The New Service Model for Diagnostics

Amidst a slew of disappointing IPOs, the moderate success of Genomic Health's IPO signals investor interest in a new diagnostics model: a combination product/service business -- technologically agnostic -- focused on coming up with an answer to a specific yes/no question that will either lead to or discourage an expensive therapy by a specialty physician audience. Several other start-ups are following the same model.

One constant refrain from the late September rEvolution 2005 Symposium for Chief Scientific Officers on Kiawah Island—other than the knotty issue of research productivity—was the increasing importance of diagnostics. The basic challenge: given the attrition rates of drug candidates in company pipelines, the safety requirements from FDA, and the costs of therapy—all rising--the importance of markers that can either determine which drugs to develop or which therapies to use has become patently obvious.

At least four of the attending companies—Roche , Affymetrix Inc. , Perlegen Sciences Inc. and XDx Inc. —have important diagnostic or biomarker programs that are central...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Strategy

Deal Watch: QurAlis Targets Fragile-X Syndrome In Deals With Quiver, UMass

 
• By 

Plus the end of Sanofi’s six-target alliance with IGM, OmniAb’s deals with Veraxa and Angelini, alliances involving Skye/Arecor, Genprex/UTHealth Houston and more.

GSK’s Nucala Set For Dupixent Face-Off After FDA COPD Nod

 
• By 

The UK major's asthma drug gets a key expanded approval.

Zydus To Continue Mirabegron Sales, Looks To World-First Dual Shigella-Typhoid Vaccine

 
• By 

Zydus expects strong mirabegron sales in FY26 amid US litigation even as it builds a growth pillar in vaccines with a world-first, Gates Foundation-aided dual shigella-typhoid vaccine under development and others on the WHO prequalified list

Challenging Environment For Biopharma Is A Tailwind For Royalty Pharma

 

The royalty revenue stream acquirer has around 40 products in its portfolio and expects to generate roughly $3bn this year. Head of R&D and investments Marshall Urist talked about the investment strategy at the RBC Healthcare Conference.

More from Business