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Pharmacogenomics, has the potential to spark a major, technology-driven restructuring of the health care and pharmaceuticals industries

Published on December 21, 2004 at 11:44 AM · No Comments

Pharmacogenomics, the study of genetic variability in the way individuals respond to medicines, has the potential to spark a major, technology-driven restructuring of the health care and pharmaceuticals industries, according to a commentary published in the current issue of Nature Medicine by faculty of the Indiana University Program in Pharmacogenomics, Ethics, and Public Policy.

Commentary co-authors Barbara Evans, Ph.D., J.D., David Flockhart, M.D., Ph.D.,and Eric Meslin, Ph.D., see pharmacogenomics, which matches drugs to an individual's specific genetic makeup, as having major implications for the way health care will be delivered and financed in the future.

Pharmacogenomics has the potential to reduce "trial and error" in health care through tests that can identify, in advance, which patients are likely to have a good response to a particular drug therapy. The goal is to target specific drugs at specific patients, using genetic information to increase treatment successes and reduce adverse reactions.

The authors note that many of the health care industry's business norms date to an earlier era when prescribing was more an art than a science. "For example, the usual practice today is that patients and insurers must pay, even if a treatment fails to work. As well-targeted therapies become more commonplace, people may start to question that rule," said Dr. Evans, a senior scientist in the Indiana University School of Medicine's Department of Medicine. She is an economist and attorney has been heavily involved over the past twenty years in restructuring of regulated industries in the U.S., Russia, Central Asia, and the Middle East.

The authors expect pressure in coming years for health care providers and drug manufacturers to bear a larger share of the costs associated with drug-treatment failures that occur when therapies are not well targeted.

According to Dr. Evans, it has been estimated that only 60% of prescriptions written produce the desired therapeutic benefits in patients. The remaining 40% either fail to produce a positive response or occasionally harm the patient.

"In 2002, overall prescription drug spending in the U.S. was approximately $162 billion. A back-of-the-envelope calculation suggests that up to $65 billion (or 40% of this total) may have been spent on drugs that, for one reason or another, did not help the patient get well. Pharmacogenomics only addresses some of these treatment failures--those that have genetic roots. Still, the numbers are so large that even a small improvement in targeting could save billions of dollars," said Dr. Evans,

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