Health: Genetic Tech shares soar on confirmation sales of new breast cancer test are set for Q1

Genetic Technologies (ASX:GTG) shares doubled this morning after the company confirmed the US launch date for its latest breast cancer test.

The company says the GeneType product will be released in the US commercially by the end of March.

It is soft launching the product in 20 centres in eight US states first, with a full commercial launch by the end of June.

The stock rose from 0.6c to 1.2c when the market opened, before falling back to 1c.

Late last year the company was aiming to start sales in Australia in the March quarter of this year, saying it was “looking to secure” six clinics in Victoria, and six in NSW where test kits could be bought. Genetic Technologies shareholders were promised a two-for-one deal.

Breast is best

Genetic Technologies announced the new test in May 2019 for breast and colon cancer.

The previous test for breast cancer risk was called BREVAGenplus, based on the BRCA gene — the one that prompted actress Angelina Jolie to undergo a preventative double mastectomy.

But it struggled to sell the test, then flirted with blockchain, before returning to cancer risk testing.

As opposed to the BRCA gene test which only looks for the one gene mutation, the new test provides a polygenic risk score, a number which counts the cumulative effects of a number of genes.

They are comparatively cheap to run, now the costs for individual genetic testing have come down.

The risk tests are not diagnostic tests, but give a risk factor over periods of time and give people the opportunity to plan their lives accordingly.

Genetic Technologies is pitching the testing kit at 35-50 year olds, the age at which government-funded testing for breast and colon cancer kicks in, priced at $US249 ($363) per kit.

In other ASX health news:

The CFO of troubled pharmaceuticals distributor Sigma (ASX:SIG) has resigned. Iona MacPherson resigned “by mutual agreement” as of today. Executive general manager of retail pharmacy Jeff Sells will fill in until a replacement is found. CEO Mark Hooper said “the timing of this change is not ideal” but promised it wouldn’t impact on the company’s continuing transformation.

A subsidiary of doggie cancer curer PharmAust (ASX:PAA) said last night it had lost a contract but followed that this morning with news it’d secured an extension of another. The net result is that revenue from that company will fall from $4.2m to $3.34m.