Skip to main content

Thank you for visiting nature.com. You are using a browser version with limited support for CSS. To obtain the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Internet Explorer). In the meantime, to ensure continued support, we are displaying the site without styles and JavaScript.

  • Review Article
  • Published:

Measuring the value of pharmacogenomics

Key Points

  • There have been many questions raised about whether pharmacogenomics (PGx) interventions will be of significant value, and how to assess this value.

  • These questions have taken on more importance because new PGx tests for common diseases and frequently used drugs are poised to enter the market, the US Food and Drug Administration has issued new guidance documents related to PGx, and there are increasing concerns about drug safety and costs.

  • Here, we discuss the application of economics-based resource-allocation frameworks to assess the value of PGx, and the findings so far.

  • We develop a resource-allocation framework for assessing the potential value of PGx testing from a population perspective, and apply this framework to the example of tests for variant alleles of the important drug-metabolizing enzyme CYP2D6, as such tests could ultimately be relevant to the majority of the population.

  • Our review provides evidence for the assertion that there is high potential value in expanding the use of PGx but also that there are major challenges to doing so.

  • Two important areas for future research and policy will be obtaining additional data on the association of genetic variation and drug metabolism, response, and clinical outcomes as well as data on adverse drug reactions, and achieving an additional synthesis and dissemination of existing data.

Abstract

Pharmacogenetics and pharmacogenomics offer the potential of developing DNA-based tests to help maximize drug efficacy and enhance drug safety. Major scientific advances in this field have brought us to the point where such tests are poised to enter more widespread clinical use. However, many questions have been raised about whether such tests will be of significant value, and how to assess this. Here, we review the application of economics-based resource-allocation frameworks to assess the value of pharmacogenomics, and the findings so far. We then develop a resource-allocation framework for assessing the potential value of pharmacogenomic testing from a population perspective, and apply this framework to the example of testing for variant alleles of CYP2D6, an important drug-metabolizing enzyme. This review provides a framework for analysing the value of pharmacogenomic interventions, and suggests where further research and development could be most beneficial.

This is a preview of subscription content, access via your institution

Access options

Buy this article

Prices may be subject to local taxes which are calculated during checkout

Similar content being viewed by others

References

  1. Collins, F. S. Shattuck lecture — Medical and societal consequences of the human genome project. N. Engl. J. Med. 341, 28–37 (1999).

    Article  CAS  Google Scholar 

  2. Collins, F. S. & McKusick, V. A. Implications of the human genome project for medical science. JAMA 285, 540–544 (2001).

    Article  CAS  Google Scholar 

  3. Varmus, H. Getting ready for gene-based medicine. N. Engl. J. Med. 347, 1526–1527 (2002).

    Article  Google Scholar 

  4. Khoury, M. J., McCabe, L. L. & McCabe, E. R. Population screening in the age of genomic medicine. N. Engl. J. Med. 348, 50–58 (2003).

    Article  CAS  Google Scholar 

  5. Phillips, K. A. & Van Bebber, S. L. Regulatory perspectives on pharmacogenomics: a review of the literature on key issues faced by the United States Food and Drug Administration. Med. Care Res. Rev. (in the press).

  6. Phillips, K. A., Van Bebber, S. L., Veenstra, D. & Sakowski, J. The economics of pharmacogenomics. Curr. Pharmacogenomics 1, 277–284 (2003).

    Article  CAS  Google Scholar 

  7. Phillips, K. A., Veenstra, D., Van Bebber, S. L. & Sakowski, J. An introduction to cost-effectiveness and cost–benefit analysis of pharmacogenomics. Pharmacogenomics 4, 231–239 (2003). Provides an overview of methods for analysing the value of pharmacogenomics.

    Article  Google Scholar 

  8. Phillips, K. A., Veenstra, D. L., Oren, E., Lee, J. K. & Sadee, W. Potential role of pharmacogenomics in reducing adverse drug reactions: a systematic review. JAMA 286, 2270–2279 (2001).

    Article  CAS  Google Scholar 

  9. Phillips, K. A., Veenstra, D. L., Ramsey, S. D., Van Bebber, S. L. & Sakowski, J. Genetic testing and pharmacogenomics: issues for determining the impact to health care delivery and costs. Am. J. Manag. Care 10, 425–432 (2004).

    PubMed  Google Scholar 

  10. Veenstra, D. L., Higashi, M. K. & Phillips, K. A. Assessing the cost-effectiveness of pharmacogenomics. Pharm. Sci. 2 [online], <http://www.aapspharmsci.org/articles/ps0203/ps020329/ps020329.pdf> (2000).

