Publications by Biophoenix' Principals

Theranostics: Commercial Opportunities for Diagnostic and Pharmaceutical Companies
Publisher:D&MD Publications Inc
Year of publication:2001
Type of publication:Management report
Publisher's reference (if any):9017
Author(s):Sreten Bogdanovic and Beata Langlands
Approximate page count:100
Price when published:$1,995 (Print or CD-ROM)
$2,995 (Both)
Remarks:
  1. Page numbers, where given, refer to the draft manuscript (which may differ from the published version).
  2. The copyright in this report is owned by the publisher, to whom any requests for copies should be addressed.
                                  THERANOSTICS:
     COMMERCIAL OPPORTUNITIES FOR DIAGNOSTIC AND PHARMACEUTICAL COMPANIES

                           An Executive Briefing for
                  Drug & Market Development Publications Inc

                                TABLE OF CONTENTS

                                                                     Page

     TABLE OF CONTENTS                                                  i

     LIST OF TABLES                                                   iii

     EXECUTIVE SUMMARY                                               ES.1

     CHAPTER 1 INTRODUCTION

      1.1  Introduction to theranostics                                 1

      1.2  Market drivers                                               2
         1.2.1  The growth of the point-of-care (POC) market            2
         1.2.2  The growth of the nucleic acid
                testing (NAT) market                                    4

      1.3  Applications of theranostics to drug therapies               4
         1.3.1  Established drug therapies                              4
         1.3.2  New drugs in development                                5

      1.4  Major therapy areas addressed by POC theranostics            5
         1.4.1  Cardiovascular disease and critical care                5
         1.4.2  Miscellaneous diseases including cancer                 7

      1.5  NAT-based theranostics and pharmacogenomics                  9
         1.5.1  Genetic variability and drug responses                 10
         1.5.2  New technologies for variability analysis              11

      1.6  Major therapy areas addressed by NAT theranostics           12
         1.6.1  Viral infectious disease                               12
         1.6.2  Prediction of drug toxicity                            14
         1.6.3  Cancer                                                 16
         1.6.4  Cardiovascular disease                                 19
         1.6.5  Alzheimer's disease                                    20
         1.6.6  Asthma and miscellaneous other diseases                21

      1.7  Related issues outside the scope of this report             24

     CHAPTER 2 PROFILES OF COMPANIES DEVELOPING
     THERANOSTIC TESTS AND CAPABILITIES

      2.1  Affymetrix Inc                                              25
      2.2  Axys Pharmaceuticals Inc                                    27
         2.2.1 PPGx INC (to be acquired by DNA Sciences Inc)           27
      2.3  CompuCyte Corporation                                       30
      2.4  CuraGen Corporation                                         32
      2.5  DAKO A/S                                                    35
      2.6  diaDexus Llc                                                36
      2.7  Eurona Medical A/B                                          38
      2.8  Gemini Holdings Plc                                         40
      2.9  Genaissance Pharmaceuticals Inc                             42
      2.10  Gene Logic Inc                                             45
      2.11  Genset SA                                                  48
      2.12  Hyseq Inc                                                  51
      2.13  Infogene Medizinische Genetik GmbH                         52
      2.14  Innogenetics N.V.                                          54
      2.15  MassTrace Inc                                              56
      2.16  Millennium Pharmaceuticals Inc                             57
      2.17  MitoKor                                                    60
      2.18  Myriad Genetics Inc                                        62
      2.19  Nova Molecular Diagnostics Inc                             64
      2.20  Orchid Biocomputer Inc                                     66
      2.21  Ostex International                                        68
      2.22  PharmaNetics Inc                                           70
      2.23  Quest Diagnostics Inc                                      72
      2.24  Variagenics Inc                                            74
      2.25  Virco                                                      77
      2.26  Visible Genetics Inc                                       79
      2.27  Xenometrix Inc                                             82

