A groundbreaking study titled “Delivering the precision oncology paradigm – reduced R&D costs and greater return on investment through a companion diagnostic-informed precision oncology medicines approach” has demonstrated the economic advantages of precision medicine in the field of oncology. Published in the Journal of Pharmaceutical Policy and Practice, the study presents the first-ever comprehensive economic analysis of precision oncology medicines compared to traditional oncology treatments.
The research, conducted by a team of precision healthcare economists and researchers, explores the economic impact of precision medicine in oncology and highlights the significant cost benefits associated with this approach. It emphasises the need to reconsider the commercial model for precision medicines and their companion diagnostic/prognostic tests.
Professor Mark Lawler, co-lead of Health Data Research UK’s Big Data For Complex Disease Research Driver Programme and senior author of the study, emphasises the importance of precision medicine in delivering affordable care for cancer patients. He underscores the potential of a companion diagnostic-guided precision oncology approach to reduce costs by minimising clinical trial attrition rates and sparing patients from ineffective treatments with significant side effects.
The study reveals that developing an oncology medicine without companion diagnostic guidance costs over $1 billion more in research and development (R&D) expenses compared to a precision oncology approach. Thus, CDx-guided precision oncology approaches offer better value to stakeholders such as payers, patients, and the pharmaceutical industry.
Professor Richard Sullivan, co-author of the paper and Director of the Institute of Cancer Policy, highlights the economic impact of precision medicine and its potential to reach more patients. He notes the significant cost savings in R&D demonstrated in the study and suggests redirecting these savings towards improved testing and cost benefits for health systems.
The study also emphasises the role of precise health economic approaches in providing the evidence base for the implementation of precision oncology. Dr. Raymond Henderson, lead author and Senior Health Technology Assessment Manager at Salutem Insights Ltd, stresses the importance of such studies in supporting the delivery of precision medicine for patients.
While traditional oncology medicines have historically generated higher revenues compared to precision medicines, a study from last year by Diaceutics highlighted clinical practice gaps in companion diagnostic testing. Inefficiencies in the diagnostic pathway have resulted in less than 50% of eligible patients gaining access to the most effective precision medicines for their specific cancer types. The study suggests that the precision medicine approach can enable pharmaceutical companies to adopt new business models, reinvest in robust tumor testing, and ensure equitable pricing systems while delivering significant clinical benefits.
Peter Keeling, co-author of the study and CEO of Diaceutics, emphasises the findings’ importance for the pharmaceutical industry. He suggests that investing in better testing and recovering patients lost in the diagnostic pathway can lead to substantial lifecycle revenues per therapy.
Despite the evidence highlighting the value of precision oncology approaches to key stakeholders, including payers, patients, and the pharmaceutical industry, the study acknowledges the need to overcome barriers and establish a new operating model to ensure cost-effective treatments reach the intended target patients.
The study received support from a grant by Health Data Research UK (HDR UK) and funding from the Queen’s University Belfast Foundation. The full paper can be accessed here.
