Growing European Market for Biochips

Poor reimbursement and budgetary restrictions are dampening the adoption of chip-based diagnostic kits in Europe. However, targeting disease applications and proving clinical utility coupled with multi-parameter testing will encourage wider acceptance, according to a new report from Frost & Sullivan (Palo Alto, CA, USA), a global consulting company.

Pharmacogenetics has altered the dynamics of the diagnostics market by ushering in the concept of personalized medicine, whereby genomic technology individualizes treatments by revealing genetic inheritance that affects drug response in people. Phenotypic diagnosis is aiding biochip applications, since morphologic features are used to determine disease prognosis. Identifying specific markers for diseases such as cancer and Alzheimer's will boost the impetus to implant chip technology in clinics.

A key obstacle is the need to obtain statistically relevant readouts, creating a need for systems capable of providing consistent results in clinical research. Multi-parameter testing and miniaturization of chip technology are driving the uptake of chip technology, by offering the ability to identify and prioritize drug targets.

Supported by these trends, the U.S.$14.1 million European market for biochips in clinical research is forecast to grow to $65.6 million by 2011. A key issue confronting both vendors and researchers is the high cost of chip-based solutions. Also, there is limited reimbursement and hospitals are cautious about investing in chip-based diagnostic kits.

"Therefore, companies need to work with government-funding bodies and regulatory bodies to make biochips more affordable and ensure their successful commercialization,” observed Charanya Ramachandran, a research analyst with Frost & Sullivan.






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