How much of CareDx’s revenue comes from haram?

CareDx earns its revenue from the following revenue sources:

  • Testing Services Revenue:

Surveillance testing service for kidney and heart transplant recipients.

  • Product Revenue:

Includes products that increase the chance of successful transplants by facilitating a better match between organ and stem cell donors and recipients. 

CareDx also offers post-transplant surveillance technology products. 

  • Digital and Other Revenue: 

Includes CardeDx’s transplant patient tracking software solutions and their mobile app AlloCare, a resource for transplant recipients to manage medication adherence, coordinate with Patient Care Managers, and measure health metrics. 

The contributions from each of CareDx’s revenue segments in their 2020 annual report were as follows:

CareDx Revenue Breakdown

Practical Islamic Finance concludes: 

None of CareDx’s revenue comes from anything inherently haram.

Does CareDx rely on interest to operate?

CareDx reports its Interest Income & Expenses as a net value.

According to the company’s annual report for the fiscal year ended December 31, 2020 (Numbers in thousands, U.S. dollars):

Interest Income (net): $271

Revenue: $192,194

Interest Income / Revenue: 0.14%

Practical Islamic Finance concludes: 

CareDx is not reliant on interest in its operations. 

What is CareDx’s Environmental, Social, and Governance (ESG) impact?

Environment

No notable environmental highlights.

Social

CareDx has a slightly below average Glassdoor rating of 3.0 out of 5 from over 50 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Upon reading the reviews, many employees pointed to the company’s poor response towards keeping their employees safe during the Covid-19 pandemic.

This included purposefully not disclosing positive cases in the establishment, not implementing regular Covid testing until a year into the pandemic, and no hazard paid time off. 

Additional reviews highlighted the company’s upper management having little respect for workers’ safety, ignoring employee feedback for a healthier work environment, and writing misleading reviews on Glassdoor for propaganda.

Governance

No notable governance highlights.

Practical Islamic Finance concludes: 

CareDx has a net negative ESG impact.

Comfort Rating

From CareDx’s business, financial, and ESG reviews, Practical Islamic Finance rates CareDx as:

Questionable to invest in from a Halal perspective.

Justification for our rating

We went back and forth on this one. Reading employee reviews painted a rather grim picture of the work environment at CareDx. We ultimately went with Questionable for the following reasons:

While the place seems like a rather crummy place to work and employees are not treated well, the violations are not of a caliber that would make us certain it was haram to invest in. Things like causing physical harm, destroying the environment, using slave labor or supporting the displacement of a population would make us immediately want to dissociate from the company and have nothing to do with it. Managerial incompetence or mistreatment of employees may motivate dissociation or alternatively may motivate us to become an active shareholder that pushes for key personnel changes. Hence, our “Questionable” rating.

Let us know in the comments, did we get this one right?

Sources

CAREDX, INC. 

CareDx Reviews

Authors