This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ASCO '14: Foundation Medicine Builds Case for Insurance Coverage

CHICAGO ( TheStreet) -- Foundation Medicine (FMI - Get Report) released the results of its decision analytics study earlier Saturday morning at the American Society of Clinical Oncology (ASCO) annual meeting, demonstrating 27.3% of doctors altered their prescriptions based on a FoundationOne diagnostic test. The study examined 132 patients with refractory, advance metastatic disease, where over half of the patients had tumors in the lung, breast, or colon. In addition, the effects were not isolated to one tumor type in that each of those three major groups saw the rate of switching over 20%.

Why does this matter?

As I noted last week, one of the keys challenges for Foundation Medicine going forward is gaining insurance reimbursement for the its cancer diagnostic test. Insurance companies will pay for Foundation's test if they determine there is clinical utility. An insurance company is simply not going pay for a diagnostic that does not either improve patient outcomes, physician decision making, or both.

Unlike a clinal trial that can have a relatively clear hurdle, there is not a predefined set of study outcomes that will convince payers to pay for a FoundationOne test. The company needs to compile results over time showing its diagnostic tests can positively affect the course of cancer treatments. Saturday's results were a good first step, but more studies will be needed.

Foundation Medicine also released new findings for pediatric cancers and adolescent/young adult patients on Monday.

Sobek is long Foundation Medicine.

David Sobek has been writing on biotech for a number of years through various outlets with a general focus on small cap oncology and antibiotics companies. He received his PhD in political science from Pennsylvnia State Univeristy in 2003 and a BA in international relations from The College of William and Mary in 1997.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FMI $23.70 0.21%
AAPL $110.37 -1.75%
FB $88.15 -1.94%
GOOG $606.25 -1.32%
TSLA $245.57 -0.86%

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs