Tuesday, 19 February 2008

industry perspective personalized



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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