Personalized Medicine (PM) is a rapidly evolving field with significant opportunities for economic development as well as significant implications to the State's healthcare system. However, the role of the State government has not yet been defined.

Recognizing the business implications to California both as home to the emerging industries and the state government as a purchaser of healthcare services, the Business Transportation and Housing Agency has convened key stakeholders from the public and private sectors to solicit their input. Initial discussions amongst State agencies involved directly or indirectly with healthcare have highlighted the need to know more about how PM will affect the delivery and management of healthcare in California.

"California is a major purchaser of healthcare," said CCST Council Member David W. Martin, Jr., M.D., chairman and CEO of AvidBiotics Corporation. "The State is in a position to promote healthcare information technologies and engender public trust in pharmacogenomics, which is targeting medication based on genetic variations. But we need to conduct studies to determine the potential economic impact on healthcare, and the opportunities for the largest savings."

In general, PM refers to the tailoring of medical treatment to the personal characteristics of each patient. It does not literally mean the creation of drugs or medical devices that are uniquely suited to each patient, but rather the ability to classify individuals into subpopulations that differ in their susceptibility to a particular disease or their response to a specific treatment. Preventive or therapeutic interventions can then be applied to those who will benefit, sparing expense and side effects for those who will not.

It is pointed out in a recent report from the President's Council of Advisors on Science and Technology (PCAST), that the current high level of interest in PM from a policy perspective can be attributed not only to the promise of improved patient care and disease prevention, but also to the potential for PM to positively impact two other important trends - the increasing cost of health care and the decreasing rate of new medical product development. This is true at the state as well as the federal level.

As a result of a meeting of leaders in PM from the public and private sectors convened by BT&H in September, it was proposed that a mechanism for informing the State government of emerging risks, benefits and opportunities afforded by PM was needed. The field was growing rapidly and that it did not require state government intervention - market forces were sufficient to encourage involvement and growth of relevant businesses. However, the State government could play a significant role in accelerating the emergence of PM.

"California could lead the nation in PM policy as it has in climate change and energy," said Martin. "We just need to promote thoughtful policy and legislation as we proceed."