Clarient Inc announces a new contractual agreement with Generation Health Inc (GH) making Clarient a preferred genetic testing lab for GH, thereby ensuring reimbursement of diagnostic tests done for GH’s nationwide network of payor clients and expanding Clarient’s potential market.

GH is a genetic benefit management company partially-owned by CVS Caremark, the nation’s largest pharmacy healthcare provider.

GH and Clarient will begin partnering in July 2010 to facilitate the diagnostic testing for gene mutations in patients who suffer from certain oncology indications. In January 2011, plans are to expand the program, offering managed diagnostic testing to all GH clients.

Clarient Vice Chairman and Chief Executive Officer Ron Andrews said, "This agreement marks a significant new step for Clarient as we expand our presence into managed care markets. Companies like Generation Health have become a critical link in the selling, marketing and management of genetic testing services. Generation Health assists insurance companies by identifying patients who are likely to benefit from molecular tests. Our agreement assists Clarient by bringing many new pathologists, oncologists, hospitals and their patients’ diagnostic needs to our advanced commercial cancer laboratory."

GH manages a systematic, comprehensive, and cost-effective process for administering genetic testing benefits and helping to integrate genetic information, where appropriate, into clinical practice.

"We chose Clarient as a Best Test™ laboratory within our network because of its expertise in oncology diagnostics, expansive service offering, leading edge technology and consultative approach," said GH Chief Executive Officer Rick Schatzberg. "We believe Clarient strengthens our ability to provide our clients with the best oncology genetic laboratory network available. Clarient’s extensive experience in clinical trial studies and its support of our evidence-based, clinical approach will be key as we develop a framework for coverage based on clinical validity and utility for our clients."

Source: Clarient