Precision Medicine Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global precision medicine market growth forecasted to transform from $29.1 billion in 2023 to $50.2 billion by 2028, driven by a CAGR of 11.5%. Growth in the precision medicine industry is Currently the focus on genomic research is growing continuously. Is mainly due to the realisation of the potential that genetic targeted therapies hold. This is facilitating increasing adoption of precision medicine. Additionally, genetic testing add companion diagnostics are also witnessing growth. These factors along with the increasing approvals for personalised medicines from prominent regulatory bodies are supporting the growth of this market.

Attractive Opportunities in the Precision Medicine market

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Precision Medicine Market Dynamics

DRIVER: Growth in genetic testing and companion diagnostics

Precision medicine regimen is recommended only after a series of diagnostic tests to study the patient’s genes for individual variability, genetic mutations, variations. Additionally, therapeutics involves the administration of suitable therapy/drug regime to the patient based on genetic testing results. Genetic testing is observing growth due to factors such as availability of tests for cancer screening, pre-natal screening, and the availability of direct-to-consumer testing (DTC)  as well. Moreover, genetic testing plays a crucial role in the development of companion diagnostics. Companion diagnostics (CDx) are medical tests that are designed to identify patients who are most likely to benefit from a specific therapeutic treatment. These tests allow selection individualized treatment supporting the growth of precision medicine adoption.

RESTRAINT: High costs of therapeutics

Precision medicine therapeutics are administered after a detailed analysis of the patient’s genetic makeup using diagnostic genetic tests. Therefore, the overall cost of the precision medicine regimen is substantially high. Thus, for individuals with financial problems or geographic regions where the healthcare infrastructure is not adequately built to support such treatments, precision medicine access is constrained. For instance, the price of TECARTUS CAR T-cell therapy from Novartis AG approved as a personalized medicine ranges between USD 300,000 to USD 400,000; the price of AMVUTTRA (vutrisiran) approved as personalized medicine ranges between USD 85,000 to USD 115,000 in the US (Source: US Department of Veteran Affairs). However, in the coming years, the charges of personalized medicines are expected to reduce owing to efforts by key players to offer therapies at lower price, increasing support by regulatory bodies as well as healthcare providers for increasing adoptiong among others, thereby leading to wider adoption.

OPPORTUNITY: Growing demand for cell and gene therapies

Recently, the innovations add demand for cell and gene therapies has been growing. This is due to the fact that's cell and gene therapies hold significant potential to address several areas In different indications for which yet an effective treatment is unavailable. These indications mainly include chronic diseases in specialties such as oncology, rare genetic disorders, genetic disorders, other rare diseases among others. This is as an area of opportunity by pharmaceutical and biotechnology companies to invest into development and commercialization of novel cell and gene therapies. Besides, cell and gene therapies give a targeted therapeutic effect. Due to this they have been largely approved as personalised medicine as well. In 2022, the FDA approved 5 cell and gene therapies as personalised medicines. Thus, growing demand for cell and gene tehrapies owing to the benefits that they offer significant opportunity area for precision medicine.

CHALLENGE: Challenges associated with adoption of precision medicine

The precision medicine therapeutics adoption is increasing. However, there are some factors Challenging the growth of this market. Reimbursement and financing policies is one of the challenges faced by this market especially in the developing regions such as the Asia Pacific Latin America, the Middle East and Africa. Reimbursement for these therapeutics is complex there are limited number of patients opting precision or personalised medicine. Besides, the cost of precision medicine regimen is high and the uncertainty of reimbursement can discourage patients from opting for precision medicine treatment.

Precision Medicine Market Ecosystem

Prominent companies in the market includes companies operating in the market for several years and posess diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in the market include F. Hoffmann-La Roche Ltd. (Switzerland), Novartis AG (Switzerland), Pfizer Inc. (US), Bristol Myers Squibb (US), AstraZeneca (UK), Gilead Sciences, Inc. (US), AbbVie Inc. (US), Eli Lilly and Company (US), GlaxoSmithKline plc (UK), Sanofi (France), Johnson & Johnson (US), Merck KGaA (Germany), Amgen, Inc. (US) among others.

The inhibitor drugs accounted for the largest share of the type segment in overall precision medicine industry in 2023.

Based on type, the precision medicine market is segmented into inhibitor drugs, monoclonal, cell & gene therapy, antiviral & antiretroviral drugs, and other therapeutic products. In 2022, the inhibitor drugs segment accounted for the largest share of the market owing to factors including observed better effectiveness of inhibitor drugs, large number of commercially approved drugs. Besides, inhibitor drugs cover significant indications such as oncology, rare diseases among others.

The oncology segment dominated the indication segment in overall precision medicine industry in 2023.

Based on indication, the precision medicine market is segmented into oncology, rare diseases, infectious diseases, hematological disorders and other indications. Oncology accounted for the largest share of the market owing to factors such as increasing number of approvals for oncology therapeutics to be administered as personalized or precision medicines,  increasing burden of various types of cancers globlly and thus, arising need for targeted or precision therapies among others.

North America was the largest market for overall precision medicine industry in 2022 and also during the forecast period.

Geographically, the precision medicine market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa. The market was dominated by North America in 2022 and this dominance is anticipated to continue throughout the forecast period between 2023 and 2028. The market for precision medicine is expanding in the region as a result of factors like availability of advanced technologies including diagnostics required for precision medicine, presence of highly advanced infrastructure in hospitals among others.

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The prominent players in the precision medicine market are Hoffmann-La Roche Ltd. (Switzerland), Novartis AG (Switzerland), Pfizer Inc. (US), Bristol Myers Squibb (US), AstraZeneca (UK), Gilead Sciences, Inc. (US), AbbVie Inc. (US), Eli Lilly and Company (US), GlaxoSmithKline plc (UK), Sanofi (France), Johnson & Johnson (US), Merck KGaA (Germany), Amgen, Inc. (US) among others.

Scope of the Precision Medicine Industry:

This report categorizes the Precision Medicine Market to forecast revenue and analyze trends in each of the following submarkets:

By Type

• Inhibitor drugs
• Monoclonal Antibodies
• Cell & Gene Therapy
• Antiviral & Anti-retroviral drugs
• Other Therapeutic Products   

By Indication

• Oncology
• Rare Diseases
• Infectious diseases
• Hematological disorders
• Other indications

By End User

• Hospitals and Clinics
• Home care settings

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia Pacific (RoAPAC)
• Latin America
• Middle East
• Africa

Recent Developments of Precision Medicine Industry

• In February 2023, Roche received EC approval for expansion of the Hemlibra (emicizumab) European Union (EU) marketing authorization.
• In January 2022, AstraZeneca (UK) collaborated with Scorpion Therapeutics to develop and commercialize precision medicines against hard-to-target cancer proteins, with an aim to transform oncology treatment. The size of this deal accounted for USD 75 billion.

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