The global oncology companion diagnostic testing market across the 10 major countries of the US, France, Germany, Italy, Spain, UK, Japan, China, India, and Brazil is set to rise from $260 million in 2016 to just under $414 million by 2023, representing a compound annual growth rate (CAGR) of 6.9%, according to research and consulting firm GlobalData.
The company’s latest report states that the Asia-Pacific (APAC) region is set to see the highest growth rate in this market, with China and Japan expected to increase with CAGRs of 9.4% and 7.9%, respectively, driven both by increased incidence and increasing uptake of low-cost molecular tests.
Companion diagnostics are devices which detect the presence of a specific biomarker that is linked to a disease condition or therapy in order to ascertain how a patient will respond to a particular treatment. To cope with rising costs, hospitals are moving to evidence-based care and treatment paradigms to lower expenditures.
Nadia McLurcan, GlobalData’s Analyst covering Medical Devices, explains: “It is widely recognized that not all drugs are effective for all individuals and the most ineffective drugs, such as those for cancer, are also the most expensive, and have the most profound and debilitating side effects.
“Companion diagnostics enable physicians to better predict how individual patients will respond to treatment before it is administered, allowing physicians to choose the best possible dose from the start of treatment. Costs might also be reduced, as there is no need to use expensive treatments on populations who are not going to respond.”
One significant challenge in the companion diagnostic market is reimbursement. Adoption is highly dependent on reimbursement policies, so approval of new tests does not necessarily signify immediate adoption. If the molecular test cannot be reimbursed, adoption will be low.
McLurcan notes: “The emergence of new companion diagnostic tests is also highly dependent on the success of the drug pipeline. As a result of increased regulation, new companion diagnostic tests are being developed in parallel to their new drugs; thus, the fate of the companion diagnostic is tied to the success of the drug during clinical trials.
“Diagnostic test manufacturers can eliminate the risk associated with this process through multiple partnerships, or by developing new companion diagnostic tests that are also aimed at stratifying patients for existing therapies.”
- Information based on GlobalData’s report MediPoint: Companion Diagnostic Tests in Oncology – Global Analysis and Market Forecasts.