Pharmacogenomics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Pharmacogenomics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The pharmacogenomics market was valued at USD 7,169.74 million in 2021, and it is expected to reach USD 10,819.51 million by 2027, registering a CAGR of 7.26%, during the forecast period of 2022-2027.

The emergence of the COVID-19 pandemic in 2020 severely impacted the pharmacogenomics market due to the halt or stoppage in clinical trials, drug development, and diagnostics procedures other than COVID-19, which led to the decline in the growth of the pharmacogenomics market. According to the research study published in December 2021, titled “Impact of the COVID-19 Pandemic on the Diagnosis of New Cancers: A National Multicenter Study of the Veterans Affairs Healthcare System”, there was a substantial reduction in procedures used to diagnose cancer and subsequent reductions in new diagnoses of cancer across the United States because of the COVID-19 pandemic and new cancer diagnoses decreased by 13% to 23% which shows a negative impact of the COVID-19 on the diagnosis of new cancer which negatively impacted the pharmacogenomics market. However, the COVID-19 pandemic also have a positive impact on the market as there is an increasing demand for genomics technology in the development of therapeutics and diagnostics against COVID-19. Further, with the declining COVID-19 cases and large-scale vaccination programs around the world, the pharmacogenomics market is expected to regain its full potential over the forecast period.

The pharmacogenomics market is driven by the rising popularity of precision medicine coupled with growing research and development expenditure on pharmacogenomics technologies, which is giving rise to the fast development of novel products. In addition, the high incidence rate of adverse drug reactions is giving leading to the higher adoption of pharmacogenomics in the global market.

The increasing focus on precision medicine is expected to augment the pharmacogenomics market, as the goal of the precision medicine approach is to integrate genetic and environmental information about diseases and/or their responses to treatments. In June 2020, Infosys launched personalized medicine solution for the pharmaceutical industry to digitally transform their processes and drive stronger business outcomes. With the rapid growth in digital technologies and advances in biology, the pharmacogenomics market is projected to grow significantly as digital technologies can help pharma companies accelerate their time to market and provide better patient experiences, thus leading to lucrative growth of the market. Additionally, spending on research and development has increased over time which is further expected to boost the market growth. For instance, in October 2021, the Israel Precision Medicine Partnership (IPMP) awarded funding of about USD 9.9 million to 11 projects in Israel for the research of personalized medicine that includes cancers, Crohn’s disease, and rare diseases.

Moreover, there is increasing adoption of Sanger technology and next-generation sequencing in academic and institutional research projects. Adding to that, a rise in funding and investment programs augment the demand for DNA sequencing products in these entities. For instance, according to the May 2022 report of the National Institute of Health of the United States, the spending on research in cancer genomics has increased significantly over the years from USD 861 million in 2016 to USD 1,220 million in 2022, and this data shows significant investment in the genomics and personalized medicine which is expected to have a positive impact on the growth of the pharmacogenomics market. Pharmacogenomics is also helpful in cancer treatment and has proved to improve the survival of patients, and at the same time, has been found to reduce the unnecessary cost due to unresponsive treatment by patients. Hence, pharmacogenomics for cancer therapy has led to several important discoveries in the current cancer treatment. Therefore, owing to the above-mentioned factors, the pharmacogenomics market is expected to grow over the forecast period. However, issues related to reimbursement and problem associated with the detection of gene variation that affects drug response are expected to restrain the growth of the pharmacogenomics market during the forecast period of the study.

Key Market TrendsDrug Discovery Segment is Expected to Occupy a Significant Share in the Pharmacogenomics Market Over Forecast Period

Drug discovery is a process that aims at identifying a compound therapeutically helpful in treating and curing diseases. Typically, a drug discovery effort addresses a biological target that plays a role in developing the disease or starts from a molecule with interesting biological activities.

