3 min read February 2024 — In an interview with Invest:, Kengo Takishima, president and CEO of Baylor Genetics, shared insights into the company’s journey in genetic testing through innovative technology. Baylor Genetics has contributed to the Texas and Houston communities, both through its genetic testing services and by nurturing local talent and encouraging collaboration. Looking ahead, the company is concentrating on advanced solutions such as whole genome sequencing for rare diseases and a preventive approach on healthcare.
Can you provide us with an overview of Baylor Genetics and its mission?
For more than 45 years, Baylor Genetics has been a pioneer in genetic testing and precision diagnostics. We enable clinicians and their patients to avoid a lengthy diagnostic odyssey and guide medical management. Our mission is to offer trusted answers for complex genetic conditions utilizing cutting-edge technologies. Originally established in the 1970s as part of Baylor College of Medicine for clinical research, Baylor Genetics became a commercial entity in 2015. Since then, we have focused on offering patients, healthcare providers, and other laboratories genetic testing solutions for family planning, pregnancy, neonatal and pediatric critical care, rare disease, oncology, and specialized areas like neurodevelopmental disorders. We aim to help as many people as possible who have genetic conditions, translating cutting-edge genetic technology into meaningful clinical tools. We have conducted more than four million tests to date, and we are seeing strong double-digit growth year over year.
What is the overall contribution or impact that Baylor Genetics has had on Texas and the Houston community?
Baylor Genetics is a joint venture of H.U. Group Holdings, the No. 1 clinical lab in Japan, and Baylor College of Medicine, the No. 1 NIH-funded Department of Molecular and Human Genetics. Our company headquarters and 73,000-square-foot state-of-the-art lab is in the Texas Medical Center. We contribute to the Texas healthcare ecosystem by providing genetic testing services to the local community through healthcare providers, including top children’s hospitals, and collaborating with leading researchers and institutions. Additionally, we focus on recruiting and training talented individuals from local universities to become strong contributors in the local workforce. This effort not only supports the Texas medical community but also supports the local economy by creating high-quality jobs.
How does Baylor Genetics work on developing, retaining, and attracting top talent?
Strong and highly skilled teams are essential for success, especially given the competitive nature of our industry. To develop our people, we provide growth opportunities through challenging projects and collaborative environments that involve cross-functional collaboration across science, technology, business, and clinical areas. This approach allows our employees to grow rapidly within the company. We also offer training and educational programs, including lectures by top scientists, ensuring our team has a deep understanding of genetics, science, and technology.
How are you working to improve the accessibility and affordability of genetic testing?
Genetic testing is inherently complex, requiring not just the delivery of test results but also comprehensive support, including genetic counseling, to ensure the information is effectively utilized. Our approach involves enhancing the amount of meaningful information provided with our genetic tests, enabling physicians and patients to make informed decisions about subsequent care. We’re investing in digital tools to streamline the testing process, from ordering to reporting, making it easier for patients and physicians to access our services. Additionally, we’re expanding our commercial reach to make our genetic testing available to more hospitals, not just through sales efforts but also by educating healthcare providers on the value and implications of genetic testing, ensuring it’s used effectively.
How are you addressing patient privacy?
We place a high priority on compliance with laws and regulations, setting a high bar for ourselves in terms of adhering to patient privacy laws, like HIPAA. Our IT systems are designed to be secure, safeguarding patient information. Moreover, we’ve established processes to protect patient data and provide extensive training to our staff to emphasize the importance of security and privacy. Protecting patient privacy is a critical aspect of our operations, and we continuously strive to maintain the highest standards of security.
How does Baylor Genetics’ unique origin and partnership model contribute to its success?
Baylor Genetics stands out due to our origins as a joint venture combining academic expertise and commercial capabilities. We collaborate closely with Baylor College of Medicine, particularly with its top-ranked Molecular and Genetics department, to commercialize scientific research into clinically accessible tests. This synergy allows us to address the unmet needs of patients by transforming cutting-edge research into practical solutions. Additionally, our partnership with H.U. Group Holdings enables us to introduce our genetic testing services to Japan and other global markets. Over the past nine years, we’ve evolved from our academic roots to develop strong commercial capabilities and a culture focused on growth and learning. This agile and learning-oriented environment enables us to rapidly adapt to changes in the genetic testing market, ensuring we continue to offer valuable services and products to our patients and customers. Our unique culture, rooted in a commitment to developing talented individuals with a growth mindset, is a key aspect of our identity and success.
How have the ongoing economic changes, including high inflation and interest rates, impacted your market, and what are your biggest challenges?
Over the past decade, the genetic testing market has experienced rapid growth, attracting many new entrants supported by venture capital and private equity. This has led to aggressive competition for market share, which, while beneficial for market growth and increasing access to genetic testing, also resulted in a crowded marketplace. Some companies attempted to grow by lowering prices and expanding their commercial teams, but over time this approach became unsustainable. Many faced challenges as investor support waned, leading to restructuring efforts. In contrast, Baylor Genetics adopted a different strategy, focusing on patient care and providing high-quality genetic testing solutions rather than rapid expansion. This approach prioritized stability and loyalty, allowing us to gradually expand our customer base and test offerings. Even in challenging market conditions, our commitment to quality and patient support has accelerated our growth and led to a strong, sustainable business model.
What is next in the pipeline for Baylor Genetics?
Our signature product is comprehensive Whole Genome and Exome Sequencing for rare disease patients, primarily newborns in NICUs and pediatric patients requiring diagnostics for complex conditions. We provide answers with a single test, improving efficiency and outcomes for these patients. Our goal is to enhance the quality of this comprehensive testing to provide more answers and incorporate advanced technologies like RNA sequencing and long-read sequencing. As sequencing costs continue to decrease, we anticipate expanding our testing to not only disease patients but also healthy individuals. This will enable a predictive and preventative approach to healthcare. Ultimately, we aim to help transform healthcare, creating a future where personalized medicine and precision diagnostics is accessible to everyone, with treatments and preventative measures tailored to individual genetic profiles.
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