Biotech Values

[quantumdot]

"Everyone knows personalized medicine is coming, but the fundamentals of the non-druggies don't add up to me. "

It depends where you sit in the scheme of things. For the innovators in companion diagnostics I think the healthcare system out of necessity will have to "revalue" these tests. A $30 test that could prevent a pointless $100K course of some oncology drug should capture more of the value it saves the system. These tests could easily be valued at $3,000 and I think they will be. Pharma won't want to lose focus on their drug development core competence so rather than developing companion diagnostics internally for their targeted therapies we will see more partnerships between BP and the diagnostics players (spanning a wide range of markers).

It may take a while as there is still a large financial incentive for BP to market one-size-fits-all drugs but the payers and regulators won't let that continue as the system simply can't support it. The smart ones like NVS and DNA know this.