In clinical studies, pharmacogenetic testing can be used to group people according to their genotype, which reflects how well they can metabolize drugs and as a result, clinical trials turn out better and significant adverse drug reactions are avoided. This can also reduce attrition of drug compounds. Thus, the studied segment is expected to grow in the forecast period.​

The safety and efficacy of biopharmaceuticals have led to the adoption of pharmacogenomics by the companies as it not only improves the efficacy of the drug but also reduces the chances of adverse events which is expected to play a significant role in the growth of the studied segment. For instance, according to a research study published in April 2021, titled “Pharmacogenomics in the Era of Next Generation Sequencing – From Byte to Bedside”, pharmacogenomics can assist drug researchers in identifying drug responders and non-responders as well as people who are at risk of ADRs, with the main objective of accelerating medication development and preventing drug failures. This can be accomplished by incorporating genomic data into various stages of drug discovery and development, starting with the identification and validation of biological targets and moving on to patient recruitment for clinical trials.

Moreover, the increasing investment in drug discovery and development activities will further increase the adoption of pharmacogenomics technology which is anticipated to have a significant and positive impact on the drug discovery segment in the pharmacogenomics market. for instance, according to the 2022 annual report of Eli Lilly and Company, their research and development expenditure increased from USD 6,085.7 million in 2020 to USD 7,025.9 million in 2021 and it has increased over the years owing to the high investment in the new drug discovery and development activities. Therefore, owing to the above-mentioned factors, the drug discovery segment is expected to hold a significant share in the pharmacogenomics market during the forecast period.

North America is Anticipated to Hold a Significant Market Share in the Pharmacogenomics Market

The North American region is expected to have a significant share in the pharmacogenomics market over the forecast period owing to the factors such as high investment in personalized medicine and drug discovery and development activities, the presence of robust healthcare infrastructure, and the high prevalence of several chronic diseases. For instance, according to the Globocan 2020 report, the burden of cancer in the North American region is expected to increase from 2.6 million cases in 2020 to 3.5 million cases by 2040, which is expected to drive demand for advanced and effective therapeutics where pharmacogenomics can play a crucial role and thus, studied market is expected to grow in the North American region.

In the North American region, the united states are expected to have a major market share as several pharmaceutical and biopharmaceutical companies are headquartered in the united states and are highly invested in the development of new therapeutics and also, and there is huge funding from the government body like National Institute of Health (NIH) for the research activities in the area and coupled with high disease prevalence, the United States is expected to be a major market for the pharmacogenomics market. For instance, various government bodies, like NHGRI (National Human Genome Research Institute, United States), have been supporting research related to human genome sequencing, while funding research related to the genome's structure, function, and role in health and disease. For instance, according to the research study published in October 2021, titled “Development and Implementation of In-House Pharmacogenomic Testing Program at a Major Academic Health System”, about half of the population (45.8%) of the United States in the last decade had used one or more prescription drugs in the last 30 days and there are about 1.5 million preventable adverse drug reaction (ADR) in the United States every year which led to the death of about 100,000 Americans and pharmacogenomics is a field of precision medicine that uses a genetic variation to predict response to medication which can not only reduce the rate of prevalence of ADR but also the high dependence of population of various drugs which may not be beneficial for them and due to these factors, the pharmacogenomics market is expected to grow over the forecast period in the United States.

Further, the launch of new products and services in the country is expected to fuel growth in the pharmacogenomics market as it will increase the adoption of pharmacogenomics products and services in the region. For instance, in April 2022, in Michigan, Blue Care Network introduced Blue Cross Personalized Medicine, the end-to-end pharmacogenomics precision medicine program which uses genetic testing to adapt prescription therapies to specific individuals after reviewing the list of pharmaceuticals recommended for various cardiovascular, oncological, and behavioral health disorders. Therefore, owing to the above-mentioned factors, the North American region is expected to have a significant market share in the pharmacogenomics market and the United States will be at forefront of it over the forecast period.

Competitive Landscape

The large interest of researchers and investment in the safety and efficiency of drugs by companies is the major factors responsible for the growth of the market, making it highly competitive with the presence of many key players in the pharmacogenomics market. The government is also involved in funding companies that work to develop bioinformatics technology for precision medicine research applications. Some of the players are Abbott Laboratories Inc, Biomerieux SA​, Becton, Dickinson and Company​, Bio-Rad Laboratories Inc.​, F.Hoffmann-La Roche Ltd

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