New Company Will Provide Genetic Testing Benefit Management Services To Employers And Other Health Care Payors
Upper Saddle River, NJ – November 21, 2008 – Generation Health, Inc., a newly formed company focused on genetic testing benefit management, announced the completion of Series A financing from Highland Capital Partners, Correlagen Diagnostics, D2Hawkeye, and executive management. The Company will help employers and other health care payors address the rapidly evolving field of genetic testing, with the goal of capturing improved medical outcomes for its covered members while controlling medical costs.
Genetic testing and analysis represents the new frontier of medical science and clinical practice. It has the potential to improve diagnoses and guide medical treatment decisions. This will lead to better medical outcomes for patients while simultaneously reducing complications and expenses associated with traditional treatment patterns. “All healthcare payors will eventually have to address the area of genetic testing,” said Per G.H. Lofberg, Chairman, CEO and co-founder of the new company. “Our goal is to offer payors an organized approach to this exciting new field, and to help them manage the administration of this health benefit in a cost-effective manner.”
Generation Health is founded by a group of highly experienced health care executives. Mr. Lofberg was one of the creators and leaders of Medco Health Solutions, the country’s leading pharmacy benefit management company. “We see some clear parallels between the evolution of pharmacy benefit management and what is occurring in the field of genetic testing. Payors will need to put in place benefit designs that encourage the use of medically important and cost effective genetic tests, while limiting their exposure to run-away medical expense from diagnostic testing of marginal clinical utility.”
Mr. Lofberg’s co-founders include Richard K. Schatzberg, Chief Marketing Officer of Generation Health, J. Christian Kryder, M.D., Chairman and CEO of D2Hawkeye, and David Margulies, M.D., Chairman and CEO of Correlagen Diagnostics, a genetic testing and analysis company. Mr. Schatzberg is a veteran of the PBM-business, with a 20-year career with Medco Health Solutions, involving a number of leadership responsibilities in the commercial aspects of the business. Dr. Kryder, who will be a director of the company, is the founder of D2Hawkeye, a medical claims data mining and analysis company. Dr. Margulies, who also will serve as director of the company, has an extensive background in health information technology with Cerner Corporation, prior to founding Correlagen. Both D2Hawkeye and Correlagen contribute unique and proprietary know-how to Generation Health’s business model.
Highland Capital Partners is one of the country’s leading venture capital organizations with a strong history and commitment to innovation in health care and life sciences. “In these challenging economic times, there are still opportunities to build meaningful companies. We decided to partner with Generation Health because of the exceptional quality of the people and the enormity of the opportunity they are addressing. Their success will have a very significant impact on the rapidly evolving field of personalized medicine,” said Bob Higgins, general partner at Highland.
Added Highland’s Graham Gardner: “Genetic testing and personalized medicine has become a significant force in medical science and is beginning to impact day-to-day clinical practice. Generation Health is bringing to market a much needed approach to reimbursement that manages the complexities of diverse benefit plans across the country.”