Most large drug companies focus only on long-term, costly "biomarker" development with the goal of bringing new, targeted therapies to market, Scientia Advisors partner Amit Agarwal said in the current issue of the trade journal Pharmaceutical Executive.

A biomarker is any kind of molecule indicating the existence, past or present, of living organisms. When injected into the body, it can indicate whether an organ or a person's overall health is normal or not, which can then lead to personalized-medicine drug therapy.

But drug companies overlook the possibility that new diagnostics could increase revenues for their existing drugs and improve patient health, Agarwal said.

He suggested drug giants emulate smaller companies that market diagnostics as part of their pharmaceutical sales.

"Class leaders have the potential to gain great value by linking an already approved therapeutic (drug) to a diagnostic test," Agarwal said.

The diagnostic tools can help doctors detect disease earlier, test for possible reaction to taking a new medication and tailor a treatment based on the test results, he said.

This would minimize trial and error and adverse side-effects, he said.

Pairing diagnostics with therapies also lets companies enhance their relationships with prescribing physicians, Agarwal said.