     CHAPTER 3 MARKET CONSIDERATIONS AND FORECASTS

      3.1  Overview of the World In Vitro Diagnostics Market           84
      3.2  IVD product market                                          84
      3.3  IVD Geographical Market                                     85
      3.4  IVD Supplier Market                                         86
      3.5  IVD Customer Market                                         88
      3.6  The Point-of-Care Market                                    89
      3.7  Biochips and arrays                                         89
      3.8  Current Theranostics Market, by Application                 91
      3.9  Value of the theranostics market in 2000 and 2006           93
      3.10  Major applications of theranostics to 2006                 93
         3.10.1  Cancer                                                93
         3.10.2  Cardiovascular diseases                               94
         3.10.3  AIDS and other viral diseases                         95
         3.10.4  Central nervous system (CNS) conditions               96
         3.10.5  Prevention of adverse drug reactions                  97

     CHAPTER 4 TRENDS AND OPPORTUNITIES

      4.1  The advent of a new industrial sector                       98
      4.2  New market takes shape through alliances                    98
      4.3  Healthcare expenditure may shift to diagnostics             99
      4.4  A challenge to the pharmaceutical industry                 100
      4.5  New drug targets, new theranostic opportunities            101
      4.6  The challenge of adverse drug reactions                    102
      4.7  The trend towards patient-initiated-prescribing            103
      4.8  A new focus for the growing POC market                     103
      4.9  The challenge of POC nucleic acid-based testing            104
      4.10  Theranostic applications of DNA microarrays               105
      4.11  NAT-based theranostics and existing drugs                 106
      4.12  NAT-based theranostics in clinical trials                 107
      4.13  The future of drug discovery                              108
      4.14  Sources of new theranostics                               109

     APPENDIX 1  GLOSSARY OF TECHNICAL TERMS AND ABBREVIATIONS        111

                          LIST OF TABLES

                                                                     Page

     Table 1.1  Theranostic Products For Cardiovascular Disease
                And Critical Care Based On Traditional Technologies     6
     Table 1.2  Theranostic Products For Miscellaneous Diseases
                Based On Traditional Technologies                       8
     Table 1.3  Theranostic Products For Infectious Disease
                Based On Nucleic Acid Testing Technologies             14
     Table 1.4  Theranostic Products For Prediction Of Drug Tox-
                icity Based On Nucleic Acid Testing Technologies       16
     Table 1.5  Theranostic Products For Cancer Based
                On Nucleic Acid Testing Technologies                   18
     Table 1.6  Theranostic Products For Cardiovascular
                Disease Based On Nucleic Acid Testing Technologies     20
     Table 1.7  Theranostic Products For Alzheimer Disease
                Based On Nucleic Acid Testing Technologies             21
     Table 1.8  Theranostic Products For Miscellaneous Diseases
                Based On Nucleic Acid Testing Technologies             22
     Table 3.1  Worldwide Diagnostics Market By Product Type           84
     Table 3.2  World Diagnostics Sales By Region                      85
     Table 3.3  Leading Diagnostics Companies By Worldwide Sales       86
     Table 3.4  Worldwide Diagnostics Production By Region             87
     Table 3.5  Sales Of Diagnostic Products By Customer Market        88
     Table 3.6  Important Applications Of Theranostics                 91
     Table 3.7  World Pharmaceutical Market By Region In 2000          92
     Table 3.8  Sizes Of Major Pharma Markets In 2000                  92
     Table 3.9  Prevalence Of Cardiovascular Disease In The USA        94

EXECUTIVE SUMMARY

This briefing provides an overview of the recent developments in the emerging field of theranostics, which is bringing together the diagnostic and pharmaceutical industries. The briefing highlights the therapeutic areas where theranostics has already made its mark, and examines technology developments in this area. It provides a thorough review of theranostic products in development, explains their applications and profiles leading market players. It also examines the in vitro diagnostic market sectors relevant to theranostics and the theranostic market by therapeutic application, and provides revenue forecasts to 2006.

In traditional medical practice therapeutic choices follow diagnosis, which may be based on clinical signs alone, or may be made in conjunction with an in vivo or in vitro diagnostic test. However, the effectiveness of the prescribed drug therapy and the likelihood of side effects often cannot be predicted for individual patients. Now a new generation of theranostic tests promises to transform the art of medical diagnosis and treatment into a predictive science. Theranostics (therapy specific diagnostics) are being developed specifically for predicting and assessing drug response in individual patients rather than diagnosing disease.

Theranostic tests can be used to select patients for treatments that are particularly likely to benefit them and unlikely to produce side-effects. They can also provide an early and objective indication of treatment efficacy in individual patients, so that (if necessary) the treatment can be altered with a minimum of delay. This Briefing profiles leading companies developing theranostic products, which are predominantly in the areas of cardiovascular disease, cancer, infectious diseases, Alzheimer's disease, and prediction of drug toxicity.

