The global companion diagnostic market will be worth $19.3bn by 2023

Monday 10 March 2014, Amsterdam

A new report predicts that the global market for companion diagnostics will be worth $19.3bn by 2023. The market generated sales of $1.6bn in 2011.

The companion diagnostics market has experienced significant growth in recent years and has become one of the most promising areas within the IVD market. The number of partnerships between pharmaceutical companies and diagnostic manufacturers will continue to increase significantly over the forecast period given the array of benefits that these tests offer, predicts. Technological advancements in the field, including the discovery of new biomarkers and the development of new molecular tests, has helped propel the companion diagnostics market which is clearly evidenced by the vast number of drugs in development that have an associated biomarker programme. The market will be driven by the increasing development and use of biomarkers as well as the progressive decrease in costs of sequencing technologies. Biomarkers are now being employed at early stages of drug discovery and development, with many being increasingly developed in to companion diagnostic tests.

Rodrigo Gutierrez Gamboa, healthcare industry analyst, says “M&A activity in the companion diagnostics market has experienced explosive growth in recent years, and we expect this trend to continue as most pharmaceutical companies do not have an in-house diagnostic capability for either the development of a companion diagnostic or the commercialisation of the test once the drug is approved. Furthermore, in the last few years, most pharmaceutical companies have adopted new projects and strategies to develop companion diagnostic products. It seems most of these companies have begun to shift away from the blockbuster business model and realised that in order to be more effective, and save money, new drugs will have to be more personalised. Oncology remains the dominant field in the market; however, many of the leading companies are now reported to be working to develop companion diagnostics in other therapeutic areas including neurological, autoimmune, inflammatory and cardiovascular diseases”.

The new research also suggests that the world companion diagnostics market will benefit from a positive reimbursement outlook in key regional markets, primarily due to the cost-effective nature of the tests. The report predicts that this market will grow fast to 2023. The future of companion diagnostics appears promising and has significant potential for growth owing to the increasing demand for safer and more effective therapies. This new report adds to the wide range of analytical reports in healthcare and other industry areas.