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Precision Medicine

Leveraging personal data for custom-fit diagnosis and treatment

Overview

Tailored healthcare through genetic profiling

Precision Medicine (PM) is a transformative healthcare approach for disease prevention and treatment; it uses a patient’s genetic information, medical history, environmental factors, and lifestyle to determine the most effective treatment option that has the least amount of side effects.

PM has already gained traction in the pharmaceutical industry and is poised to become an integral part of the healthcare space. Nearly 25% of new molecular entities approved by the US Food and Drug Administration were classified as precision medicine in 2019, up from a mere 5% in 2005. Many drug developers have turned to biomarkers (biological markers or gene variations present in a patient, or disease such as a tumor), which is the foundation PM uses to generate accurate targets. For example, biomarkers were used in more than 61% of clinical trials for cancer treatment in 2019 compared to just 18% in 2000.

What's driving this industry?
Market Sizing

The US precision medicine market could reach USD 26 billion–40 billion by 2026

Conservative case

USD 25.6 Bn

Base case

USD 32.6 Bn

Expansion case

USD 40.1 Bn

USD billion01020304050202120222023202420252026
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Market Mapping


Genetic testing and drug development startups dominate the PM landscape

The precision medicine industry can be categorized into six broad segments based on the type of solution offered, encompassing: genetic testing companies, pharmacogenomic test developers, bioinformatics companies, in-vitro companion diagnostic devices, and test manufacturers, drug discovery and development companies as well as multiomics platforms. Overall, there is a high concentration of startups in the genetic testing and drug development segments. 

Traditional diagnostic companies, meanwhile, have branched out into companion diagnostics, while big pharma companies such as Pfizer, AstraZeneca, GSK, and Roche, have a presence in multiple segments.

Incumbents
Growth
Early
Seed
Pre-Seed
Genetic Testing
?
Companion Diagnostics (CDx) tools
?
Pharmacogenomics (PGx)
?
Drug Discovery and Developers
?
Bioinformatics
?
Multiomics
?
Biopharmaceuticals
Biopharmaceuticals
Biopharmaceuticals
Biopharmaceuticals
Biopharmaceuticals
Biopharmaceuticals
Quest Diagnostics
GRAIL
Invitae
Tempus Labs
Caris Life Sciences
23andMe
Sema4
Veracyte
Guardant Health
Centogene
Illumina
Myriad Genetics
Ultima Genomics
Color Genomics
Personalis
BillionToOne
C2i Genomics
Variantyx
Nucleix
GB HealthWatch
Epic Sciences
Genome Medical
Oncohost
Gemelli Biotech
MyOme
PreludeDx
Nucleus Genomics
Quantgene
Kailos Genetics
Janssen
Roche
Qiagen
Thermo Fisher Scientific
Agilent Technologies
Quest Diagnostics
Abbott Molecular
Invitae
Veracyte
Guardant Health
Foundation Medicine
Illumina
Myriad Genetics
Prometheus Biosciences
Personalis
Acrivon Therapeutics
Thermo Fisher Scientific
23andMe
Myriad Genetics
Scipher Medicine
Xilis
Genome Medical
Nucleai
SEngine Precision Medicine
OneOme
Kailos Genetics
AstraZeneca
GlaxoSmithKline
Pfizer
Janssen
Roche
Novartis
23andMe
Blueprint Medicines Corporation
Mirati Therapeutics
Kura Oncology
Fulcrum Therapeutics
Prometheus Biosciences
Praxis Precision Medicines
Chinook Therapeutics
Endeavor BioMedicines
Relay Therapeutics
Neumora Therapeutics
Tango Therapeutics
Tenaya Therapeutics
IDEAYA Bioscience
LifeMine Therapeutics
Scorpion Therapeutics
Alumis
Deep Genomics
Monte Rosa Therapeutics
Neuron23
Black Diamond Therapeutics
Kinnate Biopharmaceuticals
Ribon Therapeutics
OMass Therapeutics
Celsius Therapeutics
Gemini Therapeutics
Verge Genomics
MiroBio
BIOAGE LABS
IDRx
Acrivon Therapeutics
InxMed
Interline Therapeutics
Microbiotica
Tvardi Therapeutics
Cardiff Oncology
Engine Biosciences
Novascenta
Armgo Pharma
Haya Therapeutics
ProJenX
Aclipse Therapeutics
Qiagen
Quest Diagnostics
Google
Tempus Labs
SomaLogic
Sema4
Centogene
Proscia
PathAI
Syapse
Congenica
Genomenon
Iterative Scopes
Genome Insight
SeqOne Genomics
Imagene AI
Zephyr AI
InnoSIGN
Prenosis
AstraZeneca
DNAnexus
Freenome
BostonGene
Octant Bio
PrognomiQ
Isabl

