Chips, Clones, and Living Beyond 100: How Far Will the Biosciences Take Us?

5. The business of biomedicine

with Jim Austin¹

This chapter examines five important segments of the U.S. health system: pharmaceuticals, biotechnology, medical devices, medical diagnostics, and prevention/disease management (see Figure 5.1). While the first four are established segments, the latter—prevention and disease management—may rapidly evolve in the future. The dynamics of each segment can be a barrier to or a supporter of new technologies because they constitute the “playing field” on which future biomedical treatments will be developed. Our discussion focuses mostly on the United States because progress in the biosciences greatly depends on U.S. reimbursement, innovation, and regulatory conditions.

Figure 5.1 2007 U.S. revenues (billions) ...