The global precision medicine market is expected to reach close to USD 40 billion by the end of 2016, gradually growing at an estimated CAGR of 10.3% by 2021. Precision medicine is an emerging approach for disease treatment and prevention that takes into account individual variability in genes, environment, and lifestyle for each person. It is a combination of molecular biology techniques and systems biology. Precision medicine is one of the greatest opportunities for new medical breakthroughs.
Precision medicine will enable a new era of medicine in which researchers, providers, and patients work together to develop individualized care. For such individualized care using precision medicine, President Obama announced a Precision Medicine Initiative (PMI) for his State on January 20, 2015. He granted USD 215 million in the fiscal year 2016 to support the initiative. Oncology is the initial area of focus for precision medicine, as cancer is one of the leading causes of death worldwide, and its incidence is increasing as the population ages. The patients diagnosed with cancer in 2004 would have had only a 10% chance of obtaining the right treatment for the disease as compared to a 70-80% chance of getting the right treatment today. Many genetically targeted therapies are currently available to cancer patients, and many more are expected to become available in the near future. A large amount of research and development has been undertaken for the development of precise drugs, targeted therapeutics, and laboratory tests for various disease conditions. In FY2015, the NIH invested nearly USD 30.3 billion in medical research that allows investigators to come up with new ideas that can help change the world.
Global Precision Medicine Market- Market Dynamics
There are several driving and restraining factors for the global precision medicine market. Some of these are listed below.
There are large, established online forums that help clinicians collaborate with one another and share information, which will help in the diagnosis and treatment of patients in a better manner. This is a key driving factor for the precision medicine market. Some other driving factors for this market are:
The segmentation of the market for precision medicine is done based on technology (big data analytics, bioinformatics, gene sequencing, drug discovery, companion diagnostics and others), and application (oncology, CNS, immunology, respiratory medicine, infections and others). The oncology segment holds the largest market share of USD XX million, followed by the CNS and immunology segments.
The drug discovery market holds the largest share of USD XX million, followed by gene sequencing and companion diagnostics. In August 2014, UK Prime Minister David Cameron announced EUR 300 million funding for a four-year project to map 100,000 people’s genomes by 2017. Big data analytics is expected to grow at the highest CAGR during the forecast period.
Based on geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The North American market dominates the global precision medicine market with the USA contributing the highest share of revenue, followed by Europe. The spread of analytics and awareness of its potential are increasing at a rapid rate in Europe. The market in the APAC region is growing at a fast pace. This can be attributed to the developments in China and India.
Many players in this market are trying to expand their product portfolio in order to top the global market. While some companies are entering the market by acquisitions, top companies are expanding their growth in this market by acquiring other companies. A few companies have adopted product innovation and new product launches as their key business strategy to ensure their dominance in this market. The major French drug company Sanofi has recently announced that their drug Praluent, which can significantly reduce low-density lipoprotein cholesterol, has received approval from the European Commission for treating adult patients suffering from hypercholesterolemia and LDL cholesterol.
Some of the key players in the market are:
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