SG Blocks Inc. (SGBX) has recently made its way into the U.S. test lab market by forming a joint venture with Clarity Diagnostics.
SG Blocks is a leading company involved in the designing, innovating and fabricating container-based structures, while Clarity is leading the market as manufacturer of diagnostic equipment, rapid diagnostic tests including those performed over the counters.
The Clinical Laboratory Improvement Amendments or CLIA is regulatory law to supervise laboratory entities in the United States. The Centers for Medicare & Medicaid Services (CMS) regulates all laboratory testing procedures performed on humans in the country through this regulation.
Both companies come closer forming a joint venture to launch CLIA-certified laboratories in modular containers. The program will operate under the name Clarity Modular Lab Solutions (“CMLS”). SG Block will get ownership of majority stakes of 51% in CMLS. Also it will bring SG Blocks in competition with some largest clinical laboratories in the United States including LabCorp and Quest Diagnostics.
The JV has been signed its first contract to construct an extendable main lab. CMLS will construct that “Lab 1” outside of Boca Raton, Florida. CMLS expects completing constructing that project within 12 months as it is already working on the lab’s design.
Clarity preferred SG Blocks upon others because of its modern technology through which it could quickly deploy and redeploy labs in underserved areas requiring emergency testing. The labs so deployed will be certified under CLIA’s 1988 rules which require high connectivity. The transportation of diagnostic testing samples is an expensive process. High volume of diagnostic testing in the underserved areas is also a challenging task. Tackling with both the issues raises the requirement of CLIA-certified labs deployable at the point of collection. And that’s what the Clarity has been doing.
In today’s health services industry, about 70% of medical decisions rely upon the laboratory testing, according to Centers for Disease Control and Prevention (CDC). This brings the number of laboratory test to nearly 14 billion globally.