News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel
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Two Big Anatomic Pathology Groups Will Merge in Washington State

Goal is to maintain community pathology services while expanding subspecialty pathology expertise to offer more laboratory testing services to physicians

Two of Washington State’s largest anatomic pathology  groups announced their intention to merge earlier this week. When completed, the combined pathology supergroup will number 36 board-certified pathologists and will have large histology laboratories in both the western and eastern regions of Washington.

The merger will bring together the pathologists of InCyte Pathology of Spokane with Eastside Pathology Incorporated of Bellevue. Although InCyte has 25 pathologists and Eastside has 11 pathologists, leaders at both pathology groups told Dark Daily that each group considers this a merger of equals. This is one key to understanding why this merger is happening. (more…)

Legal Fight over Gene Patents in AMP vs. Myriad Case to Be Subject of Oral Hearings at the Supreme Court, Just Months after Its Ruling in Prometheus Case

Both pathology profession and biotech industry have much at stake in how Supreme Court rules in this important case involving the patentability of genes

Legal challenges to gene patents are a high interest topic among pathologists and clinical laboratory scientists who perform genetic testing. Two high profile cases involving gene patents were accepted by the Supreme Court. A ruling was made in one case and the second case is continuing.

The Supreme Court issued a ruling in one case, titled Mayo Collaborative Services v. Prometheus Laboratories, Inc. (Prometheus). The dispute centered upon Prometheus’ method patents to testing for metabolites of the drug thiopurine in patients with gastrointestinal disease.

In a unanimous opinion, the Supreme Court ruled that these patents were invalid. Some medical laboratory scientists believe that the ruling could ultimately result in the invalidation of the even more significant gene patents, including those gene patents at issue in Association for Molecular Pathology, et al. v. Myriad Genetics (Myriad)..

New Ruling Has Huge Significance for Pathology and Lab Medicine

According to a story in CAP Today, in the Prometheus case, the court reasoned that a process of recognizing and reciting a law of nature is not patentable because laws of nature are not patentable.

Gene Patents by psmag.com

This summer, the Supreme Court will hear oral arguments in the case of Association of Molecular Pathology vs. Myriad Genetics. At issue is the patentability of genes. In March, the Supreme Court ruled unanimously against Prometheus in another case involving gene patents. (Image by PSmag.com)

“We have the first clear statement by the Supreme Court—and by a unanimous Supreme Court—that laboratory testing really amounts to nothing more than an observation about the correlation between an analyte and a particular medical condition is not patentable,” stated Jack Bierig, JD, Partner with Sidley Austin in Chicago, in the CAP Today article.

Bierig observed that the key question presented by Prometheus is where to draw the line between a law of nature and an application of the law. “There is a well-known distinction between laws of nature—which are not patentable; and applications of laws of nature—which are patentable,” he stated. “This is the first Supreme Court case that has addressed that question in the context of laboratory testing.”

The ruling overturned the U.S. Court of Appeals for the Federal Circuit (CAFC) decision which upheld the Prometheus patents.

Prometheus Decision May Render Myriad Gene Patent Claims Invalid

Important questions still remain about the patentability of genes. Just six days following the March 20, 2012, ruling in Prometheus, the Court remanded Myriad to the CAFC for reconsideration under the new ruling. In 2011, the CAFC found in favor of Myriad.

The Myriad case originated in 2009 when several plaintiffs, including the American Civil Liberties Union, filed a lawsuit challenging seven of Myriad Genetics’ (NASDAQ: MYGN) patents on the BRCA1 and BRCA2 genes and methods for interrogating the genes.

The question of gene patentability is of critical importance to pathologists, according to Roger D. Klein, M.D., J.D., a molecular pathologist and Chair of the Professional Relations Committee of the Association for Molecular Pathology (AMP). Klein observed in CAP Today that enforcement of gene patents in Myriad has interfered with pathologists’ ability to provide comprehensive interpretations involving multiple diagnostic test procedures. He asserted that the patents have also prevented pathologists from implementing cost-saving algorithms that reduce unnecessary testing.

“It’s the gene patents that are so universal,” agreed Wayne W. Grody, M.D., Ph.D., Professor of Pathology and Laboratory Medicine, Pediatrics, and Human Genetics at the University of California School of Medicine. “We really care much more about the impact of this case on Myriad and other cases that may come later,” stated Grody, who is also President of the American College of Medical Genetics and Genomics.

Biotechnology in a “Minor Panic” Following Prometheus Ruling

According to a story in The Economist, the biotechnology industry is in a “minor panic” at the implications of the high court’s unexpected ruling in Prometheus.

