Where is the ROI for Targeted Therapies?
Assessing the barriers and incentives for adopting personalized medicine
Personalized medicine is the application of new methods of genetic analysis to diagnose, treat and manage disease – or predisposition of disease – on an individual basis. It has the power to transform health care within the foreseeable future from a population-based model to a subpopulation and individual model and is already having a disruptive impact on the U.S. health care system.
To help increase government and industry awareness of what could be one of this century’s most transformative changes in medicine, it is imperative to examine the incentives for and barriers to investing in and paying for personalized medicine.
"The ROI for Targeted Therapies: A Strategic Perspective," a study produced by the Deloitte Center for Health Solutions, part of Deloitte LLP, addresses the following research questions:
- Does personalized medicine have a quantifiable ROI?
- Can an economic framework be derived from case studies that will demonstrate differences in ROI across industry stakeholders?
Deloitte developed a framework for calculating personalized medicine’s ROI by examining case studies categorized by two scenarios – altering a standard course of therapy or introducing a companion therapy – across a number of clinical conditions, ranging from HIV/AIDS to breast cancer. The study calculates the ROI for four key stakeholder groups: consumers, payors, biotechnology/pharmaceutical companies and diagnostic companies.
Through the use of the two clinical scenarios, the study found that all stakeholder groups experienced a positive ROI under certain conditions, although payors received only a marginal benefit and that is after six years. Consumers stood to gain the most significant ROI opportunity within the shortest time period.
This report was released at the Personalized Medicine Coalition conference, “Achieving ROI in Personalized Medicine: Barriers, Incentives and Pathways to Successful Commercialization,” on January 27, 2009 in Washington D.C.
To read the complete study, "The ROI of Targeted Therapies: A Strategic Perspective," please download the PDF attachment at the bottom of the page.
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