Navigation Links
Adoption of Personalized Medicine May Yield Significant ROI; Time to Achieve Benefit Varies Among U.S. Health Care Stakeholders, According to Deloitte Report

Greatest ROI Opportunity for Consumers in Shortest Period of Time

WASHINGTON, Jan. 27 /PRNewswire/ -- As the new administration examines the potential investment in targeted therapies that utilize personalized medicine to improve patient care, a new report released today by the Deloitte Center for Health Solutions found significant opportunities for the adoption of personalized medicine to produce a positive return on investment across key stakeholders in the U.S. health care system. The report, released today at the Personalized Medicine Coalition conference, "Achieving ROI in Personalized Medicine: Barriers, Incentives and Pathways to Successful Commercialization," also found that consumers stand to gain the most significant ROI opportunity within the shortest time period.


"Personalized medicine is not a promise of the future; it is fast emerging as the current state in diagnostics and therapeutics," said Terry Hisey, vice chairman and U.S. industry leader for Deloitte LLP's Life Sciences industry group. "The U.S. health care system will confront an array of challenges to expedite development to make personalized medicine a reality. Our report examines opportunities to overcome these obstacles, from access to capital to stimulate increased R&D to how to justify coverage by health plans often pressured for short-term savings."

Assessing the barriers and incentives for advancing the adoption of personalized medicine, the Deloitte report, "The ROI for Targeted Therapies: A Strategic Perspective," provides an analysis of personalized medicine's economic value proposition. It examines the importance of ROI for multiple stakeholders -- consumers, diagnostic companies, pharmaceutical and biotechnology companies and payors.

Deloitte developed a framework that factored in the ROI for personalized medicine by examining case studies categorized by two scenarios -- altering the course of therapy or introducing a companion therapy -- across a number of clinical conditions, ranging from HIV/AIDS to breast cancer. The results of the analysis found that the ROI and time to yield benefit varied by scenario across each stakeholder group.

According to the report:

  • The literature review of two clinical scenarios found that all stakeholder groups experienced a positive ROI under certain conditions.
  • Consumers consistently experienced a positive ROI across all scenarios.
  • Payors received only a marginal benefit, and that was after six years.

"Personalized medicine facilitates better care and lower costs, and has the potential to benefit every major stakeholder in the U.S. system -- most importantly, its patients," added Paul Keckley, Ph.D., executive director of the Deloitte Center for Health Solutions.

Highlights of key stakeholder implications found in the report include:

  • Consumers stand to gain the greatest ROI from personalized medicine, often within the first year. However, upfront costs will likely be required because these therapies may be more expensive than conventional treatments. Long-term benefits of personalized medicine create an incentive for adoption, although education will also be critical to help consumers make informed care decisions.

  • Providers will benefit from the new tools offered by personalized medicine to improve patient care; however, reimbursement issues will need to be worked out with payors. Additionally, as providers implement electronic health records, new decision-support tools will help facilitate the adoption of disease-specific standards of practice that can provide real-time data to help prioritize therapies based on potential drug interactions and patient clinical profiles.

  • Payors may want to factor in personalized medicine products into the equation as the employer-sponsored model evolves into a retail health insurance model, providing the opportunity to include customized products. Plans may also benefit as personalized medicine may help slow the advancement of conditions and diseases that, left untreated, result in more expensive acute care interventions and institutional care. Additionally, they may also desire government subsidies, premium tax reductions and abatements to make coverage of personalized medicine more profitable.

  • Policy makers will need to consider incentives for commercial health plans to adopt personalized medicine by leading by example (for example, reimbursing these technologies). They can also consider leveraging the connection between personalized medicine with the Orphan Drug Act, as well as supporting R&D tax credits (or other strategies) for the biotech/pharma industry to encourage its personalized medicine development efforts.

