According to news articles published in early December, Veritas Genetics, a Massachusetts-based company that hoped to lower the cost of whole-genome sequencing, is suspending its U.S. operations because of a lack of investment. Articles theorize that the decreased funding was driven mainly by new CFIUS regulations and heightened CFIUS scrutiny.
Early in December 2019, Veritas announced that its adverse financing situation had forced the suspension of its U.S. business. Veritas has stated that it is assessing potential paths forward, and there are rumors that one such path is the sale of the company. Veritas will no longer sell its tests, which include genetic testing for diseases and cancers (such as the BRCA test), in the United States. Veritas will continue to operate and sell its tests outside the United States.
Veritas first launched in 2014, and since 2015 it had raised $50 million in financing. Major investors included Chinese companies, such as Lilly Asia Ventures, which invested $10 million into the company, and Simcere Pharmaceutical. However, there has been increased scrutiny in the past two years for transactions that involve Chinese investors, especially when sensitive personal information, such as genetic information, is at stake. This year, for example, CFIUS forced iCarbonX, the Chinese, majority owner of U.S. company PatientsLikeMe, to divest its stake in the U.S. company.
According to news reports, recent CFIUS activity may have scared away not only Chinese investors but also non-Chinese investors reluctant to invest in a company with Chinese ownership. Non-Chinese investors may fear that Veritass Chinese ownership will lead to increased CFIUS scrutiny of any investment into Veritas, regardless of the investors nationality. Investors may also worry that CFIUS scrutiny could delay their return on investment if their firms are forced to stall business to address CFIUSs concerns.
No doubt the proposed CFIUS regulations from September also concern foreign investors: the proposed regulations explicitly target U.S. companies that maintain or collect sensitive personal data of U.S. citizens. While most sensitive personal data only triggers the proposed regulations if the U.S. business maintains or collects such data on greater than one million individuals, companies with genetic data are considered to be covered businesses no matter how many individuals are involved. Thus, companies like Veritas will always fall under CFIUS jurisdiction if a foreign person would acquire certain rights in the company. These rights include:
Several genetic and biopharmaceutical companies expressed concern in public comments to the regulations that the proposed regulations, specifically including all genetic data in the definition of sensitive personal data, would stymie foreign investment in these companies. Several companies argued that the Department of the Treasury should revise the proposed CFIUS regulations to require that genetic data be identifiable. Companies often are in possession of anonymized genetic information, which these companies argued does not pose a risk to national security. We await publication of the final regulations and whether CFIUS will make any changes to the definition of sensitive personal data, particularly as it pertains to genetic information. It is to be seen whether U.S. companies in other industries will face similar funding obstacles as foreign investors grow more wary of CFIUS.
Original post:
Veritas, a US Genetic Sequencing Company, Suspends US Operations Due to Decreased Funding; CFIUS Thought to be Leading Cause - Lexology
- Genetic Discrimination Is Coming for Us All - The Atlantic - November 16th, 2024
- Family connection: Genetics of suicide - WNEM - November 16th, 2024
- Study links heart shape to genetic risk of cardiovascular diseases - News-Medical.Net - November 16th, 2024
- Genetic architecture of cerebrospinal fluid and brain metabolite levels and the genetic colocalization of metabolites with human traits - Nature.com - November 16th, 2024
- Genetic connectivity of wolverines in western North America - Nature.com - November 16th, 2024
- Toward GDPR compliance with the Helmholtz Munich genotype imputation server - Nature.com - November 16th, 2024