  11. Danzon, P. & Towse, A. The economics of gene therapy and of pharmacogenetics. Value Health 5, 5–13 (2002).

    Article  Google Scholar 

  12. Robertson, J. A., Brody, B., Buchanan, A., Kahn, J. & McPherson, E. Pharmacogenetic challenges for the health care system. Health Affairs 21, 155–167 (2002).

    Article  Google Scholar 

  13. Roses, A. D. Pharmacogenetics and the practice of medicine. Nature 405, 857–895 (2000).

    Article  CAS  Google Scholar 

  14. Ingelman-Sundberg, M. Pharmacogenetics: an opportunity for a safer and more efficient pharmacotherapy. J. Intern. Med. 250, 186–200 (2001).

    Article  CAS  Google Scholar 

  15. Fishbain, D. A. et al. Genetic testing for enzymes of drug metabolism: does it have clinical utility for pain medicine at the present time? A structured review. Pain Medicine 5, 81–93 (2004).

    Article  Google Scholar 

  16. Shah, J. Economic and regulatory considerations in pharmacogenomics for drug licensing and healthcare. Nature Biotechnol. 21, 747–753 (2003).

    Article  CAS  Google Scholar 

  17. Evans, W. & Relling, M. Pharmacogenomics: translating functional genomics into rational therapeutics. Science 286, 487–491 (1999).

    Article  CAS  Google Scholar 

  18. Holtzman, N. & Marteau, T. Will genetics revolutionize medicine? N. Engl. J. Med. 343, 141–144 (2000).

    Article  CAS  Google Scholar 

  19. Holtzman, N. A. & Marteau, T. M. Will genetics revolutionalize medicine? Author response. N. Engl. J. Med. 343, 1498 (2000).

    Article  Google Scholar 

  20. Lindpaintner, K. Pharmacogenetics and the future of medical practice. J. Mol. Med. 81, 141–153 (2003).

    Article  Google Scholar 

  21. Issa, A. M. Ethical perspectives on pharmacogenomic profiling in the drug development process. Nature Rev. Drug Discov. 1, 300–308 (2002).

    Article  CAS  Google Scholar 

  22. Issa, A. M. Ethical considerations in clinical pharmacogenomics research. Trends Pharm. Sci. 21, 247–249 (2000).

    Article  CAS  Google Scholar 

  23. Clayton, E. W. Ethical, legal, and social implications of genomic medicine. N. Engl. J. Med. 349, 562–569 (2003).

    Article  Google Scholar 

  24. Ries Merikangas, K. & Risch, N. Genomic priorities and public health. Science 302, 599–601 (2004). Evaluates the population impact of genomics on complex diseases.

    Article  Google Scholar 

  25. Haga, S. B. & Burke, W. Using pharmacogenetics to improve drug safety and efficacy. JAMA 291, 2869–2871 (2004). Assesses need for evidence and incentives to move pharmacogenomics forward.

    Article  CAS  Google Scholar 

  26. Webster, A., Martin, P., Lewis, G. & Smart, A. Integrating pharmacogenetics into society: in search of a model. Nature Rev. Genet. 5, 663–669 (2004).

    Article  CAS  Google Scholar 

  27. Food and Drug Administration. FDA clears first of kind genetic lab test [online], <http://www.fda.gov/bbs/topics/news/2004/new01149.html> (2004).

  28. Lesko, L. J. & Woodcock, J. Translation of pharmacogenomics and pharmacogenetics: a regulatory perspective. Nature Rev. Drug Discov. 3, 763–769 (2004).

    Article  CAS  Google Scholar 

  29. Food and Drug Administration. Guidance for industry: pharmacogenomic data submissions [online], <http://www.fda.gov/cber/gdlns/pharmdtasub.pdf> (2005).

  30. Lesko, L. J. et al. Pharmacogenetics and pharmacogenomics in drug development and regulatory decision making: report of the first FDA-PWG-PhRMA-DruSafe Workshop. J. Clin. Pharmacol. 43, 342–358 (2003).

    Article  CAS  Google Scholar 

  31. Salerno, R. A. & Lesko, L. J. Pharmacogenomics in drug development and regulatory decision-making: the Genomic Data Submission (GDS) proposal. Pharmacogenomics 5, 25–30 (2004).

    Article  Google Scholar 

  32. FDC Reports. FDA Pharmacogenomics Advisory Committee Will Oversee Data Submission. The Pink Sheet 22 March (2004).

  33. US Department of Health and Human Services & Food and Drug Administration. Innovation or Stagnation: Challenge and Opportunity on the Critical Path to New Medical Products [online], <http://www.fda.gov/oc/initiatives/criticalpath/whitepaper.html> (2004).

