Precision Medicine: Implications for value chains and business models in life sciences

Abstract

Precision Medicine (PM) is expected to be one of the biggest revolutions of the upcoming years and not only in the healthcare industry. PM aims to prevent and treat disease on the basis of a person's unique genetic makeup, lifestyle habits, and environment. While the topic has attracted huge attention from scholars in the biomedical field of research, in contrast, literature in the field of business studies is almost absent. This in itself is surprising: this revolution implies a profound impact on the business models of companies and institutions as it pushes a new paradigm of sustainable development for healthcare and welfare systems at the global level. However, little is known about whether, to what extent, and in what direction these dynamics are impacting on the way organisations and value chains are managed, from research to care delivery. Our study addresses this gap: we discuss both theoretical arguments and empirical evidence from a multiple case study survey. Findings show that PM is a multi-faceted phenomenon grounded on novel forms of innovation eco-systems and bundled-based models. We reveal a dramatic shift in the value chain, which is moving upstream from recovery and surgery to prevention and monitoring.