Klein rejects the biotechnology industry’s argument that patent invalidation will jeopardize the advancement of personalized medicine. “I think it will produce tremendous advancement and accelerate progress,” he stated.

John H. Noseworthy, M.D., President and Chief Executive Officer of Mayo Clinic, agreed. “[The new ruling] will favorably impact patient care because it provides broad access to good-quality bedside testing,” he stated in a story published by The Wall Street Journal.

At this point, oral arguments in the Myriad case are scheduled for this summer. In reconsidering the Myriad case, the CAFC may reverse its previous ruling upholding the BRCA gene patents, Bierig speculated. Or, the case may end up in the Supreme Court for final determination.

“I think there’s a chance that the Supreme Court could now rule that the product of the genome is basically a natural phenomenon,” observed Bierig. Klein agreed, suggesting that the Prometheus decision probably renders the Myriad patent claims invalid.

Pathologists and clinical laboratory managers will want to continue to follow the surprising developments in these clinically-relevant patent cases. The Prometheus decision sent a clear message that the Supremes are positioned on the side of the “medical” rather than “commercial” ethic in the area of genetic patents.

For its part, the biotechnology industry may ultimately have to resort to seeking relief through congressional revision of patent law as it pertains to genes. Of course, it can be expected that the clinical laboratory testing profession would be actively educating Congressman should there be consideration of such legislation.

—Pamela Scherer McLeod

Related Information:

For background on the patent cases:

Decisions in Prometheus, Myriad, and Classen Cases Help Clarify Patent Eligibility Requirements for Genetic Lab Tests and Molecular Diagnostics

By Zeus! Prometheus ruling checks patents

Prometheus unsound: America’s Supreme Court wallops the biotech industry

Top Court’s Patent Rejection Alarms the Biotech Industry

Massachusetts Blue Cross Blue Shield Initiates Pre-authorization for Painkillers to Control Drug Abuse

Pre-authorization for therapeutic drugs is one step on the path to payers requiring similar pre-authorization for expensive clinical laboratory tests

It’s a step on the road to pre-authorization for both certain therapeutic drugs and expensive genetic tests. Blue Cross Blue Shield of Massachusetts (BCBSMA) recently announced that it would work to curb drug abuse through a new pre-authorization program for certain prescription drugs.

Clinical laboratory managers and pathologists should take this as a sign that managed care plans are increasingly willing to tackle issues associated with unnecessary utilization by implementing pre-authorization requirements, among other strategies.

At the top of the pre-authorization list for BCBMSA will be such drugs as Oxcycontin, Percocet, and Vicodin. In recent years, the medical laboratory industry has watched the increase of pain management testing by physicians who treat patients taking these types of addictive drugs. (more…)

Researchers Predict that Aging Populations in Europe Will Increase Clinical Pathology Laboratory Testing Volume by 69.5% in Only Seven Years

Study evaluated the Western European market for in vitro diagnostic manufacturers

Are clinical laboratories in the United States and other developed nations around the world capable of meeting the expected surge of medical laboratory testing that is expected to come as large numbers of people age into their 60s and 70s? That is a question which has yet to be answered with much confidence by leading healthcare experts.

Recently a respected research firm offered its best guess at what lab specimen growth rates may be and its predictions may surprise many pathologists and clinical laboratory managers. At the same time, the right answer to this important question is critical for lab administrators when planning strategy.

It Takes Years to Expand Capacity of a Clinical Pathology Laboratory

That is because it typically requires years to expand the capacity of a medical laboratory organization. Then there is the challenge of hiring additional pathologists, Ph.D.s, and laboratory scientists at a time when many developed countries already report an acute shortage of trained medical laboratory professionals.

(more…)

Expect More Multiplex Clinical Laboratory Testing as Systems Biology Moves Closer to Clinical Practice

PeaceHealth and the P4 Medicine Institute will partner to encourage clinical use of systems-biology based diagnostics in community care settings

PACIFIC NORTHWEST—In the Pacific Northwest, PeaceHealth has become the first community health system to join the P4 Medicine Institute http://p4mi.org/ (P4Mi) in an important collaboration to demonstrate practical clinical applications of systems biology in patient care. P4Mi is itself a spin-off of the Institute for Systems Biology that was founded in 2000 by Leroy Hood, M.D., Ph.D., and several colleagues.

This is a partnership that pathologists and clinical laboratory managers will want to follow. It shows how innovators in molecular biology are pushing forward to engage community hospitals and physicians’ offices in the fast-developing field of systems biology. Their ambitious goal is to achieve early—even pre-symptomatic—diagnosis through the use of multiplex diagnostic assays to analyze genes and proteins.

(more…)

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