GeneMatters

Part
01
of six
Part
01

GeneMatters

'An experience you can count on' stands out as GeneMatters value proposition. The company revenue is currently estimated to be approximately $7.2 million.

Overview

  • Founded in 2016, GeneMatters offers "independent, personalized genetic counseling sessions, delivered via telehealth and connected through an online platform."
  • The company collaborates with health networks, academic centers, hospitals, and genetic labs "to build or expand access to genetic counselors."

Value Proposition

  • GeneMatters's value proposition, an experience you can count on, the company assures clients of its extensive experience and deep medical knowledge to integrate its "service and technology with many types of workflows" to deliver a service that "works best for them and their patients."
  • The company also promises clients of low session cost, as well as "many extra support services," high responsiveness, scale without delays, and a collaborative approach to meet their needs.

Most Recent Revenues

  • The company revenue is currently estimated to be approximately $7.2 million.

Strengths

  • GeneMatters team has deep expertise in genetics—"from its founder and CEO, Jill Davies, a leader in the field of genetic counseling, to its experienced genetic counselors, management team and advisors."
  • The company is focused on delivering outstanding customer service, clinical rigor, and technology to simplify care; thereby, giving them a competitive edge over their competitors.
  • GeneMatters has adequate investment and resources from Invenshure, the parent company, that enables it to quickly scale and meet growing demands.

Weaknesses

  • The company cannot expand to other regions of the world due to the "coverage gaps in many parts," and is currently focused on the United States and Canada.
  • According to the founder and CEO of GeneMatters, Jill Davies, one of the drawbacks of their business model is that there is a small subset of patients; for example, the pediatric patients, "for whom telehealth counseling may not be the best delivery method."
Part
02
of six
Part
02

GeneMatters: Competitors

GeneMatter's competitors in the gene testing market include Integrated Genetics, Veritas Genetics, Invitae, and LabCorp. Details regarding these companies have been provided below.

Integrated Genetics

  • Integrated Genetics is a company headquartered in Westborough, Massachusetts. It offers hereditary cancer and genetic testing services. Moreover, it has a huge commercial network of genetic counselors
  • The company’s estimated revenue is $13.8 million.
  • Integrated Genetics’ counseling services helps patients to review their family history and understand the likelihood of a disease occurring. In addition, the company reviews basic genetic fundamentals, such as the impact of DNA, genes, and chromosomes on health.
  • Genetic counselors discuss inherited conditions and diseases with patients. Furthermore, they determine the most suitable genetic tests for patients and explain to them the benefits and limitations of each.
  • Genetic counselors, together with patients, review genetic testing results and offer support when difficult health care decisions need to be made.
  • The different types of counseling offered by Integrated Genetics include reproductive health genetic counseling and hereditary cancer genetic counseling.

Veritas Genetics

  • Veritas Genetics has its headquarters in Danvars. Massachusetts. The company offers genetic testing services and collaborates with physicians, patient advocates, and advisors to develop the best solutions.
  • The company’s revenue in 2017 was approximately $5 million.
  • Veritas Genetics provides telehealth genetics counseling services. In addition, the company offers expert pharmacogenomics, referral services, and global clinical support.
  • The organization offers myGenome information sessions through video, telephone, and email.
  • Veritas Genetics offers comprehensive post-test genetic counseling, which is inclusive of health and family assessment. Follow-up recommendations based on tests results are provided during these sessions.

Invitae

  • Invitae is a genetic information company that was founded in 2010. It has its headquarters in San Francisco, California. The company specializes in providing information on genetic counseling, tests, diagnostics, hereditary cancer, and miscarriage analysis.
  • Invitae had revenue of $147.7 million in 2018.
  • The company has board-certified genetic counselors that are available on call during business hours.
  • Genetic counseling is also offered to individuals who have undergone cancer, cardiology, or reproductive health tests at no charge.

LabCorp




Part
03
of six
Part
03

Genetic Counseling Market: TAM

The estimated TAM for genetic counselors in the U.S. in 2019 is 560 million. Details of this estimate are below.
  • Dobson DaVanzo and Associates projected the U.S. TAM for direct patient care certified genetic counselors to be 326,626,000 people in 2017.
  • This report also found that direct patient care certified genetic counselors represent 65% of the overall certified counselor market.
  • This means that the U.S. TAM for all certified genetic counselors in 2017 was expected to be 502,501,538 people in 2017.
  • Additionally, this report indicated that the demand for genetic counselors will increase by 72% over 10 years.
  • Therefore, the U.S. TAM for genetic counselors in 2027 would be 864,302,645 people.
  • At a consistent rate, the growth from 2017 to 2027 represents a CAGR of 5.57%.
  • Using this CAGR, the TAM for each year between 2017 and 2027 can be calculated as follows.
    • 2017: 502,501,538 people
    • 2018: 530,490,874 people
    • 2019: 560,039,216 people
    • 2020: 591,233,400 people
    • 2021: 624,165,100 people
    • 2022: 658,931,096 people
    • 2023: 695,633,558 people
    • 2024: 734,380,347 people
    • 2025: 775,285,332 people
    • 2026: 818,468,725 people
    • 2027: 864,302,645 people
  • Therefore, the estimated U.S. TAM for genetic counselors in 2019 is approximately 560 million.

Research Strategy

To find the TAM of the genetic counseling market, we began by searching for a direct answer from research reports such as those from Dobson DeVanzo and Associates, Business Insider, BusinessWire, MarketWatch, and more. We found an estimated U.S. population demand for a specific type of genetic counselor in a Dobson DeVanzo and Associates report, but it was for 2017 and did not represent the entire market. However, it did provide us with the statistic that that type of genetic counselor, the direct patient care certified genetic counselor, represented 65% of the entire market. It also gave us the expected market growth over 10 years. As such, we had the data points necessary to triangulate an answer, but we wanted to see if we could find a direct answer first.

We pivoted our strategy to searching industry publications such as the Journal of Genetic Counseling, The Scientist Magazine, and Genetic Alliance, among others. We were able to find the market size for genetic testing, but there was little information on the genetic counseling market except to say the demand for genetic counselors would grow in the near future. Our third strategy was to search for the number of genetic counselors in the U.S. and determine their annual salary to get a TAM. We were successful in finding this data using U.S. Department of Labor sources. However, when we multiplied the number of genetic counselors in the U.S. (4,000) by the median salary ($72,090), we landed at $288,360,000 for a market size. This did not seem large enough when compared with the demand provided by Dobson DeVanzo and Associates. Moreover, this does not represent the TAM, but only the SAM, so we did not think it was accurate.

As such, we returned to the Dobson DeVanzo and Associates report and triangulated the TAM in terms of potential customers of genetic counseling. This triangulation began with the expected demand for direct patient care certified genetic counselors in 2017, which was given as 326,626,000 people. Then, since the report stated that direct patient care certified genetic counselors represent 65% of the total market, we divided 326,626,000 by 0.65, giving us 502,501,538 people as the demand for all types of genetic counselors. The report also stated that the demand for genetic counselors would increase by 72% over 10 years. This allowed us to take a straight percentage and calculate what the demand would be in 2027: 502,501,538 x 1.72 = 864,302,645.36 (rounded to 864,302,645 people).

From here, we used a CAGR calculator to determine the average compound average growth rate for each year between 2017 and 2027, which was 5.57%. This number allowed us to calculate the approximate market size for each year between 2017 and 2027 and would provide us with the 2019 market size:
  • 2017: 502,501,538 people
  • 2018: 530,490,874 people (502,501,538 x 1.0557)
  • 2019: 560,039,216 people (530,490,874 x 1.0557)
  • 2020: 591,233,400 people (560,039,216 x 1.0557)
  • 2021: 624,165,100 people (591,233,400 x 1.0557)
  • 2022: 658,931,096 people (624,165,100 x 1.0557)
  • 2023: 695,633,558 people (658,931,096 x 1.0557)
  • 2024: 734,380,347 people (695,633,558 x 1.0557)
  • 2025: 775,285,332 people (734,380,347 x 1.0557)
  • 2026: 818,468,725 people (775,285,332 x 1.0557)
  • 2027: 864,302,645 people (502,501,538 x 1.72)
Note that some numbers are slightly off due to rounding.

