Companion diagnostics is a pathway to personalized medicine, a key trend inhealthcare which is giving the diagnostics field a huge boost in terms ofpublicity, revenue potential and investment interest. Though drug companieshave resisted the idea of tests to target therapeutics, fearing reducedproduct sales, several factors are contributing to a change in attitude.These include a need for improved clinical trials and the realization thateffective, targeted therapeutics can enjoy higher sales thangeneral-market-focused, trial-and-error therapeutics with higherprice-points for improved therapeutic efficacy.

Still, Kalorama is conservative in its near-term outlook for the companiondiagnostics market, estimating it at $27 million in 2007 and growing tofive times that size over the next ten years. Currently the market consistsof testing that is more 'ad hoc' and 'associated' with therapeuticintervention than actually based on solid molecular data.

"The development in parallel, of a companion diagnostic with a therapeuticis dependent on the success of the therapeutic's clinical trials, andthat's more risk than diagnostic companies normally have to undertake,"said Kenneth Krul, PhD, the author of the study. "Other challenges includethe cost of genetic analysis and privacy concerns among patients. While wesee a need for companion diagnostics in niche therapeutics, reviving orphandrug markets, possibly a royalty business model... it is likely to be asmaller market and a longer term outlook than some in the industryrealize."

Kalorama Information's report "Companion Diagnostics Markets (A RealisticAssessment of the Opportunities, Challenges, Key Players and ImportantTrends in Personalized Medicine)," covers the market applications ofcurrent and future technology to the development of companion diagnosticswith an emphasis on both pharmacogenomics and pharmacogenetics, andforecasts through 2018. The report can be purchased directly at:http://www.kaloramainformation.com/Companion-Diagnostics-Realistic-1646599/.

About Kalorama Information

Kalorama Information supplies the latest in independent market research inthe life sciences, as well as a full range of custom research services.Kalorama routinely assists media with healthcare topics, and can provideexperts to speak about markets in the life sciences industry.