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Updated: May 26, 2026

Cost-Efficient Transcriptomic-Based Drug Screening
Published on: February 23, 2024
Clinical and economic challenges facing pharmacogenomics
J Cohen1, A Wilson, K Manzolillo
1Tufts University School of Medicine, Tufts Center for the Study of Drug Development, Boston, MA 02111, USA. joshua.cohen@tufts.edu
Personalized medicine faces challenges in companion diagnostic reimbursement and evidence generation. Increased comparative effectiveness research is recommended to address these gaps and support pharmacogenomic growth.
Area of Science:
- Pharmacogenomics
- Health Economics
- Regulatory Science
Background:
- Personalized medicine and companion diagnostics offer tailored treatments but face clinical and economic hurdles.
- Existing research highlights regulatory and reimbursement complexities for these innovations.
Purpose of the Study:
- To examine clinical, regulatory, and reimbursement challenges for personalized drugs and companion diagnostics.
- To assess Medicare reimbursement for selected personalized medicines and companion diagnostics.
- To survey stakeholders on diagnostic reimbursement, evidence impact, and pharmacogenomics challenges.
Main Methods:
- Review of clinical, regulatory, and reimbursement issues for eight personalized medicines and companion diagnostics.
- Analysis of Medicare Parts B and D reimbursement data.
- Surveys of payers, drug/diagnostic developers, and pharmacogenomic analysts.
Main Results:
- Medicare Part B drugs show broad access; Part D drugs face more restrictions (prior authorization, quantity limits).
- Companion diagnostics lack comprehensive reimbursement, even when FDA-approved and labeled.
- Payers are skeptical of diagnostic utility due to insufficient evidence linking tests to health outcomes.
Conclusions:
- Lack of clinically useful diagnostics and evidence on effectiveness hinders personalized medicine growth.
- Post-hoc companion diagnostic development is expected to grow moderately; co-development is limited.
- Comparative effectiveness research is crucial for closing evidence gaps and advancing pharmacogenomics.
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Pharmacogenetic Phenotypes: Alterations in Pharmacokinetics, Drug Targets and Biologic Milieu
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Impact of Pharmacokinetic–Pharmacodynamic Models: Regulatory Decisions