The Disruptors


Public funding dominates drug development and companion diagnostic startups 

Having opted for early-stage public listings due to the heavy capital needed during the development process, more than 60% of the drug discovery and development startups as well as companion diagnostic testing companies in the industry hub have access to public funding.

A majority of drug development startups (nearly 80%) were incorporated in or after 2015, coincided with the launch of the Precision Medicine Initiative in the US. They have seen rapid advancements in recent years, and several of them are now conducting clinical trials for their drug candidates while partnering with leading incumbents as part of their go-to-market strategy. Larger players in the companion diagnostics segment have also tapped into public funding via initial public offerings to support commercial operations and enhance clinical studies. 

The genetic testing startups have raised significant funding from private investors and the segment is dominated by early and growth-stage startups Grail, Tempus, Color, and Helix. Early-stage startups PathAI and Syapse are the highest privately funded companies in the Bioinformatics segment.

Genetic Testing

?

Disruptors

?
Funding in USD Millions
Illumina
Public - Market cap USD 34.4 bn
Guardant Health
Public - Market cap USD 5.3 bn
Veracyte
Public - Market cap USD 1.9 bn
Myriad Genetics
Public - Market cap USD 1.6 bn
23andMe
Public - Market cap USD 1.3 bn
Invitae
Public - Market cap USD 675.3 mn
Centogene
Public - Market cap USD 92.0 mn
GRAIL
2005
Tempus Labs
1345
Caris Life Sciences
1290
Sema4
791
Ultima Genomics
600
Color Genomics
482
Personalis
225
BillionToOne
212
Epic Sciences
196
Genome Medical
121
C2i Genomics
112
Variantyx
101
Nucleix
83
Gemelli Biotech
28
Nucleus Genomics
18
Watchlist
?
Oncohost
MyOme
PreludeDx
Quantgene
GB HealthWatch
Kailos Genetics

Companion Diagnostics (CDx) tools

?

Disruptors

?
Funding in USD Millions
Illumina
Public - Market cap USD 34.4 bn
Guardant Health
Public - Market cap USD 5.3 bn
Veracyte
Public - Market cap USD 1.9 bn
Prometheus Biosciences
Public - Market cap USD 1.9 bn
Myriad Genetics
Public - Market cap USD 1.6 bn
Invitae
Public - Market cap USD 675.3 mn
Personalis
225
Foundation Medicine
97
Watchlist
?
Acrivon Therapeutics

Pharmacogenomics (PGx)

?

Disruptors

?
Funding in USD Millions
Myriad Genetics
Public - Market cap USD 1.6 bn
23andMe
Public - Market cap USD 1.3 bn
Scipher Medicine
227
Genome Medical
121
Xilis
92
Nucleai
47
Watchlist
?
SEngine Precision Medicine
OneOme
Kailos Genetics

Drug Discovery and Developers

?