Part
04
of six
Part
04

Types an Number of Genetic Tests

Genetic testing is a major element in the healthcare system in the United States. The US stands as a leader in this field with stakeholders in both the public and private sectors. Our research focuses on the total number of genetic tests performed in the US every year and a breakdown of the tests by type.

Number of Tests

  • There are approximately 75,000 genetic tests that exist in the market today; about ten new tests enter the market daily.
  • The North America region accounts for about 43.7% of that market, making about 33,000 of those tests. The US market alone accounts for over 91% of the North America revenue share. This brings the number of tests in the US to about 30,000.
  • As of March 2017, there were 69,104 Genetic Testing Units (GTUs) that were active and available in the US. This number has since increased to 74,448 GTUs in 2018.
  • NextGen Sequencing (NGS), accounts for about 48% of the tests in the market.

Breakdown by Type

  • Prenatal tests account for the highest spending on genetic testing followed by hereditary cancer tests.
  • Of the total tests that exist, 86% are single-gene tests and the rest are panel tests.
  • The panel tests included 9,311 multi-analyte assays, 85 noninvasive prenatal tests, 122 whole-exome sequencing tests, and 873 whole-genome analysis tests.
  • DNA testing market doubled in 2019 with over 25,000,000 DNA test kits sold.
  • Next-Gen Sequencing (NGS) technologies market is growing rapidly with a market coverage of about (54%) at $1.7 billion in 2017 and expected growth to $3.3 billion by 2022.
  • Noninvasive prenatal testing (NIPT) is the largest category and comprises carrier screening, in vitro fertilization, and newborn screening. These tests make up about 54% of the genetic tests. In the US alone, this percentage translates to about 16,000 tests.
  • The oncology NGS test market makes up the second-largest market at 27% of the total number of tests. In 2017, the market stood at $838.8 million with the expected growth to reach $4.1 billion by 2022. Taking the US into account, this percentage translates to about 8,000 tests.
  • Mendelian (rare) disorders tests make up 10% of the test about 3,000 tests in the US.
  • Metabolic immune and cardiovascular risk prediction diagnostics each covers 4% of the total tests, while neurological transplants and clinical microbiology diagnostics each cover 2% of the tests, which translates to 1200 and 600 tests, respectively.

Research Strategy

The team started the research by analyzing information from key stakeholders in the genetic testing field like the WHO and the US National Library of Medicine. We also did an extensive analysis of information from genetics magazines and medical journals. Information on the number of Genetic Testing Units (GTUs) was available. However, information on the number of tests performed in the US solely every year and the breakdown by type was not publicly available. However, information on the number of tests is classified as a combination of nations in North America comprising the United States, Canada, and Mexico. The team triangulated this information by gathering information on the percentage market coverage of North America in terms of the genetic tests and comparing it to the global market data analyzed.
It was evident that approximately 75,000 genetic tests that exist in the market today and that North America accounts for about 43.7% of the genetic testing market. Using this percentage, to calculate the North America market we found the number to be about 30,000. CALCULATION: (75,000 x 43.7/100 = about 33,000).

The team discovered that the US market, accounted for over 91% of the revenue share. We used this percentage to calculate the actual market share for the US alone, this gave us about 30,000 tests. CALCULATION: (33,000 x 91/100 = about 30,000).

We gave a breakdown by type of test from the percentage of each type of test as follows.
NIPT with a 54% coverage had 16,000 tests. CALCULATION: (30,000 x 54/100 = about 16,000).
The Oncology NGS test market with 27% coverage had 8,000 tests. CALCULATION: (30,000 x 27/100 = about 8,000).
Mendelian (rare) disorders had 3000 tests from its 10% coverage. CALCULATION: (30,000 x 10/100 = about 3,000).
Metabolic immune and cardiovascular risk prediction diagnostic each had 1,200 tests given their 4% coverage. CALCULATION: (30,000 x 4/100 = about 1,200).
Neurological transplants and clinical microbiology has a 2% coverage translating to 600 tests. CALCULATION: (30,000 x 2/100 = about 600).


