Pharmacogenomics market is estimated to be valued at USD 17.19 Bn in 2024 and is expected to exhibit a CAGR of 11.7% over the forecast period (2024-2031). The global pharmacogenomics market is witnessing high growth owing to the increased demand for precision and personalized medicine along with rising genetic testing.
Market Dynamics:
The growth of the global pharmacogenomics market is driven by two key factors. Firstly, the increasing demand for personalized therapy has compelled pharmaceutical companies to develop drugs tailored to a patient's genetic profile. Pharmacogenomics assists in determining how a patient's genetic makeup affects their response to drugs and helps physicians prescribe the right medication in the right dosage. Secondly, the reduction in sequencing costs has made genetic testing more affordable. Various players are offering direct-to-consumer genetic testing kits which is further driving the market growth. Additionally, growing awareness about the importance of pharmacogenomics among patients and healthcare providers is also contributing to the market expansion.
Market Growth in Precision Medicine is Driving the Demand for Pharmacogenomics
Precision medicine is a medical model using genetic testing to customize treatment according to a patient's genes, lifestyle, and environment. It focuses on prevention and treatment tailored specifically for a person based on their predicted response. With advanced genetic testing enabling more accurate diagnosis and personalized drug therapy, precision medicine is becoming widely accepted in clinical practice. Pharmacogenomics plays a vital role in precision medicine by helping identify which medications will be safe and effective for a given patient based on their genetic makeup. As precision medicine continues gaining traction worldwide, the demand for pharmacogenomic testing will increase significantly to apply personalized treatment strategies.
Rapid Technological Advancements are Enabling Wider Pharmacogenomic Applications
Constant technological improvements are another key driver expanding pharmacogenomics applications and market growth. Next-generation sequencing (NGS) technologies have made genetic analysis much more affordable and accessible compared to earlier methods. Single nucleotide polymorphisms (SNPs) genotyping microarrays are also advancing to test huge numbers of genetic variations simultaneously at low costs. Artificial intelligence (AI) and machine learning algorithms are further enhancing pharmacogenomic data analysis and clinical decision support. Advancing technologies are enabling pharmacogenomic testing to be integrated more routinely into clinical workflows. They are also allowing pharmacogenomic insights to be applied to new therapeutic areas beyond oncology and psychiatry.
Lack of Clinical Guidelines Hinders Pharmacogenomic Test Adoption
Inadequate clinical guidelines and standards remain a major challenge hampering broader pharmacogenomic test adoption. Clinical practice guidelines are still lacking for most drug-gene pairs, leaving clinical uncertainty regarding test interpretation and medication adjustments. Discordance also exists globally in clinical guidelines issued by different organizations. Without robust clinical frameworks, healthcare providers are wary of supporting new pharmacogenomic tests or utilizing test results optimally. Developing standardized clinical guidelines requires extensive research evidence, which is still limited for many pharmacogenomic biomarkers. Overcoming this evidence gap through well-designed studies will be important to translate research findings into clear clinical recommendations facilitating test utilization.
Reimbursement Uncertainty Discourages Pharmacogenomic Investments
Reimbursement policies currently do not provide stable financial support for most pharmacogenomic tests, posing a significant market restraint. Pharmacogenomic testing is still not covered or fully reimbursed through many public and private payers globally due to insufficient evidence regarding their clinical validity and utility. The costs of genotyping and genome sequencing also remain high. Without clear reimbursement pathways, healthcare providers and diagnostic labs are hesitant to invest in pharmacogenomic technologies and services. Resolving reimbursement uncertainties through value-based contracts between payers and manufacturers will encourage more widespread pharmacogenomic testing adoption in clinical practice. Harmonizing international reimbursement policies could also stimulate greater global market expansion.
Direct-to-Consumer Genetic Testing Drives Pharmacogenomic Awareness
Another emerging opportunity lies in leveraging the growing popularity of direct-to-consumer (DTC) genetic testing. Millions of consumers are now opting for DTC tests from companies providing genomic analysis direct to individuals. While the clinical utility of pharmacogenomic data from these tests remains limited, they help raise public awareness about genetic influences on drug response. As the DTC market grows, so does familiarity around precision medicine concepts. Pharmacogenomic profiling could potentially be integrated into DTC testing pipelines. Partnerships between DTC companies and healthcare providers could also result in clinically-validated pharmacogenomic profiling at scale to empower informed medication choices. Overall, DTC genomics serves as an important avenue to propagate pharmacogenomic knowledge and adoption.
*Link: https://www.coherentmarketinsights.com/market-insight/pharmacogenomics-market-1053
Key Development
- On February 26, 2024, Golden Helix, Inc., a bioinformatics company, launched VSPGx, a pharmacogenomics solution for hospitals and testing labs
- In May 2023, University of California, San Francisco (UCSF), a health science university, announced that it had launched the first pharmacogenomics testing service in California, U.S. The health care delivered to patients at UCSF Health will be systematically informed by patient genomic data, ensuring that prescribed therapies are tailored to individuals’ unique biology.
- In December 2022, MapMyGenome, a preventive genomics company, announced that it had launched MedicaMap, a pharmacogenomics solution that analyzes an individual's response to medicines, based on genetic makeup
- In May 2022, Invitae Corporation, a medical genetics company, announced the commercial availability of the expanded Invitae Pharmacogenomics (PGx) Panel which includes the specialized Invitae Pharmacogenomics Mental Health Panel and access to a clinical decision support tool (CDST)
Key Players: Thermo Fisher Scientific Inc., F. Hoffmann-La Roche Ltd, Pharmigene, Abbott, Agilent Technologies, Inc., QIAGEN, GE HealthCare, Empire Genomics, Inc., Bio-Rad Laboratories, Inc., Oxford Nanopore Technologies plc., PerkinElmer Inc. , Myriad Genetics, Inc., Illumina, Inc., Macrogen, Inc. , BGI Genomics, Eurofins Scientific, MapMyGenome, and Invitae Corporation