Biotech Values

[quantumdot]

. That's been the big drawback to personalized medicine from the drugmaker standpoint. Why give up XX% of the market when we can just overpower our trials to make up the difference.

Precisely. But as biotechs (big and small) advance many more candidates through trials that target niche patient populations we will see the market fragment. Big Pharma may resist with their own programs but to grow they will, out of necessity, be acquiring pipelines from the bios and often these will be candidates that have progressed into the clinic with a companion diagnostic. As these truly targeted therapies become increasingly common and the markers and asociated diagnostics become more accurate and reliable I think you will see the partnerships and the associated repricing of the diagnostic tests themselves and potentially even the revenue splitting you hypothesize (although given the margins of your average IVD company versus Pharma this would seem a little unfair!)