GeneDx, a leader in improved health outcomes through genomic insights, announced its plans to acquire Fabric Genomics, a pioneer in AI-based genomic interpretation. The deal enables GeneDx’s leadership in the next phase of genomic medicine: decentralized testing with centralized intelligence.
As DNA sequencing continues to become more accessible, decoupling interpretation services from the physical reliance on a wet lab enables more flexibility to seamlessly integrate with provider and health system workflows, both in the United States and around the world.
Fabric Genomics has proven its leadership in scaling complex interpretation services and an advanced AI-driven platform that has powered the interpretation of challenging genetic disease cases in support of patient diagnosis at some of the largest health systems, academic centers, and research partners around the globe.
Health systems will be able to tap into GeneDx’s centralized lab or perform sequencing at their institutions and then access the company’s industry-leading data asset through Fabric Genomics’ AI-powered interpretation platform. And this model will accelerate faster and earlier diagnosis of genetic diseases, delivering improved patient outcomes and reducing unnecessary costs for healthcare systems in the United States and globally.
The deal will expand GeneDx’s addressable market with multiple scalable revenue streams:
1.) NICU Genomic Testing—Each year, over 400,000 infants are admitted to U.S. NICUs, but only a small percentage receive a genetic test. Studies show that rapid whole-genome sequencing reduces diagnostic time and cost while improving outcomes. With Fabric Genomics’ platform integrated into the clinical workflows across major institutions, GeneDx can now rapidly deploy interpretation infrastructure to hospitals already sequencing in-house, capturing untapped demand and opening up access.
2.) Genomic Newborn Screening (gNBS)—With millions of annual births in the U.S. and over 120 million worldwide, the newborn genomic screening market represents one of the largest long-term opportunities in diagnostics. GeneDx’s leadership in early evidence generation—17,000+ healthy newborns sequenced via the GUARDIAN Study—and Fabric Genomics’ proven scalability position the combined company to support state and federal gNBS programs.
3.) Decentralization Drives Global Commercial Expansion — With global health systems shifting toward data sovereignty and local sequencing, Fabric Genomics’ cloud-based platform enables GeneDx to deliver centralized AI interpretation while complying with local regulations. This architecture supports flexible go-to-market strategies, enterprise software-as-a-service (SaaS), usage-based interpretation-as-a-service (IaaS), or embedded interpretation in national lab networks. With tailored commercial models, GeneDx expands its ability to serve regions such as EMEA, APAC, Canada, LATAM, and emerging markets.
4.) Platform Economics at Scale – With over 750,000 exomes/genomes sequenced, GeneDx’s dataset represents a significant barrier to entry and value engine for AI development, clinical decision support, and data monetization. And Fabric Genomics’ software transforms static data into a dynamic, recurring revenue-generating platform, driving growth through software margins and high-leverage interpretation services across geographies and clinical use cases.
At the deal’s closing, Fabric will continue to operate independently, maintaining its momentum and fostering organic growth. But GeneDx will provide commercial support both in the U.S. and internationally, accelerating the expansion of Fabric Genomics’ impact.
Under the deal, and subject to its terms and conditions, GeneDx will pay up to an aggregate of $33 million in cash upon closing, with total consideration potentially up to an aggregate of $51 million upon the achievement of certain milestones.
This acquisition, which has been approved unanimously by the company’s Board of Directors, is expected to close in the second quarter of 2025, subject to closing conditions.
KEY QUOTES:
“Healthcare is at an inflection point where integrating genomic insights into standard care is becoming essential – both for better clinical outcomes and for saving the healthcare system valuable dollars. To achieve this, we must evolve and provide adaptable solutions so this information can be used more proactively and without geographic constraints. Adding Fabric Genomics and their talented team moves us closer to that future, enabling our partners to deliver groundbreaking genomic insights to patients across the globe.”
“Both teams are united by a shared vision for the future of healthcare, a world where every genetic disorder is diagnosed as early as possible, paving the way for faster, more effective treatment and giving patients the greatest chance at living long, healthy lives.”
– Katherine Stueland, President and CEO of GeneDx
“This marks an exciting new chapter for Fabric Genomics. By joining forces with GeneDx, we’re combining two of the most powerful engines in genomic medicine, our AI-driven interpretation platform and GeneDx’s unparalleled rare disease data set. Together, we’ll make genome interpretation faster, more scalable, and more impactful, enabling clinicians to deliver precise answers and care to patients worldwide. This combination accelerates our founding mission to end the diagnostic odyssey and bring the full promise of genomic medicine into everyday healthcare and expedite the delivery of life-changing treatments.”
– Martin Reese, PhD, Co-Founder, President, and CEO, Fabric Genomics
