Re-posted from the Cross-Border Biotech Blog
A report in FierceBiotech recently distilled the views of three life science VCs on trends to watch in 2010. Along with other worthwhile observations (and I’d encourage you to read the whole thing) was this bullet pointing out the value of personalized medicine in addressing comparative effectiveness concerns:
“Interest in molecular diagnostics is heating up. It’s one of the most attractive areas because physicians are increasingly demanding test that can tell them which treatments have the best chance of working before expensive medicines are issued. And diagnostics fit well with the healthcare reform efforts. Bloch adds that any technology that improves the efficacy of how care is delivered will be attractive to investors.”
The business case is eminently obvious. Last week AstraZeneca announced a collaboration with Dako Denmark A/S that will see Dako developing companion diagnostics for products in AstraZeneca’s oncology pipeline. Key quotes from the announcement highlight the companies’ focus on “health care costs” and “reimbursable products”:
“Targeted treatment with personalized medicine is the future, and … is also a significant contributive factor in cutting health care costs” (Dako CEO)
“This agreement … will enable us to develop novel, reimbursable products that … predict which patients are most likely to respond to treatment, ensuring that we are giving the right treatment, to the right patient, the first time.” (AZ Head of Oncology Development)
The economic case for personalized medicine was one of this blog’s top biotech trends in 2009 and it looks to continue at a strong pace through 2010. To reach its full potential, though, the industry will have to convince policy makers and clinicians that personalized medicine can live up to its promise.
Jeremy Grushcow is a Foreign Legal Consultant practising corporate law at Ogilvy Renault LLP. He has a Ph.D. in Molecular Genetics and Cell Biology. His practice focuses on life science and technology companies.