Baylor, Miraca Holdings agree to joint venture on clinical genetic testing
Baylor College of Medicine and Miraca Holdings Inc., today agreed on a joint venture in which the College will share ownership and governance of its clinical genetics diagnostic laboratories with the Japan-based international healthcare company that has a focus on clinical diagnostics and laboratory tests.
Baylor Miraca Genetics Laboratories will be built on Baylor’s existing Medical Genetics Laboratories, which engages in clinical laboratory genetic testing. The transaction is subject to regulatory approvals and other customary closing conditions.
The jointly-owned clinical diagnostic venture will be headquartered in Houston. The parties expect, initially, that the joint venture will be staffed by approximately 225 people.
Baylor has provided diagnostics services for over 35 years and is the No. 1 National Institutes of Health-funded genetics program. It also is home to one of three U.S.-based large-scale genome sequencing centers funded by the NIH. Baylor will continue to independently drive its genetic diagnostic research agenda and the Joint Venture is expected to fully support the academic mission of the College’s Department of Molecular and Human Genetics.
All Baylor faculty involved in clinical diagnostics will remain Baylor faculty members and employees. The College’s educational training programs in genetics and genome sequencing will continue operating through a formal academic affiliation with the Joint Venture, enabling trainees to have an opportunity to expand their laboratory diagnostic skills in a larger enterprise with samples coming from around the world.
Miraca, a holding company operating in the healthcare sector, is dedicated to in-vitro diagnostic, clinical laboratory testing and other healthcare-related businesses through its subsidiaries such as Fujirebio Inc., one of the major domestic in vitro diagnostic reagent manufacturers, and SRL, Inc., the largest clinical laboratory testing company in Japan. Miraca also has the largest U.S. independent anatomic pathology business, Miraca Life Sciences, headquartered in Irving, Texas, and is continuing to expand its footprint outside Japan. Miraca will provide its experience and capability to commercialize the Joint Venture.
Dr. Paul Klotman, president, CEO and executive dean of Baylor, said, “This partnership will bring together our top-ranked genetics program with a leading diagnostics company. The result will be an opportunity for tremendous growth of our clinical genetics testing program, while ensuring the quality of diagnostics to patients and healthcare providers on an international level.”
“Academic medical centers and teaching hospitals in Houston have lagged behind other areas of the country in commercializing medical inventions developed in their laboratories,”said Klotman. “With partnerships such as this, the potential for growing biotech into a major economic driver for Houston and the Texas Medical Center is tremendous.”
Klotman added, “What makes this venture so beneficial to our patients and community is that it pairs the academic leadership and innovation of a highly ranked Baylor program with the business acumen of a well-run, well-recognized strategic partner.”
Dr. Hiromasa Suzuki, president and CEO of Miraca, said, “We will aim to collaborate closely with Baylor, a pioneer in genetic testing, with respect to research, development and commercialization in order to continuously supply innovative genetic testing services to our customers.”
“We believe this important Joint Venture will lead Miraca to become a top-tier provider with a strong operating base of innovative genetic business in the U.S.,” he said.