Precision Medicine Market 2018; Promises a Striking Fortune of $88.64 Billion by 2022

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In the coming years, it is expected that the Global Precision Medicine Market will advance with higher growth rate as compared to previous years. Rising pressure to curb healthcare costs has fuelled the growth of the market for Precision Medicine Market. adds “Precision Medicine Market -2018 Global Analysis, Growth, Trends and Opportunities Research Report Forecasting to 2022” reports to its database.

The report titled “Precision Medicine Market -Forecast to 2022″ intends to provide in-depth analysis resulting from both quantitative and qualitative analysis by Market Research FutureIt includes research targeted at prospective growth opportunities alongside with present market scenarios. The report takes a holistic view of the market, imbibing the client’s point of view thereby making it a valuable guide in the quest to reap the huge market opportunities. The global precision medicine market was valued at $38.92 billion in 2015, and is expected to reach $88.64 billion by 2022. Thus the market is expected to perform a growth at a CAGR of 12.48% from 2015 to 2022.

Regional Outlook of the Global Precision Medicine Market:

North America especially the U.S. is expected to be the Mecca of the global precision medicine market and is expected to occupy more than 40 % of the market share. Europe is also expected to be a consistent market and will crawl up the revenue chart within the forecast period. European markets are expected to be dominated by Germany, France and Scandinavian nations. Countries such as Spain, the UK and Italy will also contribute to the market.

The Asia-Pacific region will be one to watch in terms of growth. The region is expected to be the fastest growing market and sharp rise will be witnessed by Japan with China and India following closely behind. The region of Middle East and Africa will experience slower growth due to poor socio economic growth.

Strategy of Companies in Precision Medicine Market:

Tie-ups, collaboration and takeovers will be the strategy expected of players in the market. The precision medicine market will boost crossover between IT and healthcare. Novartis AG, Laboratory Corporation of America Holdings, Eli Lilly and Company and AstraZeneca are expected to leverage their huge cash in taking over small players with expertise in the field. Thus intra industry collaborations will be huge contributors in the overall development of the global precision medicine market.

Large players in the healthcare industry are losing market share in the generic drug segment. Top 10 big pharmaceuticals are losing market share from an impressive 12% CAGR from 2000-2007 to a low 8% CAGR post 2012, while their market share has taken a hit from around 50% market share in the year 2007, to only 35% in the year 2015. Patent loses have been the major reason for the loss in market share which has resulted in lower market equity in the future resulting in increasing reliance on M&A for future growth. Companies have adopted M&A as a strategy to offset the revenue loss from loss of patents. To offset the fall in revenue companies are diversifying into other aligned sectors to develop or sustain future market equity and growth. Thus companies with huge cash pile are expected to devour smaller start-ups with weak revenues. . Thus, traditional pharmaceutical companies are extensively acquiring to get a pie of the lucrative new segments such as precision medicine market. Thus both players will benefit from such arrangement. Another factor fuelling the M&A is the post-recession cheap interest rates which compensates the revenue loss from the loss of patented molecules. Thus, there is a fundamental difference between pre-recession and post-recession financial conditions. Capital is not scarce and companies are sitting on piles of cash.

Mergers and acquisitions in pharmaceutical industry is a strategy for acquiring business segments with high growth potential. Innovation is one activity where scale doesn’t work and large scale may even be counterproductive. Innovation can’t be manufactured and can only be nurtured and this reality has been the motivation for acquiring companies from a large global pool of smaller, specialized companies. Thus, acquiring intellectual property under development is seen as an attractive market equity gaining move.

Another line of thought behind M&A is achieving greater market sales by combining complementary skills and platforms of both companies. For example, achieving large market foothold by taking advantage of distribution chain and market platform of other companies to reduce the market lead time and reap maximum benefit before patent lifetime ends.

Diversification by buying companies, operating in high growth business segments such as fine chemicals, medical devices, and others is another approach to M&A. However, diversification brings larger complexities in managing the company and may be counterproductive to innovation due to management issues.


Market Scenario of Global Precision Medicine Market:

Precision medicine refers to medicines developed as per an individual’s genetic profile that helps as a guide for the prevention, diagnosis and treatment of diseases.

The major market driving factor for precision medicine are demand for customised and personalized medicine, growing awareness about the possible applications of precision medicine, growing diagnosis and screening of genetic diseases, increase of risk factors such as UV rays, pollution, cancer among others. The larger investments and the associated development of better infrastructure is a silver lining of the market for precision medicine market.

The market constraints include concerns of data security and privacy, high diagnostic costs, stringent regulations and standards, reimbursement policies and regulatory framework, limited knowledge about the application of test and techniques, lack of research and evidences creating hindrances in its application. The nascent nature of the technology has led to a limited application of the precision medicine. Thus low volumes is a strong barrier as it increases the cost of the final product to customers. The scarcity of trained professionals is acting as a drag on the market.

Segmentation of Global Precision Medicine Market:

The global precision medicine market is segmented into ecosystem, sub-markets, and therapeutics. The ecosystem segment is sub-segmented into pharma & biotech companies, diagnostic tool companies, healthcare IT/ big data companies, and clinical laboratories. The sub-markets segment is sub-segmented into companion diagnostics, biomarker-based test, targeted therapeutics, pharmacogenomics, molecular diagnostics and others. The therapeutics segment is sub-segmented into cancer/oncology, cardiovascular disease, central nervous system, infectious diseases, others.

The global precision medicine market is expected to reach $88.64 billion by 2022 growing at a CAGR growth of 12.48%. The oncology domain is expected to dominate the market due to the growing cases of cancer. The reasons for the dominance is the early detection which is the holy grail of cancer treatment. The need to accurately titrate the dose and the selection of drug regimen gives cancer segment the lead over the other applications.



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