OC Diagnostics Sees Hiring Surge After Four-Year Decline

A Positive Turnaround: Employment Growth in Orange County’s Diagnostics and Testing Sector

The diagnostics and testing sector in Orange County is experiencing a notable employment growth for the first time in four years, marking a critical turnaround following the pandemic’s challenging aftermath. A recent report from the Business Journal indicates that employment within this hub of diagnostic firms increased by 1%, bringing the total headcount to 4,134 for 12 top listed companies. This uptick is encouraging given the prior years’ employment declines, which included a 3% decrease last year and a nearly 1% drop in 2022. The staffing fluctuations are a reflection of the broader U.S. healthcare industry’s response to the urgent demand for COVID-19 testing supplies, which saw rapid growth followed by substantial layoffs as testing needs dwindled.

Quest Diagnostics Inc. continues to hold its position as the largest diagnostics firm in the region, maintaining a workforce of 2,500 employees in Orange County. Their advanced diagnostics laboratory in San Juan Capistrano is a cornerstone of innovation benefiting both local and international patients. Recently, Quest Diagnostics launched a new test for the Oropouche virus, an emerging disease affecting South and Central America, further showcasing its commitment to leading advancements in diagnostic technology.

A couple of companies have significantly increased their headcounts. Notably, Ambry Genetics Corp., recently acquired by Tempus AI Inc. for $600 million, reported a remarkable 16% increase in their workforce, bringing their total to 268 employees. Ambry’s success can be attributed to its best-in-class genomic testing services and initiatives aimed at fostering a strong employee culture, such as hybrid work opportunities. Their innovative Patient for Life program reanalyzes genomic data for patients who have previously submitted samples, highlighting the company’s ongoing commitment to precise diagnostics as new gene discoveries emerge.

In addition to Ambry, MDxHealth SA also experienced notable growth, increasing its workforce by 11% to 160 employees. The precision diagnostics firm recently achieved operational profitability for the first time and has recorded consistent revenue growth for 17 consecutive quarters. The company’s strategy includes both acquisitions and channel growth opportunities, exemplified by its recent $15 million acquisition of the ExoDx business, expected to generate significant revenue in the coming years.

On the other hand, the industry is not without its challenges. Newport Beach-based Embic Corp., which was progressing in developing an FDA-approved Alzheimer’s test, has encountered setbacks and terminated its workforce amid efforts to sell its assets. The company had championed a noninvasive test boasting a 97% accuracy rate for determining early signs of Alzheimer’s disease. CEO Dennis Fortier revealed that they are now seeking to transfer their technology to a larger company with better resources for global distribution.

Additionally, oncology diagnostics firm Oncocyte Corp. has rebranded as Insight Molecular Diagnostics Inc. (iMDx) and relocated its headquarters from Irvine to Nashville, Tennessee. This strategic shift signifies an expanded focus beyond oncology into transplant medicine, illustrating the evolving landscape of diagnostics and the company’s repositioning in response to market needs.

In summary, the diagnostics and testing sector in Orange County is witnessing a critical rebound, with increasing employment figures reflecting a gradual return to stability following the disruptions caused by the pandemic. With leading firms like Quest Diagnostics and rising players like Ambry Genetics and MDxHealth paving the way through innovative services and strategic expansions, the industry is well-placed to address both local and global healthcare needs. While challenges remain, particularly with companies like Embic Corp. and Insight Molecular Diagnostics navigating their respective hurdles, the overall trajectory suggests a resilient and adaptive sector poised for growth in the coming years.