  34. Secretary's Advisory Committee on Genetics Health and Society. Second Meeting, October 22–23 (2003).

  35. Gutman, S. OIVD requests a meeting with Roche Diagnostics regarding the AmpliChip CYP450 Microarray. [online], <http://www.fda.gov/cdrh/oivd/letter-roche2.html> (2003).

  36. Kaiser, J. FDA puts the brakes on Roche's gene array Test. Science 302, 1134 (2003).

    Article  CAS  Google Scholar 

  37. Steimer, W. & Potter, J. M. Pharmacogenetic screening and therapeutic drugs. Clin. Chim. Acta 315, 137–155 (2002).

    Article  CAS  Google Scholar 

  38. Phillips, K. A., Veenstra, D. L. & Sadee, W. Implications of the genetics revolution for health services research: pharmacogenomics and improvements in drug therapy. Health Services Research 35, 1–12 (2000).

    Google Scholar 

  39. Phillips, K. A. & Van Bebber, S. L. Cost-effectiveness of pharmacogenomic interventions: a systematic review of the literature. Pharmacogenomics 5, 1139–1149 (2004). Provides a review of cost-effectiveness analyses to date.

    Article  Google Scholar 

  40. Gold, M., Siegel, J., Russell, L. & Weinstein, M. Cost-Effectiveness in Health And Medicine (Oxford Univ. Press, New York, 1996).

    Google Scholar 

  41. Drummond, M. F. Cost-of-illness studies — a major headache. Pharmacoeconomics 2, 1–4 (1992).

    Article  CAS  Google Scholar 

  42. Rice, D. P. Estimating the cost of illness. (Public Health Service publication, US Gov. Printing Office, 1966).

    Google Scholar 

  43. Rice, D. P. Cost of illness studies: what is good about them? Inj. Prev. 6, 177–179 (2000).

    Article  CAS  Google Scholar 

  44. Varmus, H. Evaluating the burden of disease and spending the research dollars of the National Institutes of Health. N. Engl. J. Med. 340, 1914–15 (1999).

    Article  CAS  Google Scholar 

  45. Wolf, C. & Smith, G. Pharmacogenetics. Br. Med. Bull. 55, 366–386 (1999).

    Article  CAS  Google Scholar 

  46. European Society of Human Genetics. Polymorphic sequence variants in medicine: technical, social, legal and ethical issues — pharmacogenomics as an example. Background document. (Draft Version as per June 10, 2004) [online], <http://www.eshg.org/ESHG-IPTSPGX.pdf> (2004).

  47. Food and Drug Administration. Guidance for Industry: Pharmacogenomics Data Submission. Draft Guidance [online], <http://www.fda.gov/cder/guidance/5900dft.pdf> (2003).

  48. Meyer, U. A. Pharmacogenetics — five decades of therapeutic lessons from genetic diversity. Nature Rev. Genet. 5, 669–676 (2004).

    Article  CAS  Google Scholar 

  49. Cytochrome P450 Drug Interaction Table. [online], <http://medicine.iupui.edu/flockhart/table.htm> (2004).

  50. Drug Topics.com. The top 200 brand-name drugs by unit in 2003 [online], <http://www.drugtopics.com/drugtopics/article/articleDetail.jsp?id=104560> (2003).

  51. Drug Topics.com. The top 200 generic drugs by unit in 2003 [online], <http://www.drugtopics.com/drugtopics/article/articleDetail.jsp?id=104565>(2003).

  52. Drug Topics.com. The top 200 brand-name drugs by retail sales in 2003 [online], <http://www.drugtopics.com/drugtopics/article/articleDetail.jsp?id=104561> (2003).

  53. Drug Topics.com. The top 200 generic drugs by retail sales in 2003 [online], <http://www.drugtopics.com/drugtopics/article/articleDetail.jsp?id=104567> (2003).

  54. Elsevier Inc. MD Consult Core Collection [online], <http://www.mdconsult.com/> (2004).

  55. Klein, T. E. et al. Integrating genotype and phenotype information: an overview of the PharmGKB project. Pharmacogenomics J. 1, 167–170 (2001).

    Article  CAS  Google Scholar 

  56. Ingelman-Sundberg, M. Human drug metabolising cytochrome P450 enzymes: properties and polymorphisms. Naunyn-Schmiedebergs Arch. Pharmacol. 369, 89–104 (2003).

