Pharmacy-service companies Medco Health Services and CVS Caremark are increasing their positions in the genomic-testing market. Medco recently purchased DNA Direct, and late last year, CVS partnered with Generation Health. Medco and CVS previously offered services for personalized medicine, but have expanded them in response to the growing number of genetic tests, payor interest and consumer interest, according to observers. Graham Gardner, chief medical officer for Generation Health, emphasizes the cost savings that genetic testing can provide. However, McKinsey & Company’s Philip Ma views the strategy as a long-term investment due to the uncertainty about the personalized medicine market. The FDA has yet to issue its draft process guidance on biomarker qualification for early drug discovery. The increased role of pharmaceutical service companies in the market could also mean less control for drug companies over how and if their drugs are used.

Source: Nature Biotechnology