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Adoption of Personalized Medicine May Yield Significant ROI; Time to Achieve Benefit Varies Among U.S. Health Care Stakeholders, According to Deloitte Report
Date:1/27/2009

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.

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SOURCE Deloitte
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