    Article  Google Scholar 

  57. American Heart Association. Heart Disease and Stroke Statistics — 2004 Update [online](2003).

  58. National Institute of Mental Health. NIH Publication No. 01-4584. The numbers count — mental disorders in America: a summary of statistics describing the prevalence of mental disorders in America [online], <http://www.nimh.nih.gov/publicat/numbers.cfm> (2001).

  59. National Academy on an Aging Society. Depression: a treatable disease — challenges for the 21st century: chronic and disabling conditions. Number 9. [online], <http://www.agingsociety.org/agingsociety/pdf/depression.pdf> (2000).

  60. Gibbons, R. J. et al. ACC/AHA 2002 guideline update for the management of patients with chronic stable angina: a report of the American College of Cardiology/American Heart Association Task Force on Practice Guidelines (Committee to Update the 1999 Guidelines for the Management of Patients with Chronic Stable Angina) [online], <http://www.acc.org/clinical/guidelines/stable/stable.pdf> (2002).

  61. American College of Cardiology & American Heart Association Inc. ACC/AHA/ESC Pocket Guidelines for the Management of Patients with Atrial Fibrillation [online](2002).

  62. DuPont, R. L., Rice, D. P., Shiraki, S. & Rowland, C. Economic costs of obsessive–compulsive disorder. Cited in Anxiety Disorders: Obsessive–Compulsive Disorder (MDchoice.com) [online], <http://mdchoice.com/Pt/consumer/anxOCD.asp> (1996).

  63. Pfizer. Zoloft OCD fact sheet [online], <http://www.zoloft.com/psd/factsheet/ocdfact.pdf> (2000).

  64. Agency for Healthcare Research and Quality. Evidence Report/Technology Assessment (Number 11): Treatment of Attention-Deficit/Hyperactivity Disorder [online], <http://www.ncbi.nlm.nih.gov/books/bv.fcgi?rid=hstat1.chapter.14677> (1999).

  65. Chan, E., Zhan, C. & Homer, C. J. Health care use and costs for children with attention-deficit/hyperactivity disorder: national estimates from the medical expenditure panel survey. Arch. Pediatr. Adolesc. Med. 156, 504–11 (2002).

    Article  Google Scholar 

  66. Rice, D. P. The economic impact of schizophrenia. J. Clin. Psychiatry 60 (Suppl. 1), 28–30 (1999).

    Google Scholar 

  67. Adams, P. F., Hendershot, G. E. & Marano, M. A. Current estimates from the National Health Interview Survey, 1996. National Center for Health Statistics. Vital Health Stat 10(200) [online], <http://www.cdc.gov/nchs/data/series/sr_10/10_200_1.pdf> (1999).

  68. Fendrick, A. M., Monto, A. S., Nightengale, B. & Sarnes, M. The economic burden of non-influenza-related viral respiratory tract infection in the United States. Arch. Intern. Med. 163, 487–494 (2003).

    Article  Google Scholar 

  69. Ospina, M. & Harstall, C. Prevalence of chronic pain: an overview HTA Report 29 [online], <http://www.ahfmr.ab.ca/hta/hta-publications/reports/prevalence_chronic_pain.pdf>(2002).

  70. Stewart, W. F., Ricci, J. A., Chee, E., Morganstein, D. & Lipton, R. Lost productive time and cost due to common pain conditions in the US workforce. JAMA 290, 2443–2454 (2003).

    Article  CAS  Google Scholar 

  71. Lethbridge-Çejku, M., Schiller, J. S. & Bernadel, L. Summary health statisticsfor US Adults: National Health Interview Survey, 2002. National Center for Health Statistics. Vital and Health Statistics Series 10 [online], <http://www.cdc.gov/nchs/data/series/sr_10/sr10_222.pdf> (2004).

  72. CDC & US Department of Health and Human Services. Preventing chronic diseases: investing wisely in health. screening to prevent cancer deaths [online], <http://www.cdc.gov/nccdphp/pe_factsheets/pefs_cancer.pdf> (2003).

  73. Altman, R. B. et al. Indexing pharmacogenetic knowledge on the World Wide Web. Pharmacogenetics 13, 3–5 (2003).

    Article  Google Scholar 

  74. US Public Health Service. Mental Health: A Report of the Surgeon General [online], <http://www.surgeongeneral.gov/library/mentalhealth/home.html> (1999).

  75. Pirmohamed, M. et al. Adverse drug reactions as cause of admission to hospital: prospective analysis of 18,820 patients. BMJ 329, 15–19 (2004).

