Industry Perspective: Personalized Medicine
Is your area thinking about the impacts of personalized medicine on
its economic base?
Personalized medicine is a concept promoted as a new paradigm for
health care delivery, with particular emphasis on more tightly linking
genomics-based diagnostics and therapeutics. Previous analyses focused
on the pharmaceutical market; this analysis also addresses the
incentives to develop linked genomics-based diagnostics and the
broader public policy implications.
Using a standard economic framework of an insurer-payer negotiating
reimbursement with manufacturers of an innovative, targeted diagnostic
and a companion patented therapeutic, several illustrative
hypothetical scenarios are developed. The relative importance of the
key economic factors is examined, including whether the reimbursement
system is value or cost based, whether the therapeutic is already
marketed, the strength of diagnostic intellectual property, and a
current year versus longer time frame.
The results suggest that health systems reforms that promote
value-based, flexible reimbursement for innovative, patent-protected
diagnostic and therapeutic products are critical to create stronger
economic incentives for the development of personalized medicine.
Source: Drug Information Journal. Ambler: 2007. Vol. 41, Iss. 4; pg.
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