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Economic challenges and possible policy actions to advance stratified medicine

Mark R Trusheim1, Ernst R Berndt2

  • 1Massachusetts Institute of Technology Sloan School of Management, Cambridge, MA, USA. trusheim@MIT.EDU.

Personalized Medicine
|May 20, 2018
PubMed

Insights

Developing targeted oncology medicines faces economic hurdles due to shrinking patient populations. Policy solutions are needed to ensure the sustainability of stratified medicine investment and innovation.

Area of Science:

  • Oncology
  • Health Economics
  • Pharmaceutical Development

Background:

  • Scientific advances are creating smaller, targeted patient populations for cancer therapies.
  • This trend presents significant economic challenges for oncology stratified medicine developers.
  • Preliminary evidence suggests a potential retreat of developers and investors from this sector.

Purpose of the Study:

  • To model the economic challenges in developing stratified medicines for small patient populations.
  • To evaluate policy interventions aimed at enhancing economic incentives for stratified medicine development.
  • To assess the economic sustainability of private sector investment in niche oncology markets.

Main Methods:

  • Development of a simple economic model for stratified medicine.
  • Analysis of policy options beyond reimbursement adjustments.
  • Examination of empirical evidence on developer and investor behavior.

Main Results:

  • Economic sustainability is threatened without significant payer flexibility in pricing and oncology spending.
  • Decreasing development time and costs offer the most direct economic improvements for developers.
  • Policies like extended exclusivity or advance market commitments may have limited impact.

Conclusions:

  • Private sector investment in stratified oncology medicine may be unsustainable without supportive policies.
  • Ensuring the translation of scientific advances into new medicines requires addressing economic viability.
  • Policy interventions should focus on reducing development costs and timelines for stratified medicines.
Keywords:
economics of personalized medicinehealth economicspersonalized medicine incentivesstratified medicine

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