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  • 2019
  • Chapter
  • Economic Dimensions of Personalized and Precision Medicine

Characterizing the Drug Development Pipeline for Precision Medicines

By: Amitabh Chandra, Craig Garthwaite and Ariel Dora Stern
  • Format:Print
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Abstract

BOOK ABSTRACT: Personalized and precision medicine (PPM)—the targeting of therapies according to an individual’s genetic, environmental, or lifestyle characteristics—is becoming an increasingly important approach in health care treatment and prevention. The advancement of PPM is a challenge in traditional clinical, reimbursement, and regulatory landscapes because it is costly to develop and introduces a wide range of scientific, clinical, ethical, and socioeconomic issues. PPM raises a multitude of economic issues, including how information on accurate diagnosis and treatment success will be disseminated and who will bear the cost; changes to physician training to incorporate genetics, probability and statistics, and economic considerations; questions about whether the benefits of PPM will be confined to developed countries or will diffuse to emerging economies with less developed health care systems; the effects of patient heterogeneity on cost-effectiveness analysis; and opportunities for PPM’s growth beyond treatment of acute illness, such as prevention and reversal of chronic conditions. This volume explores the intersection of the scientific, clinical, and economic factors affecting the development of PPM, including its effects on the drug pipeline, on reimbursement of PPM diagnostics and treatments, and on funding the requisite underlying research. The research also examines recent empirical applications of PPM.

Keywords

Healthcare; Precision Medicine

Citation

Chandra, Amitabh, Craig Garthwaite, and Ariel Dora Stern. "Characterizing the Drug Development Pipeline for Precision Medicines." Chap. 5 in Economic Dimensions of Personalized and Precision Medicine, edited by Ernest R. Berndt, Dana P. Goldman, and John W. Rowe, 115–158. University of Chicago Press, 2019.

About The Author

Amitabh Chandra

Technology and Operations Management
→More Publications

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More from the Authors
  • Expert Patients’ Use of Avoidable Health Care By: Amitabh Chandra, Pragya Kakani and Simone Matecna
  • The Health Costs of Cost Sharing By: Amitabh Chandra, Evan Flack and Ziad Obermeyer
  • Medicare Part D Protected-Class Policy Is Associated with Lower Drug Rebates By: Pragya Kakani, Michael Anne Kyle, Amitabh Chandra and Luca Maini
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