  • Biotech/Pharmaceutical and diagnostic companies may need to consider more virtual R&D to address smaller markets with more targeted therapies to reduce R&D expenditures, as well as collaborate with affiliates, such as academic medical centers and research organizations. The continued trend toward M&A and partnerships may also pick up as personalized diagnostic companies may become prime investments or acquisition targets. New strategies to integrate marketing, sales and distribution with companion diagnostics will need to be considered to improve the cost effectiveness of these activities.

Related Resources:

Profile: Paul Keckley, Ph.D. (

Full Report: The ROI for Targeted Therapies: A Strategic Perspective (

About Deloitte

As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

About the Deloitte Center for Health Solutions

The Deloitte Center for Health Solutions is a part of Deloitte LLP. For more on the Center and its work, see

SOURCE Deloitte
Copyright©2009 PR Newswire.
All rights reserved

Related biology technology :

1. Adoption of Spinal Nonfusion Technologies Doubled in One Year
2. IC Sciences Launches ICS Alliance to Advance Development and Adoption of Informatics Instruments for Next Generation Healthcare
3. Novo Nordisk Applauds Adoption of World Diabetes Day Resolutions by U.S. Congress
4. YM Biosciences announces adoption of renewed Shareholders Rights Plan
5. MDV Expands Team Pursuing Advances in Personalized Medicine
6. Connecticut State Medical Society and Genomas Co-Sponsor Forum on DNA-Guided Medicine and the Path to Personalized Health Care
7. As personalized, genomic medicine takes off, four developing countries show the way for others
8. OSU to Host National Personalized Health Care Conference
9. US Oncology Appoints Stephen Smith Vice President/General Manager Research and Personalized Science Services
10. MammaPrint(R) Breast Cancer Test Provides Valuable Insight for Personalized Treatment Decisions
11. Former CMS Administrator: "Blunt Instrument Policies an Increasingly Bad Fit in Era of Personalized Health Care"
Post Your Comments:
(Date:11/25/2015)... 2 nouvelles études permettent d , ... les souches bactériennes retrouvées dans la plaque dentaire ... . Ces recherches  ouvrent une nouvelle voie ... de l,un des problèmes de santé les plus ... --> 2 nouvelles études permettent d , ...
(Date:11/25/2015)... ANGELES and HOLLISTON, Mass. ... Technology, Inc. (Nasdaq: HART ), a biotechnology company ... that CEO Jim McGorry will present at ... December 1, 2015 at 2:30 p.m. PT. The presentation ... below) for 30 days. Management will also be available ...
(Date:11/25/2015)... , Nov. 25, 2015 /PRNewswire/ - Aeterna Zentaris Inc. ... its business and prospects remain fundamentally strong and ... (zoptarelin doxorubicin) recently received DSMB recommendation to continue ... following review of the final interim efficacy and ... Primary Endpoint in men with heavily pretreated castration- ...
(Date:11/25/2015)... -- Orexigen® Therapeutics, Inc. (Nasdaq: OREX ) today ... discussion at the Piper Jaffray 27th Annual Healthcare Conference ... is scheduled for Wednesday, December 2, at 8:00 a.m. ... will be available for 14 days after the event.  ... Corporate Communications and Business Development , BrewLife(858) 875-8629 ...
Breaking Biology Technology:
(Date:11/11/2015)... 2015   MedNet Solutions , an innovative SaaS-based eClinical ... is pleased to announce that it will be a Sponsor ... event, to be held November 17-19 in Hamburg ... demonstrations of iMedNet , MedNet,s easy-to-use, proven ... has been able to deliver time and cost savings ...
(Date:11/10/2015)... Nov. 10, 2015 About ... that helps to identify and verify the identity ... considered as the secure and accurate method of ... a particular individual because each individual,s signature is ... especially when dynamic signature of an individual is ...
(Date:11/9/2015)... Calif. , Nov. 9, 2015  Synaptics Inc. ... interface solutions, today announced broader entry into the automotive ... solutions that match the pace of consumer electronics human ... biometric sensors are ideal for the automotive industry and ... Europe , ...
Breaking Biology News(10 mins):