Fulgent Genetics announced an expansion of its partnership with Foundation Medicine that will bring the FoundationOne®PGx pharmacogenetic test to market. The new test combines genomic sequencing with drug‑response profiling, enabling clinicians to identify genetic variants that influence drug metabolism and efficacy and to tailor therapy accordingly.
Fulgent’s Q1 2026 financial results underscored the challenges the company faces. Revenue fell to $71.1 million, missing analysts’ estimate of $72.68 million, while the non‑GAAP loss per share was –$0.36 versus an expected –$0.11. The shortfall was largely driven by the loss of the company’s largest customer, which had represented 22 % of 2025 revenue and has shifted to in‑house testing. Despite the miss, Fulgent maintained its full‑year 2026 revenue guidance of approximately $350 million and updated its non‑GAAP loss guidance to about –$46 million, or –$1.59 per share.
The FoundationOne®PGx launch fits into Fulgent’s broader strategy to diversify revenue and strengthen its precision‑medicine portfolio. The company already offers pharmacogenomic panels, including a Focus Panel and a Comprehensive Panel, and the partnership expands its capabilities by adding a comprehensive oncology‑focused PGx test that covers nine key genes (CYP2C19, CYP2C9, CYP2D6, DPYD, G6PD, NUDT15, TPMT, UGT1A1, and UGT1A4). The pharmacogenomics market is projected to grow rapidly, and the new test positions Fulgent to capture a share of that expansion while leveraging Foundation Medicine’s existing oncology customer base.
Todd Druley, Chief Medical Officer at Foundation Medicine, said the test “is an important addition to our portfolio, helping healthcare providers anticipate potential toxicity of medicines, reduced treatment effectiveness, and increased risk of adverse reactions.” Brandon Perthuis, Chief Commercial Officer at Fulgent, noted that the launch “aligns with recent guideline updates and professional society positions signaling a clear shift toward proactive integration of PGx testing into routine oncology care.”
Investors reacted to the Q1 earnings miss and the loss of a major customer, which tempered enthusiasm for the new partnership. The market’s focus on the revenue shortfall and customer transition highlights the near‑term headwinds Fulgent must navigate even as it pursues growth in pharmacogenomics.
Fulgent’s guidance for the remainder of 2026 remains unchanged, with the company reaffirming its revenue outlook of $350 million and its non‑GAAP loss guidance of –$46 million. Management expressed confidence that the new PGx offering, combined with ongoing bio‑pharma services growth, will help offset short‑term losses and support long‑term revenue expansion.
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