    Article  Google Scholar 

  76. Gasche, Y. et al. Codeine intoxication associated with ultrarapid CYP2D6 metabolism. N. Engl. J. Med. 351, 2827–2831 (2004).

    Article  CAS  Google Scholar 

  77. Higashi, M. K. & Veenstra, D. L. Managed care in the genomics era: assessing the cost-effectiveness of genetic tests. Am. J. Manage Care 9, 493–500 (2003).

    Google Scholar 

  78. Ingelman-Sundberg, M. Pharmacogenetics of cytochrome P450 and its applications in drug therapy: the past, present and future. Trends Pharmacol. Sci. 25, 193–200 (2004).

    Article  CAS  Google Scholar 

  79. Collins, F. S., Green, E. D., Guttmacher, A. E. & Guyer, M. S. A vision for the future of genomics research. Nature 422, 835–847 (2003).

    Article  CAS  Google Scholar 

  80. Evans, W. E. & Relling, M. K. Moving towards individualized medicine with pharmacogenomics. Nature 429, 464–468 (2004).

    Article  CAS  Google Scholar 

  81. Zineh, I. et al. Availability of pharmacogenomics-based prescribing information in currently approved drugs. Pharmacogenomics J. 4, 354–8 (2004).

    Article  CAS  Google Scholar 

  82. Kirchheiner, J. et al. Pharmacogenetics of antidepressants and antipsychotics: the contribution of allelic variations to the phenotype of drug response. Mol. Psychol. 9, 442–73 (2004).

    Article  CAS  Google Scholar 

  83. Klein, T. E. & Altman, R. B. PharmGKB: the pharmacogenetics and pharmacogenomics knowledge base. Pharmacogenomics J. 4, 1 (2004).

    Article  CAS  Google Scholar 

  84. Drug Information Association. Co–Development of Drug, Biological, and Device Products (meeting announcement) [online], <http://www.diahome.org>(2004).

  85. Feigal, D. W. & Gutman, S. in Pharmacogenomics: Social, Ethical, and Clinical Dimensions (ed. Rothstein, M. A.) 99–108 (John Wiley & Sons, Inc, New Jersey, 2003).

    Book  Google Scholar 

Download references

Acknowledgements

We are grateful for comments from D. Veenstra, University of Washington; B. Shen, Institute for the Future; A. Issa, University of California, Los Angeles; T. E. Klein, Stanford University; and C. R. Burrow, CardioDx. We are also grateful for contributions by S. Adams, University of California, Berkeley. This study was partially funded by an R01 grant to K.A.P.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Kathryn A. Phillips.

Ethics declarations

Competing interests

The authors declare no competing financial interests.

Related links

Related links

DATABASES

Entrez Gene

CYP2C19

CYP2D6

FURTHER INFORMATION

Cytochrome P450 Drug Interaction Table:

Genelex Corp.:

Pharmacogenetics Knowledge Base:

Roche AmpliChip CYP450:

Verispan:

Glossary

PHARMACOGENOMICS/PHARMACOGENETICS

We use these terms interchangeably to broadly mean the use of genetic information to guide drug prescribing.

ANALYTE-SPECIFIC REAGENT (ASR)

A commercial reagent for tests sold to laboratories conducting in-house tests.

COST-EFFECTIVENESS ANALYSIS

An analysis in which the costs and effectiveness of alternatives are compared using a ratio of incremental costs to incremental effect.

COST-OF-ILLNESS ANALYSIS

An analysis of the total costs incurred by a society due to a specific disease.

COST-MINIMIZATION ANALYSIS

An analysis in which costs are compared among alternatives assumed to have equivalent effectiveness.

COST–CONSEQUENCE ANALYSIS

An analysis in which costs and effectiveness are computed but not aggregated into ratios.

COST–UTILITY ANALYSIS

An analysis in which costs and effectiveness of alternatives are compared using the ratio of incremental costs to incremental quality-adjusted life years.

COST–BENEFIT ANALYSIS

An analysis in which costs and benefits are expressed in monetary terms and a net gain/loss or cost/benefit ratio is computed.

VALID BIOMARKER

A biomarker that is measured in an analytical test system with well-established performance characteristics.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Phillips, K., Van Bebber, S. Measuring the value of pharmacogenomics. Nat Rev Drug Discov 4, 500–509 (2005). https://doi.org/10.1038/nrd1749

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1038/nrd1749

This article is cited by

Search

Quick links

Nature Briefing

Sign up for the Nature Briefing newsletter — what matters in science, free to your inbox daily.

Get the most important science stories of the day, free in your inbox. Sign up for Nature Briefing