The global in vitro diagnostics (IVD) market is expected to grow in 2012-2014 following a surge in Mergers and Acquisitions (M&A) deal values, an acceleration of companion diagnostics partnerships, and the emergence of new prospects for early detection testing, according to Diagnostics 2011, PwC's (New York, NY, USA) biennial review of the IVD sector.

Financial investors, life sciences research groups, clinical laboratories, and medical technology players are all entering the IVD market. Multibillion dollar IVD deals in first seven months of 2011 more than triple total M&A deal value from 2010 to more than US $15 billion.

Several companies are driving the development of a wave of new tests for early detection of major cancers. If the market adopts the concept of using noninvasive in vitro diagnostics for early detection, a major diagnostics or pharmaceutical company could move to acquire one or several of the promising new ventures in this field.

"The IVD sector has attracted exceptional levels of interest, especially reflected in the acceleration of companion diagnostics partnerships with pharmaceutical companies. This momentum will continue as long as innovation and growth prospects in key market segments, such as molecular and tissue diagnostics, remain strong, and rapid action is taken by stakeholders to create a favorable environment for sustaining such innovation, including pricing, regulatory pathways, clinical trial design, reimbursement, and drug-diagnostic value-sharing," said Loic Kubitza, director, pharmaceutical & life sciences advisory services, PwC Luxembourg, and author of the Diagnostics 2011 report.

PwC's Pharmaceutical, Medical Device and Life Sciences industry group is dedicated to delivering effective solutions to the strategic, operational and financial challenges facing pharmaceutical, biotechnology and medical device companies.

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