Developments in personalized medicine, customized treatments that rely on diagnostic tools, could dramatically improve care for patients, and reduce costs for providers and payers. While the promise of this technology remains significant, particularly for cancer patients, its adoption has been slow as stakeholders grapple with financial and regulatory questions.
Personalized medicine generated 4% of pharmaceutical revenues in 2010. However, that rate could climb to 20% if companies devise stronger business models that could make the treatments a clinical mainstay.
Getting there may require major investments and more collaboration among pharmaceutical companies. But the results could lead to better outcomes for patients and new opportunities for the healthcare industry.