A Fortitude Investment Partners focus area:
The booming market
for personalised medicine
What is personalised medicine?
Personalised medicine, also known as precision medicine, represents a revolutionary healthcare approach that customises medical treatment to the individual characteristics of each patient.
It leverages information about a person's genes, lifestyle, and environment to prevent, diagnose, and treat diseases more effectively. By concentrating on an individual's profile, personalised medicine seeks to move away from the traditional one-size-fits-all approach towards more individualised care.
The concept of personalised medicine is rooted in genetic research and the understanding that each person’s genes, lifestyle, and environment can significantly influence their health and response to treatment for certain diseases. It promises to enhance treatment efficacy, reduce side effects, and improve overall health outcomes.
As technology advances, personalised medicine is redefining healthcare standards, offering targeted, effective, and safer medical interventions.
The global personalised medicine market is forecast to experience significant growth over the next 10 years.
Current estimates indicate the market will expand from approximately c.US$540 billion in 2022, to anywhere between US$922 to US$1,233 billion over the next 10 years.1
What is driving
market growth?
1. “Personalized Medicine Market Size, Share and Segmentation” report, SNS Insider, September 2023;
“Personalized Medicine Market Size, Share & Trends Analysis” report, Grand View Research, May 2023;
"Personalized Medicine Market” report, Precedence Research, February 2024.
1. Technological advancements
Technological advancements in genomic sequencing and bioinformatics have been pivotal in enabling the detailed analysis of individual genetic profiles.
This, combined with the growth in biomarker identification, which involves identifying and validating new biomarkers for disease states and treatment responses, have been catalysts for the development of new targeted therapies and personalised treatment plans.
Together, these technological advancements have enhanced the precision and efficiency of personalised medicine approaches, fostering a more tailored approach to healthcare.
2. Integration of AI and big data analytics
The deployment of AI and machine learning in diagnosing diseases and predicting treatment outcomes based on genetic data has also been a key driver of market growth.
These technologies have assisted in reducing the time and cost for the pharmaceutical industry to bring new drugs to market, resulting in a swift increase in the development of new drugs, including targeted therapies.
3. Increasing customer demand for tailored treatment
The increasing demand for customisation in healthcare reflects growing patient awareness and desire for treatments tailored to their unique genetic makeup, lifestyle, and health history.
As patients become more informed about the potential benefits of personalised medicine—such as more effective treatments, reduced side effects, and improved overall health outcomes—they are increasingly seeking healthcare options that align with their individual needs.
4. The innovative role of compounding labs
The rise of compounding labs has significantly increased access to personalised medicine. These pharmacies specialise in creating custom medications to meet the specific needs of patients, an approach that exemplifies the essence of personalised healthcare.
They are able to compound medications, prescribed by doctors, that have been tailored to individual profiles or specific health requirements, and provide therapeutic alternatives not available through mass-produced pharmaceuticals.
Compounding pharmacies can modify the strength and concentration of medications, as well as the dosage form (including creams, gels, capsules, injectables, and transdermal patches), to support patients who are unable consume dosages or formats of manufactured pharmaceuticals.
This bespoke medication service supports the growing demand for healthcare solutions catered to unique patient needs, driving further growth in the market for personalised medicine.
What makes it an attractive market for investment?
1. High potential for disruption
The high potential for disruption lies in the ability for personalised medicine to fundamentally change how healthcare is delivered, moving the industry away from a standard approach to one that is highly tailored to the individual.
This shift opens new avenues for innovative treatments, diagnostic methods, and healthcare delivery models, presenting lucrative opportunities for investors ready to back transformative healthcare solutions.
2. Expanding market opportunities
As outlined above, the market for personalised medicine is rapidly expanding, with its application growing across various medical fields and applications.
As the global healthcare industry increasingly adopts personalised approaches, the market for related technologies, services, and products grows, opening a broad spectrum of investment opportunities across diagnostics and genetic testing, digital health platforms, biotech, and pharmaceutical compounding.
Personalised medicine is at the forefront of healthcare innovation, offering enhanced patient outcomes and significant investment opportunities. Market growth is propelled by technological advancements, increasing demand for customised treatment, and the innovative role of compounding pharmacies.
For investors, this market presents a unique combination of high disruption potential and expanding opportunities, making it an increasingly attractive area for investment in the future of healthcare.
Resources
Case studies on two Healthcare related assets:
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