New
Study Addresses Key Issues and Requirements Shaping the Adoption of
Pharmacogenomics Testing
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Pharmacogenomics Business Models"
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Pharmacogenomics Business Models"
January 5, 2004/Newton Upper Falls, MA/Cambridge Healthtech Institute
announces the publication of Successful Pharmacogenomics Business
Models, a new report that provides a theoretical framework to evaluate
pharmacogenomics initiatives within pharmaceutical companies.
Emerging pharmacogenomics technologies are presenting the drug discovery
and development community with the promise of targeted therapies and
potential new revenue streams. Pharmacogenomics is also creating new
opportunities for diagnostic companies to develop tests that can be used
to determine patient response to a drug and screen out inappropriate
candidates.
In an interview with CHI, Dr. Stephen Little, CEO of DxS Ltd., a leading
provider of pharmacogenomics services, discusses the market
opportunities, challenges, and outlook for pharmacogenomic tests.
“Ultimately, I think we will see three factors which will drive
personalized medicine forward. The first is regulatory pressure. The
second is that we need one or two more good examples which demonstrate
that a targeted therapy can also be a profitable therapy. Certainly
current therapies such as Herceptin and Gleevec which have a companion
diagnostic are generating significant sales, but a few more successes
would be very helpful. It may well be the case that more innovative drug
companies push ahead with diagnostic/therapeutic combinations to get
their drugs to the people who need it. Finally, the diagnostic industry
can work independently of the pharmaceutical sector to bring
pharmacogenomic tests to market.”
The key—and challenge—to the widespread adoption of pharmacogenomic
testing will be to successfully navigate the evolving regulatory
requirements and commercial challenges to formulate business models that
will enable diagnostic companies to forge mutually beneficial
partnerships with drug companies. Dr. Little comments on the possible
business models for diagnostics companies to use their tests in
combination with therapeutics.
“There are two distinct opportunities for using diagnostics in
combination with therapeutics. On the one hand, there are diagnostic
tests that will allow the selection of one of several therapies; on the
other, there is a diagnostic test that is a prerequisite to prescribing
a therapy… In this case, the diagnostic is the gateway to the therapy
and the drug industry will have a great interest in ensuring that these
tests are readily available. Furthermore, drug companies will have a
different view of these tests than diagnostic companies. For them the
priority is not to maximize diagnostic revenue but rather to minimize
the chance of the diagnostic delaying the launch or hampering drug
sales. The key issues will be timing, availability, convenience for the
doctor, and regulatory compliance. If that means accepting a lower
return on the diagnostic for an increased drug sale that is exactly what
will happen.”
Dr. Little also comments on the concern of some pharmaceutical companies
that targeted medicines will mean reduced market sizes.
“Will pharmacogenomics mean the end of blockbuster drugs? I doubt it…If
you have a diagnostic that improves both the chances of getting a drug
through development so that its development costs are lower, and at the
same time improves its performance so that more doctors are willing to
prescribe it, it may well be the case that you don’t need to have such
huge drug sales to still have a very profitable product, particularly if
the treatment commands a premium price.”
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Pharmacogenomics Business Models" Click the title to purchase "Successful
Pharmacogenomics Business Models"
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