The early biotech industry thrived on a combination of hope and hype while diagnostics, which evolved using many of the same tools, was traditionally viewed -- and priced -- almost as a commodity. Now we're seeing the advent of complex, high-value diagnostics. As the techniques underlying tests increase in their biological complexity and the knowledge base of their developers about specific disease areas deepens, is the value proposition becoming more biotech-like?

The early biotech industry thrived on a combination of hope and hype while diagnostics, which evolved using many of the same tools, was traditionally viewed -- and priced -- almost as a commodity. Now we're seeing the advent of complex, high-value diagnostics. As the techniques underlying tests increase in their biological complexity and the knowledge base of their developers about specific disease areas deepens, is the value proposition becoming more biotech-like?

The availability of novel assay platforms represents a tipping point for diagnostics' adoption in the markets for translational medicine, esoteric testing, and high-complexity labs. Platform companies may be accustomed to defining their business strategies in terms of maximizing instrument placements but this may not be the optimal path to commercial success for a novel diagnostic test. They need to develop "category-killer" tests--those that combine platform and diagnostic content to offer a compelling clinical value proposition.