Disruptors

?
Funding in USD Millions
Mirati Therapeutics
Public - Market cap USD 5.7 bn
Blueprint Medicines Corporation
Public - Market cap USD 2.7 bn
Relay Therapeutics
Public - Market cap USD 2.3 bn
Prometheus Biosciences
Public - Market cap USD 1.9 bn
23andMe
Public - Market cap USD 1.3 bn
Chinook Therapeutics
Public - Market cap USD 1.3 bn
Kura Oncology
Public - Market cap USD 994.1 mn
IDEAYA Bioscience
Public - Market cap USD 845.8 mn
Tango Therapeutics
Public - Market cap USD 656.9 mn
Monte Rosa Therapeutics
Public - Market cap USD 410.4 mn
Fulcrum Therapeutics
Public - Market cap USD 356.6 mn
Kinnate Biopharmaceuticals
Public - Market cap USD 347.1 mn
Tenaya Therapeutics
Public - Market cap USD 104.7 mn
Praxis Precision Medicines
Public - Market cap USD 90.9 mn
Black Diamond Therapeutics
Public - Market cap USD 79.3 mn
Gemini Therapeutics
Public - Market cap USD 75.6 mn
Neumora Therapeutics
612
LifeMine Therapeutics
295
Scorpion Therapeutics
270
Alumis
270
Deep Genomics
237
Neuron23
214
Ribon Therapeutics
184
Endeavor BioMedicines
163
OMass Therapeutics
150
Celsius Therapeutics
148
MiroBio
130
BIOAGE LABS
124
IDRx
122
InxMed
94
Interline Therapeutics
92
Microbiotica
83
Tvardi Therapeutics
81
Cardiff Oncology
80
Engine Biosciences
53
Watchlist
?
Verge Genomics
Acrivon Therapeutics
Novascenta
Armgo Pharma
Haya Therapeutics
Aclipse Therapeutics
ProJenX

Bioinformatics

?

Disruptors

?
Funding in USD Millions
Centogene
Public - Market cap USD 92.0 mn
SomaLogic
Public - Market cap Unknown
Tempus Labs
1345
Sema4
791
PathAI
255
Syapse
223
Iterative Scopes
194
Congenica
82
Proscia
71
Genomenon
33
SeqOne Genomics
26
Prenosis
7
Watchlist
?
Genome Insight
Imagene AI
Zephyr AI
InnoSIGN

Multiomics

?

Disruptors

?
Funding in USD Millions
Freenome
1098
DNAnexus
473
BostonGene
200
Octant Bio
115
PrognomiQ
101
Watchlist
?
Isabl

Illumina

Illumina, a next-generation sequencing (NGS) company, is engaged in developing, manufacturing, and marketing DNA sequencing and array-based solutions for genetic and genomic analysis. It is focused on serving the life science research market, including academic institutions and genomic research centers as well as biotechnology and pharmaceutical companies. The company entered the NGS space by acquiring Solexa in 2006. Since then, its sequencing technology aided the decline in genetic testing costs from USD 100 million in 2001 to less than USD 600 in 2020.

It developed a range of sequencing instruments to accelerate research into diseases, drug development, and molecular tests. These instruments have applications in areas such as oncology, genetic diseases, and prenatal testing. Its latest product NovaSeq X Series was launched in September 2022 which can generate more than 20,000 genomes per year. The firm installed more than 17,000 active sequencer systems by the end of 2021.The company opened its first manufacturing site in China in August 2022 to meet the growing demand in the region, and has planned to achieve complete localized production within the next five years. 

In terms of acquisitions, Illumina acquired liquid biopsy testing startup GRAIL in August 2021 for a total consideration of USD 8 billion. After a year-long review by antitrust regulators in the US and EU, a ruling in favor of Illumina was announced in September 2022, while the EU blocked the acquisition because it could lead to anti-competitive practices in the market. In response to the decision, Illumina was exploring possibilities of divesting GRAIL and appealing the decision.

In June 2022, the firm acquired the metagenomics company IDbyDNA. The two firms initially partnered in May 2020 to co-market IDbyDNA’s Explify platform, a DNA search engine that can detect and identify more than 50,000 microorganisms and 3,000 pathogens.

Key customers and partnerships

Illumina develops a variety of next-generation sequencing products for in vitro diagnostic use (companion diagnostics) via partnerships with large pharmaceutical companies such as Eli Lilly, Bayer, Bristol-Myers Squibb, Merk, Janssen Biotech and Roche. In October 2022, the company also partnered with big pharma AstraZeneca for a research collaboration to advance drug discovery using artificial intelligence-based genomic analysis. 

