Why Does Biotech Ignore the Diagnostics Opportunity?

For the last two decades, diagnostics has been the poor stepsister of pharmaceuticals. But in the era of proteomics, diagnostics will come of age for those companies smart enough to exploit its two major market opportunities: diagnosing diseases which, caught early, can be successfully treated; and selling tests which can identify whether or not a specific drug will work for a particular patient. As their strategic options narrow--platform strategies are now virtually unfinanceable--those biotechs wearing pharmaceutical blinders are ignoring important paths to sustainability.