Oncology Companion Diagnostics Sector Grows to Over USD 1 Billion

The market for diagnostic test and pharmaceutical drug pairs for cancer treatment has grown significantly, according to the report “Companion Diagnostic Markets” from healthcare market research firm Kalorama Information (New York City, NY, USA). The global companion diagnostics (CDx) market is valued at about USD 1.14 billion for 2013, up from USD 910 million the previous year.

Kalorama noted that cancer CDx is an area increasingly focused on personalized approaches. “Novel biomarkers and subsequent companion diagnostics have the potential to transform the cancer treatment model from a one-size-fits-all approach to a personalized approach,” said report author Mary Ann Crandall. CDx increase the probability of clinical success by selectively identifying patients with the presence of biomarkers or disease-specific therapeutic targets that can dramatically improve outcomes by determining which patients will respond well to therapy. CDx can also decrease costs – not only by identifying the patient population most likely benefit from the therapy but also by ruling out therapies not likely to be effective.

“In the past, each individual company would develop its own product, many times at great risk and expense,” said Ms. Crandall, “In many cases, it was viewed by industry participants as too risky to devote resources towards the development of a test that may never be used.”

The growing interest in CDx is fueling many novel partnerships between big pharma and diagnostic companies, such that co-development deals have taken center stage. In 2010 there were approximately 25 big pharma and diagnostic deals, up from 19 in 2009 and only 7 in 2008. That number has increased to over 50 since 2011 with oncology as the primary area of companion diagnostic licensing and/or partnership deals in recent years. The majority of partnerships have been with established diagnostic players such as Roche and Abbott, but there seems to be a recent shift toward specialized diagnostic companies, as seen in the Eli Lilly and PrimeraDx partnership. Most partnerships have been exclusive for a limited time period, providing stability for the diagnostic company and assuring it will be the first to market with its diagnostic, justifying the investment.

The Kalorama report has also identified the best disease markets for CDx approaches.

Related Links:
Kalorama Information 
Companion Diagnostic Markets report