The decline in the cost of the second-generation gene sequencer has led to the commercialization of the gene sequencing industry, but it has only given birth to the maturity of the non-invasive pre-testing market. The next step in the development of precision medicine focuses on the screening and treatment of cancer. Although the technology has made breakthroughs in some areas, the large-scale commercialization capability is not yet available. Precision medicine has been actively supported by industrial companies and the government, investing a large amount of money to promote the development of this field, but because of the immature technology in many aspects, how is the commercialization ability? Where are the mature investment points that may develop in the future? How is risk controlled?
Latitude Health will officially launch the "Precision Medical Commercialization Challenge" report at the end of May to analyze in detail the problems faced by precision medicine and industry opportunities to help investors make more informed decisions. This report is an exclusive report of LH Insights members and is not available for public sale.
From the current stage of the United States, precision medicine is still accumulating data, information and experience to find the stage of the method for clinical application. The trend of pharmaceutical companies in precision medicine is mainly precision cancer treatment. Specific research and practice include targeted therapy with biomarkers, new drug development, and genetic editing and tumor immunotherapy at an early stage.
In the upstream equipment and product areas of gene sequencing, the market is concentrated in the hands of Illumina and Life Technologies, and this technology monopoly trend is difficult to break in the short term. In the short-term, the second-generation technology is the most favorable for commercialization, both in terms of cost and sales channels. This means that upstream equipment manufacturers will have a strong say in the mid-stream testing service providers. Upstream companies will also have advantages in the midstream service sector and in peripheral products such as software and databases.
The biggest feature of the midstream genetic testing industry is the high income uncertainty. Non-invasive prenatal screening has driven the rapid development of gene sequencing services, but the subsequent growth potential is still unknown. With the increase in sales costs caused by the establishment of hospital channels and the difficulty of reimbursement of related items by the payers, it is also a big uncertainty whether the gross profit rate of genetic testing can be kept high.
At the same time, the key issue facing the field of oncology drug development in the field of precision is that the more accurate, the more costly it is, and the adaptation of the population cannot be promoted in large quantities. The presentation is characterized by different drugs mainly treating a particular type of tumor or a certain type of person, which means a large amount of R&D investment and a small scope of use, and the cost will be high. So how to accept it by commercial and paid parties is the biggest challenge.
However, the gene service company for C-side can not give valid scientific proof in accuracy and clinical significance, and the risk of being able to be a disease prompt in the supervision, from 23ndme FDA stop, as a clinical application safety Sex and accuracy have yet to be scientifically justified. For C-side companies, because of the lack of professionalism of genetic services, it will be difficult to transform to provide services at the B-end. In the short-term, the C-end model will not see a suitable profit direction, and even if it is regulated, it will be extremely risky.
In summary, precision medicine is still at an early stage. The better commercialization of services is non-invasive prenatal genetic testing. Other fields need to rely on scientific development and proof of clinical effectiveness. This development path means Large capital investment, the final output is extremely uncertain. Accurate medical care therefore requires both social capital and national input support, and can withstand the two characteristics of long return period and high risk. In addition, after the scientific practice is proved, precision medicine may face difficulties in adapting to the crowd because it is too small and the cost cannot be reduced.
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