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Diaceutics and Alva10 announce new partnership

Diaceutics PLC, (AIM: DXRX), has announced a new partnership with Alva10 to address test coverage and reimbursement challenges in precision medicine diagnostics. The partnership will leverage Diaceutics’ newly-launched platform DXRX – The Diagnostic Network® to facilitate collaboration between pharma, health insurance and government payers, labs and diagnostic companies earlier in the test development process and deliver enhanced coverage and reimbursement support for biomarker testing to improve patient outcomes.

The partnership sees Alva10 join the DXRX global network of leading providers in precision medicine diagnostics in 51 countries including the areas of test standardisation, access and reimbursement, quality assessment, laboratory training, technical support and education, all with the shared vision of enabling the seamless delivery of diagnostic testing for precision medicines.

Alva10 works with payers and physicians to identify areas of inefficient spend, where coverage of diagnostic tools can improve patient outcomes and payer economics. Through the company’s proprietary model M.A.T.E.TM, Alva10 restructures the relationship between health insurance payers and precision medicine diagnostic companies to increase utilisation and compliance. This enables optimal use of diagnostic tools to improve diagnosis of disease, determine drug response, and identify adverse events.

Diaceutics’ partnership with Alva10 on its DXRX  platform addresses the need for a better test reimbursement model in the US, to enable collaboration earlier in the development process, so that test developers and providers are adequately resourced to develop tests for new therapies coming to market. In today’s system, the most common practice for test reimbursement involves a laboratory or diagnostic company developing the test, followed by a process to prove clinical utility and cost-effectiveness of the test. The end goal is to gain coverage and reimbursement at a level that enables market success for the test’s associated therapy.

Alva10’s partnership on DXRX is enabling a live collaboration on the platform’s marketplace to investigate whether a more equitable level of reimbursement for PD-L1 testing is needed. The collaboration is currently recruiting labs and diagnostic companies to participate in building a repository of evidence that will show whether an improved reimbursement model for PD-L1 testing is needed in order to improve patient outcomes in the US.[i]

Hannah Mamuszka, CEO, Alva10, said: “Today’s model for reimbursement does not take into account the value of the diagnostic, the investment required to develop it, or the resources required to run that diagnostic in a way that allows physicians to receive the information in a timely way to inform patient care.

“The delivery of a value-based model via DXRX is designed to solve these challenges by engaging pharma and payers much earlier in the development process using a secure platform to enable collaboration on precision medicine diagnostics in real-time. By working with payers to gain agreements up front on the amount of data required for coverage at launch, and implementing economic modelling around value-based calculations to incentivize the use of these tests in the market, significant opportunities for cost-saving and increased return on investment are created for all stakeholders in the value chain. These include the elimination of more costly downstream procedures, reduction of time patients spend in the hospital as a result of suboptimal therapies, and the reduction of patient leakage due to more patients receiving the most effective therapies in the timeliest manner.

“We are delighted to join DXRX as a service provider to be able to deliver this enhanced reimbursement solution on a much broader scale to labs, pharma, payers and diagnostic companies across the US.”

Jeff Schreier, Senior Director, Innovation at Diaceutics (pictured), said: “As we see exponential growth in the number of precision medicine therapies coming to market, our pipeline of global diagnostic testing data points to a growing number of opportunities for industry collaboration by all stakeholders in the value-chain. Test access and reimbursement are critical pieces of the end-to-end development and commercialisation process which DXRX has been designed to transform. We are delighted to have Alva10 on board to enable this enhanced coverage and reimbursement solution which will help testing providers to extract more value from precision medicine. This is a truly exciting time for precision medicine, and we invite interested organisations to explore the marketplace for early collaboration opportunities on DXRX.”

[i] Data published in Diaceutics’ latest PM Readiness Report reveals that, although PD-L1 has a test adoption rate of 80% for NSCLC, hurdles such as reimbursement which are inadequately addressed at launch planning stage have resulted in a time to test adoption of up to 4 years and only 50% of patients getting the right treatment at the right time, which is an industry red flag needing to be urgently addressed for patients.