Part
05
of six
Part
05

Number of Counselors in the US

According to Data USA, the U.S. had 805,075 counselors in 2017, and the majority of them were female who represented 73.3% of the industry. Most counselors in the U.S. were employed by elementary and secondary schools, with the figure totaling 172,260, and making up 21.4% of the market share. There was a 4.9% growth rate for counselors in the U.S. between 2016 and 2017. According to the American Board of Genetic Counseling, there are more than 5,000 certified genetic counselors in the U.S. In addition, the genetic counseling industry has seen a huge increase in the past 20 years, with the number of genetic counselors increasing from 1,155 in 1999, to 5,172 in 2019. Detailed information is below.

Total number of counselors in the US

  • According to Data USA, there were 805,075 counselors in the US in 2017, with 73.3% of these being female counselors.
  • Also, 70.6% of counselors in the US are White, 19.8% are Black, and 2.94% are Asian.

Supply and Demand of Counselors in the US

  • In the U.S., counselors are mostly employed in individual and family services, elementary & secondary schools, outpatient care centers, colleges, universities & professional schools, and in hospitals.
  • According to Data USA, the elementary and secondary schools industry employed the most counselors in the U.S., a total of 172,260. This represents 21.4% of the total share.
  • The outpatient care centers employed the second most counselors, a total of 130,341 counselors. This represents 16.2% of the total share.
  • The individual and family services industry employed the third most counselors, a total of 126,515 counselors. This represents 15.7% of the total share.
  • There was a 4.9% growth rate for counselors in the U.S. with the number increasing from 767,456 counselors in 2016 to 805,075 counselors in 2017. In addition, the counseling industry workforce is projected to grow at 17% between 2016 and 2026.
  • The supply of mental health counselors in the U.S. is forecast to grow by 13% between 2016 and 2030. There is also a big number of school counselors being produced in the U.S. and the supply is forecast to grow by 101% between 2016 and 2030.

Genetic Counseling in the US

  • According to the U.S. Bureau of Labor Statistics, 3,000 people were employed as genetic counselors in the U.S. in 2018, and the number is forecast to grow at a rate of 27% between 2018 and 2028.
  • The American Board of Genetic Counseling states there are "just over 5,000 ABGC certified genetic counselors" in the U.S.
  • According to the National Society of Genetic Counselors, the genetic counseling industry has grown significantly in the past 20 years from 1,155 genetic counselors in 1999 to 5,172 in 2019. This represents over 100% growth in the last ten years.
  • The industry is also projected to grow another 100% in the next ten years, with nearly 7,500 certified genetic counselors available in the next five years, and more than 10,000 in the next 10 years. The growth is driven by the expansion of current training and the creation of new ones.
  • With the increase in the number of Americans carrying out at-home genetic tests using self-administered testing kits from companies such as 23andMe, there is a shortage of genetic counselors to help interpret the data. According to The Atlantic, as demand for the services offered by genetic counselors in the U.S. grows, the industry is "facing a national shortage, with an estimated two to three jobs available for every graduate of genetic-counselor training programs."

Research Strategy

To identify the total number of counselors in the U.S. and find insights into their supply and demand in the United States, we leveraged information from industry databases, reports, and publications such as the National Society of Genetic Counselors, the U.S. Bureau of Labor Statistics, the American Board of Genetic Counseling, and Data USA. We found all the required information and included it in our findings.

Some statistics were graphically represented in bar charts and clicking on the charts provided the required statistics. For example, the 172,260 statistic for counselors employed by elementary and secondary schools, the 130,341 statistic for counselors employed by outpatient care centers, and the 126,515 statistic for counselors employed by individual and family services was available by clicking on the respective bars on the "PEOPLE IN WORKFORCE" bar chart. Also, the 2.94% demographic statistic for the number of Asian counselors in the U.S. was available by clicking on the respective bar on the "race and ethnicity" bar chart.
Part
06
of six
Part
06

Genetic Testing Market

The North American genetic testing market was worth $6.96 billion in 2018. Carrier testing and newborn screening hold the largest share of this market. They both have an aggregate share of 38%.

