ESOTERIC TESTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Esoteric Testing Market Drivers

• Rising prevalence of chronic and infectious diseases: The rising prevalence of chronic diseases such as cancer, cardiovascular diseases, and neurological disorders is a major factor driving growth in the esoteric testing market. The global burden of chronic diseases is rapidly increasing. According to the World Health Organization, chronic diseases account for 71% of deaths worldwide. The early diagnosis of chronic diseases requires specialized esoteric tests such as genomic testing, molecular diagnostics, and oncology biomarker testing. These tests help in understanding disease prognosis, making treatment decisions and monitoring progression. The demand for esoteric tests is therefore rising for the diagnosis and management of chronic diseases.
• Technological advancements in esoteric testing: Recent advances in genomics, proteomics, metabolomics, and molecular diagnostics have expanded the scope of esoteric testing. Technologies like next-generation sequencing allow high-speed sequencing of genes enabling genomic testing. Mass spectrometry and flow cytometry enable the identification of proteins and biomarkers from samples. Automation has increased the efficiency of esoteric labs. Labs are adopting advanced software solutions for managing sample tracking, analysis, and result reporting. Big data analytics enables insights from large volumes of patient data. The integration of advanced technologies is enhancing the capabilities of esoteric labs and driving market growth. For instance, on June 20, 2023, Diatech Pharmacogenetics, an Italy-based leader in the development, production, and commercialization of pharmacogenetics tests for cancer, established a collaboration agreement with Janssen Pharmaceuticals NV, a pharmaceutical company, with the aim of improving access to precision medicine for patients with bladder cancer.
• Increased demand for personalized medicine: The shift towards personalized medicine is creating substantial demand for esoteric testing. These specialized tests analyze a patient's unique genetic makeup, biomarkers and protein profiles to determine targeted therapies personalized to the individual. Pharmacogenomics testing, for instance, identifies how a person's genetics affect his response to drugs enabling personalized therapies. The demand for companion diagnostics is also rising, which involves using esoteric tests to determine targeted therapies. The adoption of personalized medicine thus necessitates advanced esoteric testing services.
• Favorable reimbursement policies: Government and private insurance providers are increasingly including esoteric testing procedures under their coverage policies. Medicare and Medicaid have expanded reimbursement for a number of esoteric tests aiding market growth. Private insurers are also partnering with esoteric labs to provide affordable access to patients. Favorable reimbursement scenarios reduce the out-of-pocket expenditure for patients and improve accessibility to esoteric testing. This is expected to increase test volumes and revenues for esoteric labs.

Esoteric Testing Market Opportunities

• Emerging markets: Emerging economies offer significant growth opportunities to esoteric testing providers. The market in developing countries is currently underpenetrated but has high expansion potential. Factors like rising income levels, increasing health awareness and growth of medical infrastructure are expected to increase demand for specialized lab testing. Local governments are undertaking initiatives to improve access and establish advanced esoteric labs. Strategic expansion in high potential markets can enable companies to tap into a wider patient pool and achieve growth.
• Point-of-care esoteric testing: Point-of-care (POC) esoteric testing presents an exciting opportunity for market players. POC testing involves use of advanced rapid diagnostic tests near patient settings like physician clinics, hospital ERs and critical care units. POC tests enable quick turnaround times by eliminating transport of samples to central labs. Companies are developing innovative POC immunoassay, molecular assay and sequencing platforms. POC testing can help improve patient outcomes through rapid diagnosis. The integration of microfluidics, nanotechnology and mobility makes POC testing more efficient.
• Direct-to-consumer testing: The availability of direct-to-consumer (DTC) esoteric testing services also opens up growth avenues. DTC testing allows patients to access specialized tests directly without prescriptions. Consumers can order test online and get the results confidentially. DTC tests include nutritional, genetic, microbiome, sexual health testing etc. Companies are utilizing online channels and social media to increase awareness and drive DTC sales. DTC testing makes esoteric testing more accessible to general population.
• Strategic acquisitions: The esoteric testing market is witnessing increasing consolidation through acquisitions. Large biopharma corporations are acquiring esoteric testing providers to integrate diagnostics with drug development. Smaller niche companies are being acquired to gain competitive edge in genetic testing and oncology diagnostics. Acquisitions provide companies access to innovative technologies, expand test menus and enter new regional markets. Acquisitions thus represent an attractive growth strategy for market players to strengthen their capabilities and widen market presence.

