Personalized medicine challenges the traditional diagnostic business models. Some, usually new entrants, seek to develop proprietary diagnostics with value-based margins. Others seek to leverage their installed instrument based and large test portfolio for a contract diagnostic development model. This talk will explore the two predominant business models and suggest possible alternatives that combine the distribution and instrument installed base advantages with the value based attitude of
the new entrants. Such business models, however, present management culture and investment hurdles that may prove too high for all but a few players to overcome.

• Highlight the two major diagnostic business models for Targeted Therapies and their current challenges
• Suggest alternative business models with their benefi ts to the players and system
• Help decision makers see the distinct business model choices confronting them individually and collectively with the incumbent implications for organizational change, operational risk and financial reward