Financial analysts have good reason to anticipate the continued growth of personalized medicine. Not only is it affecting patients and physicians but it holds plenty of promise for the pharma industry.
General Strategic Development Benefits
Personalized medicine encourages more vertical collaboration throughout the industry. It is therefore in the best interest of pharma companies to work more closely with payers, other development companies and even patients when developing personalized medicine products. This clears the path for increased synergy, the ability to split costs with other businesses, and other various advantages that open up thanks to new technology. The key, as always, is enabling shareholders to understand these opportunities.
More Options for Mergers and Ventures
Let’s also point out a more specific advantage when it comes to strategic development—greater possibility for mergers and joint ventures. These opportunities allow financial analysts to examine a greater range of opportunities for project funding and provide a fertile bed for data on the synergies that such ventures are offering throughout the industry. In other words, industry news reports are about to get much more interesting.
Proof of Utility
Here’s an advantage that shareholders can get behind—in personalized medicine, drugs can be developed with inherent proof of utility. Thanks to wider testing and more usable mapping, it is becoming much easier to say ‘this drug can affect this condition and will be able to be used by this many patients’. There’s far less danger of carrying a drug to market only to find it less effective than envisaged.
Accurate Revenue Projections for New Drugs
Along with proof of utility, new drug development strategies that involve personalized medicine also allow for more accurate revenue projections. When treatment, efficacy and available patients are all so clearly defined, it becomes easier to control costs and estimate revenue for a particular product. Insurance companies are also fans of the predictability of personalized medicine, which can make drugs more viable on the market.
Advanced Targeting Methods
When you have a clear window revealing which patients will benefit from new products, as well as tests that help ensure the efficacy of drugs, targeting specific drugs for specific patients becomes much easier. This is, of course, a boon when it comes to marketing campaigns but it also helps create a faster, more nimble targeting method that has benefits throughout the commercialization process.
Reduced Costs for Payers
Payers also tend to be big fans of personalized medicine for the savings that it can provide them. Targeting drugs with a very high rate of efficacy means that fewer tests and ‘failed’ treatments need to be used beforehand. That equals savings per patient, which is good news to all ears.
Revenue Potential for New Systems of Treatment
There is still uncertainty when it comes to predicting how genetic profiling and sequencing will impact health care practices. It seems likely that at least a few new systems of diagnosis and treatment will be developed. That’s a whole lot of potential for analysts to study, predict, improve and apply, which means more jobs for analysts as a whole…and more revenue potential when it comes to leveraging technology.