- Leveraging genetic variations for more effective cancer therapies - News-Medical.Net - November 16th, 2024
- Bringing precision to the murky debate on fish oil - University of Arizona News - November 16th, 2024
- International experts gathered in Tashkent to tackle rare disease for Uzbekistan - EurekAlert - November 16th, 2024
- Mercys Story: Living life with 22q, a genetic condition - WECT - November 16th, 2024
- Cold case with ties to Houghton County solved through genetic genealogy after 65 years - WLUC - November 16th, 2024
- 23andMe customer? Here's what to know about the privacy of your genetic data. - CBS News - November 16th, 2024
- Single-cell RNA analysis finds possible genetic drivers of bone cancer - Illumina - November 16th, 2024
- Multi-trait association analysis reveals shared genetic loci between Alzheimers disease and cardiovascular traits - Nature.com - November 16th, 2024
- With 23andMe Struck by Layoffs, Can You Delete Genetic Data? Here's What We Know - CNET - November 16th, 2024
- Genetic testing firm 23andMe cuts 40% of its workforce amid financial struggles - The Guardian - November 16th, 2024
- Genetic study solves the mystery of 'selfish' B chromosomes in rye - Phys.org - November 16th, 2024
- Genetic changes linked to testicular cancer offer fresh insights into the disease - Medical Xpress - November 16th, 2024
- Eating less and genetics help you to live longer, but which factor carries the most weight? - Surinenglish.com - November 16th, 2024
- We must use genetic technologies now to avert the coming food crisis - New Scientist - November 16th, 2024
- NHS England to screen 100,000 babies for more than 200 genetic conditions - The Guardian - October 6th, 2024
- Largest-ever genetic study of epilepsy finds possible therapeutic targets - Medical Xpress - October 6th, 2024
- 23andMe is on the brink. What happens to all its DNA data? - NPR - October 6th, 2024
- The mountains where Neanderthals forever changed human genetics - Big Think - October 6th, 2024
- Gene Activity in Depression Linked to Immune System and Inflammation - Neuroscience News - October 6th, 2024
- Integrative multi-omics analysis reveals genetic and heterotic contributions to male fertility and yield in potato - Nature.com - October 6th, 2024
- Genetic and non-genetic HLA disruption is widespread in lung and breast tumors - Nature.com - October 6th, 2024
- Aneuploidy as a driver of human cancer - Nature.com - October 6th, 2024
- Myriad Genetics and Ultima Genomics to Explore the UG - GlobeNewswire - October 6th, 2024
- Biallelic and monoallelic variants in EFEMP1 can cause a severe and distinct subtype of heritable connective tissue disorder - Nature.com - October 6th, 2024
- Genetic and clinical correlates of two neuroanatomical AI dimensions in the Alzheimers disease continuum - Nature.com - October 6th, 2024
- Cracking the Genetic Code on Facial Features - DISCOVER Magazine - October 6th, 2024
- Ancestry vs. 23andMe: How to Pick the Best DNA Testing Kit for You - CNET - October 6th, 2024
- The Mercedes-AMG C63 is bold, but beholden to its genetics - Newsweek - October 6th, 2024
- The Austin Chronic: Texas A&Ms Hemp Breeding Program Adds Drought-Resistant Genetics to the National Collection - Austin Chronicle - October 6th, 2024
- Genetics and AI Help Patients with Early Detection of Breast Cancer Risk - Adventist Review - October 6th, 2024
- 23andMe Is Sinking Fast. Can the Company Survive? - WIRED - October 6th, 2024
- Genetic variations in remote UK regions linked to higher disease risk - Medical Xpress - October 6th, 2024
- Comprehensive mapping of genetic activity brings hope to patients with chronic pain - Medical Xpress - October 6th, 2024
- Genetics - Definition, History and Impact | Biology Dictionary - June 2nd, 2024
- Gene | Definition, Structure, Expression, & Facts | Britannica - June 2nd, 2024
- Raha Kapoor's blue eyes remind fans of her great-grandfather, Raj Kapoor; here's what genetics says - IndiaTimes - December 30th, 2023
- Human genetics | Description, Chromosomes, & Inheritance - December 13th, 2023
- BASIC GENETICS INFORMATION - Understanding Genetics - NCBI Bookshelf - December 13th, 2023
- Introduction to Genetics - Open Textbook Library - December 13th, 2023
