7 Things About the Path to Profitability Your Boss Wants You to Know
May 13th, 2016
Companion diagnostic services and personalized medicine are quickly revolutionizing the way that drugs are researched, created and marketed. To be prepared for these changes, it’s vital to understand the trends at work in the industry: Here’s what you need to know.
1. Applicability – and Demand – are Growing Quickly
Personal and companion diagnostic services have seen a rapid rise in popularity, starting in the early 2010s, and this is expected to continue. Part of the reason is awareness: physicians and consumers are becoming familiar with personalized medicine and unique diagnostic options and this has led to more market activity. Another important factor is applicability, especially in the testing market, where an increasing number of genetic tests in new disease areas have become available.
2. Decision-Based Applications are Also on the Rise
Decision-based applications help patients and physicians make choices. Today’s personalized tests and monitoring can provide valuable information when it comes to analyzing the chances of a treatment’s success or necessity. When marketing related products and services, it’s smart to focus on decision-making and the value of informed knowledge.
3. Physicians are Responsible for an Increasing Rise in Demand
While consumers are primarily attracted by the new information made available by such personalized testing, physicians often have another reason for encouraging these applications – smarter decisions. The latest work in this area allows doctors to make more immediate and accurate recommendations regarding drug treatments and alternative procedures in areas from oncology to companion devices for in vitro work. More information leads to better informed choices and happier patients…so don’t be surprised when doctors ask about these sorts of applications.
4. Consumers Are Primarily Interested in Predictive Testing
While physicians may be asking for more data to help prescribe the right therapy, individual consumers are more likely to notice predictive testing options. These are genetic tests and similar services that assess the risk of specific diseases. Such services are particularly useful for those who have certain hereditary health concerns in their family and want more information regarding their own personal susceptibility.
5. Pharma Companies are Already Investing…
A major roadblock to the development of personalized medicine has traditionally been lack of interest. Pharmaceutical companies have far better profit margins with drugs than with personalized tests or treatments. However, due to increased demand around testing this has begun to change. Evidence for this comes in the deal between Aveo and Biodesix for a $15 million research project on diagnostics. The deal splits the profits between both companies and provides a template for other ventures to follow.
6. …Because Drug Development is Changing
An important result for these new deals is that drug development is evolving. Data is becoming increasingly important and diagnostic services can help today’s pharma companies understand more clearly who stands to benefit from specific drugs. As such, these diagnostics can be used both in research and in marketing as a companion service to help patients understand if a drug is worth taking.
7. Bottom Line: Personalized Medicine is Already Here and Set to Expand
These innovative applications are important, but they are only the beginning. Personalized medicine and diagnostics promise to revolutionize not only the ROI of many healthcare services but also how drug research and investment is conducted. Stand by for rapid adoption and fast changes in the industry moving forward.