Revolutionising Oncology Medicine: A Precision Approach that Cuts Costs and Boosts ROI

By Staff Writer

July 11, 2023

In a groundbreaking study published in Journal of Pharmaceutical Policy and Practice volume, an analysis was conducted on the R&D costs of oncology medicines. The analysis, based on data from company filings from 1997 to 2020, indicates that a precision approach to oncology medicine development using Companion Diagnostic (CDx) could significantly reduce costs and increase ROI.

Despite some missing data, primarily from larger pharmaceutical companies that have acquired smaller firms, the study still provides a robust picture of the R&D landscape. They found that the total R&D spend to develop an oncology medicine (inconsistent use of CDx) is $4432.1 m, a figure that is significantly reduced when a CDx-guided precision oncology approach is adopted.

While the World Health Organization (WHO) has called for more transparency in R&D costs, this study highlights the need for standardisation in reporting R&D spend. This is crucial for health systems to make well-informed decisions on healthcare policy and for the pharmaceutical industry to recover R&D costs and continue innovating.

Findings suggest that precision oncology medicines guided by CDx are not only less expensive to develop but also offer better value to stakeholders, including patients, payers, and the pharmaceutical industry. This approach not only reduces R&D spend but also accelerates the reimbursement process and requires a rethinking of market access strategies.

The implications are far-reaching, impacting drug discovery, market access, health outcomes, and industry policy. As the pharmaceutical industry realises the cost-effectiveness of precision oncology medicines, it presents challenges to ensure equitable treatment provision for all patients.

This study emphasises the need for a flexible CDx development framework to truly benefit patients and ensure that R&D spend in oncology medicine development is affordable to health systems. The industry should revisit the commercial model for precision medicines and their associated diagnostic/prognostic tests to capitalise on the benefits of precision medicine.

Reference url

Recent Posts

NICE Endorses Breakthrough Bladder Cancer Treatment for Enhanced Survival

By Staff Writer

August 25, 2025

Bladder cancer treatment has recently advanced, offering new hope for adults with advanced urothelial cancer. If you’re wondering, “What is the most effective first-line bladder cancer treatment for advanced cases in the UK right now?”—the latest update is that the National Institute for Health a...
UK Pharmaceutical Pricing Analysis: Impasse in VPAG Review Undermines Patient Access and Market G...
The accelerated review of the UK's Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG) concluded without agreement in August 2025. The review focused on soaring payment rates. These require companies to pay up to 35.6% of their revenue from NHS sales. Despite good faith effo...
TAVI Cost-Effectiveness in Brazil: Balancing Coverage Expansion and Economic Viability

By Staff Writer

August 21, 2025

The focus on TAVI cost-effectiveness Brazil has gained attention. The country is assessing the expansion of coverage for transcatheter aortic valve implantation (TAVI). This would include patients with severe aortic stenosis who are classified as low surgical risk (STS-PROM <4%) as a first-lin...