Singapore, Dec 9, 2009: The market for personalized medicine in the United States is already $232 billion, and it is projected to grow 11 percent annually, according to a new report published by PricewaterhouseCoopers, entitled 'The Science of Personalized Medicine: Translating the Promise into Practice'.

 

Personalized medicine, which targets individualized treatment and care based on personal and genetic variation, is creating a booming market, but it is a disruptive innovation that PricewaterhouseCoopers says will create both opportunities and challenges for traditional healthcare and emerging market participants.

 

PricewaterhouseCoopers projects that the market for a more personalized approach to health and wellness will grow to as much as $452 billion by 2015. Its estimates are based on a broad view of the market opportunity beyond drugs and devices to also include demand for high-tech storage and data-sharing as well as low-tech products and services aimed at consumers' heightened awareness of their own health risks.

 

According to the report: The core diagnostic and therapeutic segment of the market – comprised primarily of pharmaceutical, medical device and diagnostics companies - is estimated at $24 billion and is expected to grow by 10 percent annually, reaching $42 billion by 2015. The personalized medical care portion of the market – including telemedicine, health information technology and disease management services offered by traditional health and technology companies – is estimated at $4 billion to $12 billion and could grow tenfold to over $100 billion by 2015 if telemedicine takes off. The related nutrition and wellness market - including retail, complementary and alternative medicine offered by consumer products, food and beverage, leisure and retail companies - is estimated at $196 billion and is projected to grow 7 percent annually to over $290 billion by 2015.

"Medical science and technological advancement have converged with the growing emphasis on health, wellness and prevention sweeping the country to push personalized medicine to a tipping point. We are now seeing a blurring of the lines between traditional healthcare offerings and consumer-oriented wellness products and services. The market potential is enormous for any company that learns to leverage the science, target individuals and develop products and services that promote health," said Mr David M Levy, global healthcare leader, PWC.

 

Consumer demand for personalized care is creating new opportunities for market participants, for example: The direct-to-consumer (DTC) diagnostic market is growing and controversial. Genetic testing products for in-home use are empowering consumers with real-time information, enabling them to predict their medical risks, detect disease earlier and better manage their health status. Market research analysts estimate the current size of the global market for genetic testing at $730 million, with a 20 percent annual growth rate. Though a relatively small portion of this market, DTC testing is expected to grow rapidly in response to consumer demands and declining prices.

 

 

The growth of personalized medicine will change the role of traditional healthcare organizations and create new challenges. Most notably, it is one of the market forces driving the changing business model of Big Pharma away from the blockbuster drug model to a more collaborative model focused on outcomes and specialized therapies.

Primary care providers may have to build new service lines around prevention and wellness in order to replace revenues lost from traditional medical procedures. When they do, they can expect to face low-cost competition from non-healthcare companies skilled in consumer marketing and consumers armed with knowledge of their options. In addition, physicians will need training in genomics and proteomics in order to stay relevant in the area of personalized medicine. To educate the next generation of physicians and nurses in the complex issues raised by genomic and proteomic science, universities will have to update their programs.