Thursday, April 17, 2025

GeneDx Buys Fabric Genomics for at Least $33M

On February 16, 2025, GeneDx announced it was acquiring Fabric Genomics, an advanced clinical bioinformatics company, for at least $33M.   The valuation may go as high as $51M with benchmarks.

See news at:


I can't speak to the total capital previously invested in Fabric, but a valuation of $51M for a clinical bioinformatics company is notable.   (Publicly held SOPHiA has a market cap of $180M).

The acquisition will support GeneDx clinical services in areas like urgent NICU genomics, newborn screening, and international expansion.  GeneDx has a market cap around $2.7B.  Yahoo Finance lists the 52-week trading range as $9-$115.   

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AI CORNER
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Chat GPT gives a concise summary of Fabric Genomics.  (Provided as-is.)
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Fabric Genomics, founded in 2009 and headquartered in Oakland, California, is a clinical bioinformatics company specializing in AI-driven genomic analysis and interpretation. Its platform enables rapid and accurate analysis of whole genomes, exomes, and gene panels, facilitating clinical decision support for applications such as rare disease diagnosis, hereditary risk screening, and oncology.

GEM and ACE

The company's technology, including tools like GEM and ACE, integrates deep genetic, phenotypic, and clinical data to prioritize disease-causing variants, achieving diagnostic yields up to 50% —which is significantly higher than the industry average. 

Clientele

Fabric Genomics serves a global clientele, including children's hospitals, hospital systems, commercial labs, and national genome initiatives, and has been instrumental in projects like the UK's 100,000 Genomes Project. 

Thesis

By leveraging explainable AI and scalable cloud-based solutions, Fabric Genomics has streamlined genomic workflows, reducing clinical review times and enhancing the scalability of genetic testing programs.


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Compare to SOPHiA?

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(Provided as-is.)

Fabric Genomics and SOPHiA GENETICS are both leaders in clinical genomics informatics, but they differ in scope, platform strategy, and business model.

Fabric Genomics

  • Focus: Primarily on rare disease diagnostics, neonatal ICU, hereditary risk, and whole genome/exome analysis.

  • Strength: AI-driven variant prioritization and clinical decision support, especially through its tools like GEM and ACE, known for explainability and high diagnostic yields.

  • Clients: Pediatric hospitals, academic medical centers, and national genome projects (e.g., UK 100,000 Genomes).

  • Business Model: Licensing cloud-based software for use in hospital labs and reference labs—platform-as-a-service for in-house clinical interpretation.

  • Scale: More niche and focused, with a leaner commercial footprint than SOPHiA.

SOPHiA GENETICS

  • Focus: Broader, covering oncology, inherited disorders, and infectious disease, with a strong presence in tumor profiling.

  • Strength: Cloud-native platform called the SOPHiA DDM™ (Data-Driven Medicine) platform, integrating genomics, radiomics, and clinical data into multimodal analysis.

  • Clients: Large hospital systems globally, including in Europe, Middle East, and the U.S., with over 800 customers.

  • Business Model: Software-as-a-service (SaaS) model—customers upload NGS data to SOPHiA’s cloud platform, which returns interpreted results.

  • Scale: Publicly traded (Nasdaq: SOPH), larger in revenue and global footprint, with strong oncology and pharma partnerships.

Key Differences

  • SOPHiA is a much larger, publicly traded firm with extensive oncology capabilities and pharma collaborations.

  • Fabric is smaller and focused more on rare diseases and deep AI-assisted variant interpretation, especially for high-throughput genomic programs.

In short: Fabric Genomics excels in deep clinical AI for rare disease diagnostics, while SOPHiA GENETICS offers a broader multimodal analytics platform with strong global and oncology reach.