Theranostics aims at enhancing the effectiveness of drugs, and as such represents a commercial opportunity for both the pharmaceutical and diagnostic industries. Traditional pharmaceutical companies face intense pressure to maintain revenue growth rates and profitability. Theranostics holds the key to improving the success rate of drug candidates entering clinical trials (currently around 20%) and to marketing approved drugs more effectively. Traditional diagnostic companies are operating in an industry which is currently growing at a rate of only 4% per annum overall, and need to seize new opportunities to ensure their survival. Overall, the advent of theranostics is expected significantly to increase healthcare spending on diagnostics.

The advent of theranostics is likely to lead to more pharmaceutical companies setting up diagnostic divisions, or acquiring specialist diagnostic companies. It also presents fresh opportunities for collaboration between diagnostic and pharmaceutical companies in bringing new drugs to market. Spearheading this trend, DAKO and Genentech together created HercepTest and Herceptin (trastuzumab), the first theranostic test approved simultaneously with a new therapeutic drug.

In addition to HercepTest (which is an immunohistochemical test), other theranostic tests are in development which use traditional clinical chemistry, immunoassay and cell-based technologies. Theranostic tests based on traditional diagnostic technologies belong largely to the point-of-care category of diagnostic tests. However, most of the theranostic tests currently in development are nucleic acid tests.

At present the largest application for nucleic acid testing is in infectious diseases. In viral infections due to Hepatitis B, Hepatitis C or HIV, drug resistance can emerge due to mutations of the virus. Theranostic tests can examine the viral nucleic acid to detect emerging drug resistance and thereby guide therapy choice.

Other nucleic acid tests aim to predict a patient's response to therapy or susceptibility to toxic reactions from their genetic make-up. An example of the former is Eurona's lead product in development, the ACE Inhibitor Responder Assay, which is based on genetic variations in the renin-angiotensin-aldosterone system, and which can be used to identify and pre-select patients who would experience a maximal reduction in blood pressure following treatment with ACE inhibitors alone, while an example of the latter is PPGx's recently launched TPMT (thiopurine S-methyltransferase) test, which is enabling doctors to identify patients at risk for potentially fatal adverse reactions to 6-mercaptopurine, an agent used in the treatment of leukemia. Recent studies estimate that adverse drug reactions are the fourth leading cause of death in the US.

Future progress in theranostics will draw on developments in pharmacogenomics, which seeks to establish correlations between responses to specific drugs and the genetic profiles of patients. The most common form of genetic profiling relies on the use of DNA sequence variations called single nucleotide polymorphisms (SNPs). Currently patient genetic data is used mainly to make drug development more efficient and cost-effective. SNP genotyping is being used to determine genotypes associated with drug responsiveness, side effects, or optimal dose. Nova Molecular pioneered SNP genotyping of the apolipoprotein E gene to predict Alzheimer's disease patients' responses to cholinomimetic therapies and it is now widely used in clinical trials of new drugs for this indication. Stratifying patients according to variables that may be predictors of safety or efficacy can enhance the statistical power of a clinical trial.

DNA microarray technologies are being used increasingly to evaluate patient-to-patient variations in both gene sequence and gene expression. This Briefing summarises key developments in this technology area and profiles leading companies analysing genetic variability, in particular SNP variability, and drug responses.

The Briefing contains profiles of the following companies: Affymetrix Inc, Axys Pharmaceuticals and PPGx, CompuCyte Corporation, CuraGen Corporation, DAKO A/S, diaDexus Llc, Eurona Medical A/B, Gemini Holdings Plc, Genaissance Pharmaceuticals Inc, Gene Logic Inc, Genset SA, Hyseq Inc, Infogene Medizinische Genetik GmbH, Innogenetics N.V., MassTrace Inc, Millennium Pharmaceuticals Inc, MitoKor, Myriad Genetics Inc, Nova Molecular Diagnostics Inc, Orchid Biocomputer Inc, Ostex International, PharmaNetics Inc, Quest Diagnostics Inc, Variagenics Inc, Virco, Visible Genetics Inc and Xenometrix Inc.



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