Familiarize yourself with Precision Medicine Diagnostics and Prescription Digital Therapeutics. The innovation in these markets has the potential to improve clinical outcomes across a range of mental health and physical conditions. Market growth will be associated with potentially important PMPM cost impacts as utilization increases and benefit designs evolve. Experience with existing and new technologies will enable a better understanding of possible financial efficiencies related to their use. One category of Precision Medicine Diagnostics includes genetic diagnostics, which are analyses of DNA and genetic material. The resulting genetic insights are to predict disease or enhance response to treatment. The U.S. market is expected to grow from about $5 billion to approximately $8 billion in 2025. Prescription digital therapeutics (PDTs) are software-based interventions intended to prevent, manage or treat disease. PDTs are prescribed by physicians alongside prescription drugs, supported by clinical data, and regulated by the Food & Drug Administration. PDTs enable collection of real-world data for use by prescribing clinicians and other health care stakeholders. To date, the FDA has authorized just nine PDTs, but the annual global growth is expected to grow from about 19 percent to 26 percent, resulting in an estimated $10 billion market in 2025.
After the session, you will be able to describe how the two markets are defined and articulate the current and projected market sizes. You will also be encouraged to increase attention to the forecasting challenges that these developing areas pose and incorporate respective considerations into financial modeling.