GENE THERAPY VERSUS PHARMACOGENOMICS: AN ECONOMIC EVALUATION ON CANCER DISEASES

By using the model of Danzon et al (2002) we try to analyze in terms of policy implications pharmacogenetics and gene therapy for cancer disease. We conclude that if private-sector increases the investments in gene therapy will obtain a socially sub-optimal solution due to high-cost and small sample of patients treated. On the contrary, pharmacogenetics can be socially optimal, particularly if the proportion of non responders is high and the cost of test is not expensive. However, our results underline that also in the case of pharmacogenetics the investments in R&D may be scarce and lead to a sub-optimal solution.