- "When them genetics kick in its all over" - NBA fans send in rib-tickling reactions as LeBron James attends Zhuri James' volleyball game -... - October 16th, 2023
- David Liu, chemist: We now have the technology to correct misspellings in our DNA that cause known genetic diseases - EL PAS USA - April 7th, 2023
- World Health Day 2023: Understanding the science of Epi-genetics and how to apply it in our daily lives - Free Press Journal - April 7th, 2023
- Genetics - National Institute of General Medical Sciences (NIGMS) - March 29th, 2023
- GENETICS 101 - Understanding Genetics - NCBI Bookshelf - March 29th, 2023
- People always think Im skinny because of good genetics theyre shocked when they see what I used to lo... - The US Sun - March 29th, 2023
- Forensics expert explains 'genetic genealogy' process believed to be used in Kohberger's arrest - KTVB.com - January 6th, 2023
- Idaho student murders: What is genetic genealogy, a tool reportedly used to help capture the suspect? - FOX 10 News Phoenix - January 6th, 2023
- What is a Genetic Counselor and How Can They Help You Navigate Your Healthcare Journey? - ABC4.com - December 3rd, 2022
- Ancient Art and Genetics Reveal Origin of World's Most Expensive Spice - The Wire Science - June 26th, 2022
- Myriad Genetics Teams Up with Epic to Make Genetic Testing Accessible to More Patients with Electronic Health Record (EHR) Integration - GlobeNewswire - June 26th, 2022
- Obesity and genetics: Expert shares insights - Hindustan Times - June 26th, 2022
- Researchers discover genetic variants that increase Alzheimer's risk - WCVB Boston - June 26th, 2022
- Where science meets fiction: the dark history of eugenics - The Guardian - June 26th, 2022
- Clinical Conference: A Discussion with BASE10 Genetics - Skilled Nursing News - June 26th, 2022
- Genetics Really Said Copy And Paste: People Are Amazed At How Similar This Woman Looks To Her Dad In These 5 Recreation Photos - Bored Panda - June 26th, 2022
- 49 Genetic Variants That Increase the Risk of Varicose Veins Identified - Technology Networks - June 26th, 2022
- Genetic relationships and genome selection signatures between soybean cultivars from Brazil and United States after decades of breeding | Scientific... - June 26th, 2022
- Earlham woman loses weight with ChiroThin after her own doctor told her "genetics" wouldn't allow that to happen | Paid Content - Local 5 -... - June 26th, 2022
- Science and genetics used to boost Fernside farm - New Zealand Herald - June 26th, 2022
- Genetics-based guidelines to buying a bull at an auction - Farmer's Weekly SA - June 26th, 2022
- Polio: we're developing a safer vaccine that uses no genetic material from the virus - The Conversation - June 26th, 2022
- 7 lifestyle habits which can halve your risk of dementia - World Economic Forum - June 26th, 2022
- Addressing the 'Trust Factor': South Carolina Researchers Tackle Health Disparities Using Genetics - Physician's Weekly - June 8th, 2022
- Dumb luck, genetics? Why have some people never caught COVID-19? | Daily Sabah - Daily Sabah - June 8th, 2022
- Genetics Breakthrough in Sea Urchins to Aid in Biomedical Research - Scripps Institution of Oceanography - June 8th, 2022
- Genetic Control Of Autoimmune Disease Mapped To Cellular Level - Bio-IT World - June 8th, 2022
- Bazelet to Supply Its Federally Legal Cannabis Genetics to DEA Approved Research Entities for Rigorous Scientific Research on the Clinical Effects of... - June 8th, 2022
- Alameda County Awaits Key Decision Regarding The Use of Genetic Testing in Asbestos Cases - JD Supra - June 8th, 2022
- Diversity in Genetic Research Is Key to Enhancing Treatment of Chronic Diseases in Africa - Technology Networks - June 8th, 2022
- CSU partners with American Hereford Association on genetics research - Beef Magazine - June 8th, 2022
- Unraveling the Tangled History of Polar Bears to Brown Bears Using Genetic Sequencing - Nature World News - June 8th, 2022
- Did My Lifestyle or Genetics Cause ATTR-CM? Learning More About This Heart Condition That Often Goes Misdiagnosed - SurvivorNet - June 8th, 2022
- Your genes affect your education. Here's why that's controversial. - Big Think - June 8th, 2022
- Study mines cancer genetics to help with targeted treatment - ABC News - April 26th, 2022