Gene therapy combines a reduced treatment duration with a higher chance of cure unlike conventional oncology treatments such as chemotherapy. However this novel therapeutic approach requires the delivery of genetic material to the patient, an uncharted territory in oncology which will necessitate the implementation of new regulatory guidelines and the restructuring of existing treatment algorithms in various oncology indications.

Volkan Gunduz, Senior Oncology Analyst comments:

"Ample opportunity remains in the oncology space for gene therapies. One of the most promising therapeutic strategies is developing combination regimens of gene therapies with immune checkpoint inhibitors. To this end significant opportunity exists as half of the Phase III pipeline is evaluated as a monotherapy and only one candidate is evaluated in combination with a checkpoint inhibitor."

The use of novel cancer gene therapies in combination with immune checkpoint inhibitors will provide more clinical benefit to cancer patients, increasing treatment durations significantly. The high cost of novel therapies and longer treatment durations are major factors that will increase the cost of care in the oncology space.

Gunduz continues:

"The concept of cancer gene therapy is not well established among payers and the already significant share of oncology in healthcare spending will prompt payers to come up with innovative approaches to contain the cost of novel cancer gene therapies. Payers point to the current lack of effective tools to contain the cost of newly approved oncology treatments."