The global precision medicine market in terms of revenue was estimated to be worth $29.1 billion in 2023 and is poised to reach $50.2 billion by 2028, growing at a CAGR of 11.5% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. Growth in the precision medicine industry is Currently the focus on genomic research is growing continuously. Is mainly due to the realisation of the potential that genetic targeted therapies hold. This is facilitating increasing adoption of precision medicine. Additionally, genetic testing add companion diagnostics are also witnessing growth. These factors along with the increasing approvals for personalised medicines from prominent regulatory bodies are supporting the growth of this market.
Precision Medicine Market Dynamics
DRIVER: Growth in genetic testing and companion diagnostics
Precision medicine regimen is recommended only after a series of diagnostic tests to study the patient’s genes for individual variability, genetic mutations, variations. Additionally, therapeutics involves the administration of suitable therapy/drug regime to the patient based on genetic testing results. Genetic testing is observing growth due to factors such as availability of tests for cancer screening, pre-natal screening, and the availability of direct-to-consumer testing (DTC) as well. Moreover, genetic testing plays a crucial role in the development of companion diagnostics. Companion diagnostics (CDx) are medical tests that are designed to identify patients who are most likely to benefit from a specific therapeutic treatment. These tests allow selection individualized treatment supporting the growth of precision medicine adoption.
RESTRAINT: High costs of therapeutics
Precision medicine therapeutics are administered after a detailed analysis of the patient’s genetic makeup using diagnostic genetic tests. Therefore, the overall cost of the precision medicine regimen is substantially high. Thus, for individuals with financial problems or geographic regions where the healthcare infrastructure is not adequately built to support such treatments, precision medicine access is constrained. For instance, the price of TECARTUS CAR T-cell therapy from Novartis AG approved as a personalized medicine ranges between USD 300,000 to USD 400,000; the price of AMVUTTRA (vutrisiran) approved as personalized medicine ranges between USD 85,000 to USD 115,000 in the US (Source: US Department of Veteran Affairs). However, in the coming years, the charges of personalized medicines are expected to reduce owing to efforts by key players to offer therapies at lower price, increasing support by regulatory bodies as well as healthcare providers for increasing adoptiong among others, thereby leading to wider adoption.
OPPORTUNITY: Growing demand for cell and gene therapies
Recently, the innovations add demand for cell and gene therapies has been growing. This is due to the fact that’s cell and gene therapies hold significant potential to address several areas In different indications for which yet an effective treatment is unavailable. These indications mainly include chronic diseases in specialties such as oncology, rare genetic disorders, genetic disorders, other rare diseases among others. This is as an area of opportunity by pharmaceutical and biotechnology companies to invest into development and commercialization of novel cell and gene therapies. Besides, cell and gene therapies give a targeted therapeutic effect. Due to this they have been largely approved as personalised medicine as well. In 2022, the FDA approved 5 cell and gene therapies as personalised medicines. Thus, growing demand for cell and gene tehrapies owing to the benefits that they offer significant opportunity area for precision medicine.
CHALLENGE: Challenges associated with adoption of precision medicine
The precision medicine therapeutics adoption is increasing. However, there are some factors Challenging the growth of this market. Reimbursement and financing policies is one of the challenges faced by this market especially in the developing regions such as the Asia Pacific Latin America, the Middle East and Africa. Reimbursement for these therapeutics is complex there are limited number of patients opting precision or personalised medicine. Besides, the cost of precision medicine regimen is high and the uncertainty of reimbursement can discourage patients from opting for precision medicine treatment.
North America was the largest market for overall precision medicine industry in 2022 and also during the forecast period.
Geographically, the precision medicine market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa. The market was dominated by North America in 2022 and this dominance is anticipated to continue throughout the forecast period between 2023 and 2028. The market for precision medicine is expanding in the region as a result of factors like availability of advanced technologies including diagnostics required for precision medicine, presence of highly advanced infrastructure in hospitals among others.
The prominent players in the precision medicine market:
- Hoffmann-La Roche Ltd. (Switzerland)
- Novartis AG (Switzerland)
- Pfizer Inc. (US)
- Bristol Myers Squibb (US)
- AstraZeneca (UK)
- Gilead Sciences, Inc. (US)
- AbbVie Inc. (US)
- Eli Lilly and Company (US)
Recent Developments of Precision Medicine Industry
- In February 2023, Roche received EC approval for expansion of the Hemlibra (emicizumab) European Union (EU) marketing authorization.
- In January 2022, AstraZeneca (UK) collaborated with Scorpion Therapeutics to develop and commercialize precision medicines against hard-to-target cancer proteins, with an aim to transform oncology treatment. The size of this deal accounted for USD 75 billion.
conclusion
The precision medicine market is poised for continued expansion, transforming healthcare by offering more effective and customized treatment strategies. As technology advances and barriers are addressed, precision medicine is likely to become an integral part of mainstream healthcare, improving patient outcomes and overall healthcare efficiency.