I had the opportunity to publish an article here with my friends at Dentsu Health regarding the changing landscape for Precision Medicine.
What other conclusions can we draw for our community focused on bring the Era of Trial and Error to a close:
The headwinds today are:
- High Development Costs: Developing and launching precision diagnostics is more and more expensive, meaning a bigger war chest is required earlier for go/no go decisions.
- Unfortunately Squeezed Profit Margins: Healthcare cost pressures and value-based care models limit reimbursements for new diagnostics - more volume will be needed to make up for reduced profit margins.
- Regulatory Hurdles: Gaining approvals and navigating reimbursement pathways are sticky with more and more pushback of new and traditional diagnostics, and especially now if they’re associated with AI.
Tailwinds:
- Growing Demand for Personalized Care: Patients and healthcare professionals want and need targeted therapies and preventative approaches.
- Government Initiatives: Many countries are investing in precision medicine research and infrastructure, creating opportunities for innovative diagnostics.
- AI and Big Data Integration: Advancements in AI and data analytics are enabling more precise diagnoses and treatment plans.
- Rise of Specialty Care: Concierge medicine and specialized clinics are looking for cutting-edge technologies to attract patients and stand out from the pack.
Launch Best Practices:
- Focus on Cost-Effectiveness: Demonstrate how your diagnostic can reduce unnecessary tests, treatments, and improve overall healthcare costs. Find ways to get your COGS down, and lower your in market price to get market share up. High share means more patients getting better care, and the fly wheel falls into place with reimbursement and adoption.
- Partner with Technology Leaders: Integrate AI and data analytics into your diagnostic to provide deeper insights and improved accuracy.
- Target Niche Markets: Develop more narrowly focused diagnostics for specific diseases or patient populations where traditional testing is less accurate.
- Rally your Advocacy Networks: Collaborate with patient advocacy groups and healthcare professionals to increase awareness and adoption.
- Develop a More Clear Value Proposition: Articulate how your diagnostic improves patient outcomes, reduces costs, and aligns with the broader shift towards precision medicine.
- Embrace New Technologies: Utilize wearable devices, mobile apps, and other digital tools to enhance patient engagement and data collection.
Overall, the future of precision medicine is promising, but healthcare founders and CEOs need to be aware of both the challenges and opportunities of getting to market. By focusing on cost-effectiveness, advocacy support, partnerships to drive adoption, they can develop and launch successful precision diagnostics that improve patient care and contribute to the advancement of personalized medicine.