TRENDS & PERSPECTIVES
By analyzing the function of clinical diagnostics, Kalorama Information produced a market research report exploring the potential benefits and challenges of companion diagnostics. In the study, “The Market for Companion Diagnostics: A Realistic Assessment of the Opportunities, Challenges, Key Players, and Noteworthy Trends in Personalized Medicine,” clinical observations of the IVD industry exposed treatment options for therapeutic intervention for disease diagnosis for the next 10 years.
According to the report, the companion diagnostics market is expected to grow from $27 million to $130 million by 2018. Although the estimates are financially conservative, the figures project seven-year horizons for each companion IVD product. Thanks to the Human Genome Project, each biomarker discovery increases the viability of companion IVDs paired with therapeutic treatment.
The study’s conclusions are based on the limited history of the companion IVDs market, but companion IVDs developed under the therapeutic intervention paradigm system are expected to appear on the market in 2015. The number of companies developing companion IVDs is expected to increase over the next few years, but then decrease as some IVD manufacturers clash with pharmaceutical firms that may restrict access to proprietary genetic data.
Despite increasing public attention and investment interest, research revealed that companion IVDs for personalized medicine applications face several challenges in the U.S. healthcare finance system. Business models that emphasize “one-size-fits-all” drugs may fail to accept the economic rationale for personalized medicine in healthcare decisions.
The report’s analysis reveals the success of companion diagnostics is dependent on the progress of specific types of drug development. Researchers also recommend IVD companies seek royalties on sales generated by therapeutics based on the companion IVDs developed. If adopted throughout the industry, the strategy could increase the revenue estimates in this report several times.
Additional information about this market report can be accessed at Kalorama Information’s Web site at www.kaloramainformation.com.
