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A company that has developed a blood test that can detect about 50 cancers at the earliest stages is having to cut back on its research and customer support programs to conserve cash.
Executives from the company, Grail, talked about their efforts to reduce costs, back away from efforts to help doctors track cancer in patients who already have cancer, and focus on efforts to win regulator and insurance company support for the existing Galleri cancer detection test.
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Grail is also trying to get regulator approval for a second version of the Galleri test that will look for a smaller number of cancer indicators and be cheaper and easier to offer to large numbers of people.
Company executives talked about the changes Tuesday during a conference call with securities analysts.
Grail is making the changes because of an October 2023 decision by the European Commission to force Illumina, a large biotech technology company that once owned Grail, to turn Grail into a separate company. The commission argued that letting Illumina keep Grail would stifle innovation and competition in the market for blood-based cancer detection tests.
Separation from Illumina has reduced Grail's access to investor funding.
What it means
Employer clients who were hoping to offer the Grail cancer detection test to their employees may have to wait.
Investors and regulators may not be rushing to help Grail just because it has a blood test that can detect cancer early.
The road to commercialization
Bob Ragusa, Grail's chief executive officer, said the employees still at the company are passionate about the company's mission.
"Real-world use of Galleri has detected many of the most aggressive cancers in early stages, including pancreatic, head and neck, esophageal, liver and stomach cancers," Ragusa said. "For the majority of these cancer types, there are no other screening options available."
Grail sold 35,200 tests in the second quarter, which ended June 30, executives said.
The current version of Grail's Galleri cancer detection test costs $949 and is usually not covered by health insurers or self-funded employer health plans.
Grail has already proved that the test is safe and detects cancer, but it's still moving the test through some of the studies needed to show whether the test can help reduce the number of late-stage cancers in people who get the test, or whether the test simply uncovers many small or slow-growing cancers that would not have been likely to cause significant health problems.
Grail has worked with Munich Re to persuade life insurers like John Hancock and MassMutual to offer the Galleri test as an extra benefit for their insureds.
Some insurers have looked into offering voluntary or worksite insurance products that would cover the kinds of genetic sequencing procedures used in the Galleri test and in some efforts to diagnose and treat cancers that have come to physicians' attention either through the Galleri test, other screening tests or patients' complaints about symptoms.
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Allison Bell
Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.