Genetic Testing Market: North America

  • The global market size for genetic testing was $11.8 billion in 2018 and is forecast to reach $25 billion in 2025 based on an 11.9% compound annual growth rate.
  • North America (the US and Canada) has a 59% share of this market. This means its market size is $6.96 billion (0.59*11.8 million).

North American Market by Type

  • By type, carrier testing has the largest share of the North American genetic testing market. Its share of the market is about 30%. As a result, it is worth $2.1 billion (0.30*$6.96 bn).
  • Newborn screening has a 23% share of the market. This means its market size is $1.6 billion.
  • Diagnostic testing has a 15% share of the market, making its market size $1.04 billion.
  • Prenatal testing has a 12% share of the market. Its market size is $835 million.
  • Predictive and presymtomatic testing has a 10% share of the market. Its market size is $696 billion.
  • Nutrigenomic testing has a 10% share of the market, making its market size $696 billion.

Research Strategy

In order to determine the genetic testing market size in the US by type, we first relied on industry reports by market research platforms such as Globenewswire and Allied Market Research. While these reports offered data on the global testing market, no data specific to the US was found in them. They simply mentioned that the US has a significant share of the market. They also mentioned the market share of North America in general.

Next, we turned to news articles published by industry-related websites like Science Mag. Although these websites offered statistics on the US genetic testing market- such as the number of genetic tests in the US, they mentioned nothing about what the US genetic testing market is worth; neither did they offer any breakdown of the market by type. We proceeded to review professional social media sites like LinkedIn. Sometimes, professionals on LinkedIn share market reports on this platform. This was a dead end as we only found shared reports on mergers and acquisitions in the US genetics testing market. Another approach we took was combing through data intelligence resources including Statista. We tried finding any chart on the countries with the most market share in the global genetics testing market (this was done under the assumption that the US might be one of these countries). Again, this was unfruitful. Statista only offered data on the number of people who did DNA tests in the US in 2018.
We attempted triangulating the requested data. The first step was to figure out if the US genetic testing industry was consolidated or fragmented. If it was consolidated, this would mean a few companies control the market and thus, we could find the revenues of these companies, add them up, and estimate the market size. On the other hand, a fragmented industry would mean no company has a large enough share in the market and the above triangulation would be impractical to do. Despite scouring news and market reports, there was no mention of whether the US genetics testing market is fragmented or consolidated. Nonetheless, we tried reviewing the annual reports of key players in the US genetics testing industry in order to add up the revenues of these companies. However, we soon found that large companies such as Abbott Laboratories only provide aggregate figures on their annual reports. Seeing as a lot of them had other businesses or segments and catered to other countries, adding up their total revenues would have led to an exaggerated market size. Some of these companies are also private. While third party portals like Hoovers had revenue figures, they were not segmented by region or country. Therefore, this was also a futile triangulation attempt.

As a result, we expanded our search to North America in general. Please note that market reports consider North America as the US and Canada alone. Our findings and calculations have been presented above.
Sources
Sources

From Part 05
Quotes
  • "70.6% of Counselors are White, making that the most common race or ethnicity in the occupation. Representing 19.8% of Counselors, Black is the second most common race or ethnicity in this occupation."
Quotes
  • "The median annual wage for genetic counselors was $80,370 in May 2018."
Quotes
  • "Since 1993, ABGC has defined the professional standards of competence for the genetic counseling profession. The number of genetic counselors recognized by ABGC has risen from 495 to more than 4,000, and the number of graduate programs has more than doubled."
Quotes
  • "That amount of data is quickly expanding. A year ago, the U.S. Food and Drug Administration gave the green light for 23andMe to start releasing results to customers about their genetic risks for 10 health conditions, including late-onset Alzheimer’s and Parkinson’s diseases."