Recent Developments

New product launches

• On June 21, 2023, Cardio Diagnostics Holdings, Inc, a pioneer in AI-driven precision cardiovascular medicine tests, announced the U.S. launch of PrecisionCHD. This groundbreaking test marks a significant milestone in the fight against coronary heart disease (CHD), the most common type of heart disease and the primary cause of heart attacks. It is the second product to be released from Cardio Diagnostics' cutting-edge suite of AI-driven molecular cardiovascular disease technologies.
• On June 20, 2023, Veravas, a leading innovator in clinical diagnostics, announced the launch of its groundbreaking VeraBIND (Biomarker Isolation and N-richment for Detection) technology. With millions of assays conducted daily in clinical laboratories worldwide, the search for specific biomarkers to identify early-stage diseases is becoming increasingly crucial. However, the inherent challenges posed by diverse patient sample types, including urine, saliva, and blood, can lead to false positive or negative results. VeraBINDing the sample during collection or preparation transforms complex samples into a matrix-free sample which enhances the performance of on-market tests and can allow healthcare professionals to realize a significant breakthrough in biomarker detection.
• On February 28, 2023, Cardio Diagnostics Holdings announced the launch of PrecisionCHD, an integrated epigenetic-genetic blood test for the early detection of coronary heart disease. PrecisionCHD is the second clinical test that uses its artificial intelligence (AI)-enabled Integrated Epigenetic-Genetic Engine. The test uses epigenetic (DNA methylation) and genetic (single nucleotide polymorphism) biomarkers with a machine-learning model developed by analyzing billions of genomic and epigenomic data points.

Acquisition and partnerships

• On July 12, 2023, BPGbio, Inc., a leading AI-powered biopharma that focuses on oncology, neurology and rare diseases, announced that the company has signed a collaborative agreement with Grupo Terralpe, Inc., a renowned private investment group based in Mexico City and Boston, Mass, U.S. Together, the companies will commercialize the pstateDx test, BPGbio's prostate cancer diagnostic test, in Mexico, U.S. BPGbio's pstateDx test is the first diagnostic product discovered by the company's AI-powered Interrogative Biology platform to be commercially launched. The pstateDx test is a non-PSA based, unique molecular diagnostic blood test that measures filamin A, a key biological driver of prostate cancer.
• On July 11, 2023, Alveo Technologies, Inc., a leader in molecular sensing and diagnostics with its proprietary be.well technology platform, launched a web-based partner portal and suite of enablement software tools to further drive innovative partnerships onto the platform to co-develop and commercialize rapid, point of need diagnostic solutions across multiple life sciences industry sectors. Furthermore, its newest partnership with the Fraunhofer Institute for Cell Therapy and Immunology IZI extends the platform into the large animal veterinary sector. The institute belongs to the Fraunhofer-Gesellschaft, the world's leading applied research organization.
• In February 2021, S.R.L. Diagnostics, a diagnostics chain with the largest accredited lab network, has linked an agreement with the U.S.-based Mayo Clinic Laboratories. The collaboration aims to facilitate initiatives between the two organizations to help physicians maintain lifelong knowledge and skills for safe clinical practice.

Esoteric Testing Market Restraints

• High costs and inadequate reimbursements: Esoteric tests are priced substantially higher compared to conventional lab tests which can hinder adoption. Complex esoteric tests often cost thousands of dollars depending on the technology and condition. Despite insurance coverage expansion, many payers have unfavorable reimbursement policies with lower payouts for esoteric testing procedures. Patients are left to bear a significant portion of testing costs leading to affordability issues. The lack of supportive reimbursement frameworks thus remains a key market challenge.
• Stringent regulatory guidelines: Companies offering esoteric testing services need to comply with stringent regulatory standards regarding quality control, accuracy, validation, etc. Regulatory agencies like Food and Drug Administration and Centers for Medicare & Medicaid Services have framed rigorous guidelines for the approval and monitoring of esoteric tests. The approval process for LDTs in the U.S. is anticipated to tighten further. Complex regulatory requirements lead to increased costs and longer times for test commercialization and impact profitability margins for labs. This can restrain the growth of the esoteric testing market.
• Shortage of trained professionals: There is a shortage of suitably qualified and trained staff for performing specialized esoteric tests. Technicians require extensive training in advanced molecular biology, genetics, bioinformatics, and clinical knowledge to accurately run and interpret the results of newer esoteric tests. Labs need to continuously educate their workforce regarding rapidly evolving testing technologies. The personnel constraint can lead to slower adoption of innovative platforms thereby restraining market expansion. Building specialized teams is essential for labs to scale up operations.