The company also collaborates with other precision medicine companies, such as Syapse, QIAGEN, and GeneSeeq, and has strategic partnerships with healthcare systems and insurance providers.

Funding and financials

Founded in 1998, Illumina became a public company in 2000, trading on Nasdaq under the symbol “ILMN.” It reported a non-GAAP net income of USD 892 million for the fiscal year 2021, up 34% YoY. Revenue reached USD 4.5 billion for the year, up 40% YoY. For the nine months ended September 2022, the net income turned negative USD 4.3 billion from a positive of USD 0.65 billion due to USD 3.91 billion goodwill impairment charge in Q3 2022 but revenue was up by 5% YoY to USD 3.5 billion. Illumina reduced its expected topline growth to 1%, while non-GAAP earnings per share are forecast to reach USD 2.35–2.50. In November 2022, the company also announced it would lay off 5% of its workforce globally, amounting to over 9,100 individuals in total within Q4 2022. 

The company also launched a venture fund called the Illumina Accelerator in 2014 to invest in genomic startups. By September 2021, Illumina Accelerator had invested in 61 genomics startups globally and had raised more than USD 1 billion in funding.

Segment:
Genetic Testing
Total funding:
USD 28.0 million
Competitors:
Veracyte, Myriad Genetics, Invitae
Disruptor Funding History

Genetic Testing:

Illumina
Guardant Health
Veracyte
23andMe
Invitae
Centogene
GRAIL
Tempus Labs
Caris Life Sciences
Sema4
Ultima Genomics
Color Genomics
Personalis
BillionToOne
Epic Sciences
Genome Medical
C2i Genomics
Variantyx
Nucleix
Gemelli Biotech
Nucleus Genomics
Oncohost
MyOme
PreludeDx
Quantgene
GB HealthWatch
Kailos Genetics

Companion Diagnostics (CDx) tools:

Illumina
Guardant Health
Veracyte
Prometheus Biosciences
Invitae
Personalis
Foundation Medicine
Acrivon Therapeutics

Pharmacogenomics (PGx):

23andMe
Scipher Medicine
Genome Medical
Xilis
Nucleai
SEngine Precision Medicine
OneOme
Kailos Genetics

Incumbents


In-house initiatives remain the most common PM approach

Two main types of incumbents are actively involved in the precision medicine space: 1) traditional diagnostic companies such as Abbott Molecular and Thermo Fisher Scientific that have entered the genetic testing space and companion diagnostics (CDx) for precision medicine, and 2) traditional drug developers such as AstraZeneca, Roche, GlaxoSmithKline, and Pfizer that have added precision oncology and other targeted therapies to their portfolio.

In most instances, big pharma companies and traditional diagnostic companies have developed/built out in-house capabilities to branch out into precision medicine.  Some big pharma companies such as Roche and Janssen also have in-house diagnostic operations and expanded into companion diagnostics required for precision drugs. Other incumbents have expanded their precision medicine capabilities and service via acquisitions.  There are several collaborations and strategic partnerships that have also taken place between different players in the precision medicine ecosystem including partnerships between 1) traditional drug developers and diagnostic companies where the latter develops CDx tests for the former’s targeted treatments, 2) traditional drug developers and startup drug developers to co-develop, combine, license and commercialize precision drugs or targeted treatments, as well 3) traditional large pharma companies and startup companion diagnostic developers that co-develop CDx tests.

Genetic Testing
Companion Diagnostics (CDx) tools
Pharmacogenomics (PGx)
Drug Discovery and Developers
Bioinformatics
Multiomics
In House Development
M&A
Partnership
Investment
AstraZeneca
GlaxoSmithKline
Pfizer
Janssen
Roche
Novartis
Qiagen
Thermo Fisher Scientific
Agilent Technologies
Quest Diagnostics
Abbott Molecular
Google

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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