Executive Summary
Advancement in precision oncology is driven by a virtuous cycle of innovation – innovations in research and clinical tools, technologies, data, and services contribute to the discovery and development of novel therapies, creating value that gets re-invested in novel tools, technologies, data, and services to fuel the next wave of innovation.
To understand the current state of investment in this innovation ecosystem, we conducted interviews with 25 leaders and decision-makers in pharma R&D to evaluate critical areas of investment, and perceived ROI, today and in the near term (over the next 3 years). Our discussions reveal that companion diagnostics, genomics research and diagnostic tools, clinical trial enablement solutions, and informatics / AI are the areas of greatest pharma investment and perceived ROI today and are expected to remain so in the near future, with liquid biopsies and real-world data also playing increasingly important roles in drug development.
Over the next few years, multiple market forces and trends, including increasing regulation of diagnostic tests, the shift of precision medicine into earlier lines of cancer care, innovation in early cancer detection, and the emergence of novel therapeutic modalities are expected to influence pharma investments throughout the precision oncology development value chain.
In the increasingly competitive pharma research market, and in an economic environment where capital efficiency is vital, understanding pharma’s priority investment areas and levers is critical to strategic planning for research and diagnostic tools, technology, data, and service providers looking to play a leading role in precision oncology innovation ecosystem.
