However, the high cost associated with genetic testing for the identification of biomarkers poses a challenge to the success of theranostics. The uncertainty associated with the clinical utility of biomarkers discovered will negatively impact the return-on-investment (ROI).

"Theranostics is a well understood science, yet pharmaceutical companies have been late adopters," says Ramachandran. "It is rare to see large pharma and diagnostic companies branding themselves as theranostic companies."

Improved cooperation between drug and diagnostic companies will enhance the success of theranostics. The commercialisation of theranostics will be possible by effective communication with the physicians to understand its penetration in the market.

"Companies focusing on theranostics with already licensed drugs can play a key role in reaching out to larger pharmaceutical companies," concludes Ramachandran. "Pharmaceutical companies should be aware of the importance of linking diagnostics to its drug development process."

SOURCE Frost & Sullivan