployment of diagnostic tools developed through these collaborative efforts.
The move into the clinical space represents not only a diversification of 10x’s customer base but also a potential avenue for increased revenue. Currently, 10x Genomics stands as the second largest publicly traded spatial biology company, according to GEN rankings. The company is recognized as a leader in developing instruments, reagents, and software in the field.
During an interview at the recent J.P. Morgan 44th Annual Healthcare Conference in San Francisco, Serge Saxonov, PhD, co-founder and CEO of 10x, emphasized the importance of this strategic shift. “Over the course of the past year, we have had physicians telling us that if we offered single-cell and spatial capabilities in a CLIA lab for patient testing, it would be transformative,” Saxonov stated. He articulated that the company’s ultimate objective is to enhance human health through innovative diagnostics.
Illumina, a longstanding leader in next-generation sequencing (NGS), has also been expanding its focus from research to clinical diagnostics. Just last week, Illumina received reimbursement approval from the Centers for Medicare and Medicaid Services (CMS) for its FDA-approved in vitro diagnostic (IVD) TruSight Oncology Comprehensive test. This is part of a broader strategy to enhance their clinical oncology portfolio, which includes new partnerships aimed at identifying genetic variations in cancer patients.
Both 10x and Illumina have downplayed potential competition in the clinical market, instead highlighting their overlapping interests in spatial and single-cell biology. Saxonov recently remarked that he views Illumina’s expansion into omics as a validation of the market potential that 10x has helped to create.
10x’s collaborations include significant initiatives with the Dana-Farber Cancer Institute, where the company plans to analyze tumor samples from hundreds of patients. This research aims to identify biomarkers linked to treatment responses, which will be vital for new therapies in oncology. Investigators will utilize 10x’s Chromium Flex single-cell assay and Xenium spatial biology platform to create detailed molecular maps that integrate cellular composition with spatial architecture.
Similarly, the partnership with Brigham & Women’s Hospital will focus on autoimmune diseases, analyzing peripheral blood samples from patients with conditions such as rheumatoid arthritis, systemic lupus erythematosus, and giant cell arteritis. This study aims to uncover immune signatures that correlate with disease activity, potentially leading to more effective therapeutic strategies.
The collaboration with the Cancer Research Institute (CRI) is aimed at developing an AI-driven immuno-oncology initiative. This project intends to create one of the world’s most extensive translational immuno-oncology datasets, encompassing over 20,000 samples. The goal is to enhance understanding of how the immune system responds to cancer, ultimately informing treatment and prevention strategies.
10x’s recent expansion into clinical diagnostics comes after a challenging year in which the company faced a decline in its traditional academic and government sectors due to federal funding cuts. In May 2023, 10x laid off approximately 100 employees, or 8% of its workforce, as part of a strategy to cut costs and adjust to shifting market demands.
Despite these challenges, 10x reported positive preliminary results for the fourth quarter of 2023, revealing an 11% increase in revenue compared to the previous quarter, totaling approximately $166 million. Consumables revenue showed growth, with single-cell consumables rising by 9% sequentially. This increase suggests a potential recovery and renewed investor confidence, as evidenced by a 36% increase in 10x’s stock over the past month.
Saxonov expressed pride in the resilience of the 10x team throughout a tumultuous financial environment. He noted, “2023 had major upheavals in our end markets, and it was really challenging in ways that no one could have anticipated. I’m proud of how the team performed and executed through it.”
As 10x Genomics moves ahead with its clinical ambitions, the company aims to redefine how diagnostics are developed and utilized, focusing on the pressing needs of healthcare professionals and patients alike. The collaborations with leading institutions position 10x at the forefront of a rapidly evolving field, promising to enhance diagnostic capabilities that could ultimately lead to better patient outcomes.
