Pharmacogenomics in Oncology: Unlocking Value, Safety, and ROI for Healthcare Systems

Updated on October 29, 2025
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The New Frontier of Personalized Cancer Care

In modern oncology, precision medicine is often equated with tumor genomics and targeted therapies – yet an equally important pillar is germline pharmacogenomics (PGx), which focuses on how a patient’s inherited genes affect drug response. By incorporating PGx testing, health systems can tailor drug dosing and selection to each patient’s genetic profile, ensuring that life-saving cancer therapies and supportive treatments are delivered more safely and effectively.

A key example is testing for variants in the DPYD gene, which controls production of the DPD enzyme that breaks down fluoropyrimidines – chemotherapy drugs that remain the foundation of treatment for colorectal, pancreatic, breast, bladder, and head and neck cancers. Due to these variants’ impact on drug metabolism, up to 30% of patients receiving fluoropyrimidines develop severe toxicity, and a subset suffer life-threatening complications or even fatalities. National and international guidelines now address DPYD testing and the US Food and Drug Administration (FDA) advises oncologists to discuss DPD efficiency prior to initiating therapy. More recently, the FDA updated Xeloda® (capecitabine) labeling to require DPYD testing before starting this chemotherapy medication.

Clinical and Financial Consequences of Ignoring Genetic Variability in Drug Response

The consequences of ignoring the relevance of PGx in the context of fluoropyrimidine treatment are substantial. In untreated DPD-deficient patients, more than 70% developed severe toxicities. Reducing doses by 50% in carriers of deleterious DPYD variants cuts the risk of severe toxicity by more than half, while maintaining survival outcomes.

The financial burden reinforces the argument. Hospitalizations for sepsis, mucositis, or severe hematologic complications can exceed $50,000 per episode, while a DPYD test costs less than $300. In gastrointestinal cancers, pretreatment DPYD testing reduced severe adverse events, treatment discontinuations, and modifications compared with standard care. The contrast in cost and outcome demonstrates the clear return on investment for health systems.

Extending Value Beyond Chemotherapy

The value of comprehensive PGx testing extends beyond fluoropyrimidines. Another chemotherapy drug, irinotecan, can increase the risk of neutropenia in the presence of other genetic variants. Preemptive testing enables oncologists to adjust doses and prevent costly complications.

Supportive therapies are equally relevant, as genetic alterations can affect responses to analgesics, antiemetics, and psychiatric medications – leaving some patients with poor symptom relief and others with heightened toxicity or side effect risks.

The value of PGx also extends into survivorship. Cancer survivors often need antidepressants, statins, anticoagulants, and cardiovascular drugs – each of which has well-established evidence-based PGx considerations and recommendations. Nearly 90% of cancer patients receive medications with PGx implications; a proportion greater than 63% of the general adult population.Furthermore, evidence from pediatric oncology indicates that 16% of patients would have benefited from PGx-guided adjustments, underscoring how results from a single test can inform therapy for years.

Evidence of System-Level ROI

Real-world studies confirm system-wide benefits of PGx testing – both in oncology and broader care. A randomized trial in polypharmacy patients showed that PGx-guided medication management using clinical decision support reduced re-hospitalizations by 50% and emergency department visits by 42% within 60 days. These findings highlight that a PGx strategy lowers healthcare utilization beyond oncology.Implementation trials also demonstrate feasibility in practice. A prospective study across three US cancer centers found that the median turnaround time for PGx testing was 10 days, with results available before the first cycle in most patients. When PGx-guided dose modifications were made, the incidence of severe adverse outcomes dropped substantially compared with historical controls.

From Barriers to Scalable Practice

Despite strong evidence for PGx-guided prescribing in cancer care, adoption has lagged. Common barriers include inconsistent reimbursement, limited clinician familiarity, and lack of seamless electronic health record integration. Yet these challenges are surmountable. Embedding PGx results directly into prescribing workflows with scalable and robust informatics infrastructure ensures clinicians act on them at the point of care in a timely manner. Education programs equip oncologists, pharmacists, and nurses with confidence in using results. Institutional champions help sustain implementation by aligning PGx testing adoption with organizational safety and quality goals.

A Long-Term Asset in Value-Based Care

Patients with cancer often require complex supportive care and survivorship management. Here, comprehensive PGx testing continues to deliver value long after chemotherapy. For healthcare executives and payers, comprehensive PGx should be viewed as a long-term asset rather than a short-term expense. One-time testing can inform prescribers’ decisions across a patient’s lifetime – spanning oncology, supportive care, and management of chronic morbidities or lasting complications. The cumulative savings are more substantial, combining avoided hospitalizations, reduced drug waste, and improved treatment continuity. 

A Pillar of Precision Oncology

The future of oncology will not be determined only by novel therapies, but also by how effectively healthcare systems deliver them safely and affordably. Comprehensive PGx testing in oncology care, anchored in proper use of anticancer medications but extending across multiple drug classes, provides a proven mechanism to reduce severe toxicity, preserve treatment efficacy, and control costs. Evidence shows that comprehensive PGx-guided prescribing prevents hospitalizations, maintains therapy continuity, and informs long-term survivorship care – all of which drive measurable ROI.

Cancer care has always balanced innovation with cost pressures. For oncology care organizations, investing in PGx is not about adding costs, but about reducing risks, strengthening safety, and aligning with value-based care. The infrastructure exists, the clinical outcomes are clear, and the return on investment is compelling. The time for routine PGx implementation in oncology care is now.

Houda Hachad
Houda Hachad, PharmD, M. Res.
Vice President of Clinical Operations at Aranscia

Dr. Hachad is a precision medicine executive with over 20 years of experience bridging clinical pharmacology, genomic, informatics, and healthcare innovation. As Aranscia’s Vice President of Clinical Operations (for their portfolio of brands, AccessDx Laboratory, 2bPrecise, YouScript, and Spesana), she leads initiatives that expand turnkey precision-medicine solutions. Her work focuses on aligning and integrating genomic testing, clinical decision support, and workflow optimization across health systems, laboratories, and payer networks. Earlier in her career, she worked at University of Washington where she co-developed a foundational drug-drug interactions and pharmacogenomic database (DIDB®), a knowledge repository that accelerates development decisions by integrating mechanistic insights, modeling support and regulatory-grade evidence to guide safe and effective drug development. A co-founder of Translational Software, Dr. Hachad has been instrumental in translating pharmacogenomic insights into scalable clinical applications. She served on the CPIC and PharmCAT Scientific Advisory Boards and is deeply engaged with the Pharmacogenomics ecosystem through roles in CPIC, PharmVar, AMP PGx, PGRN, and the STRIPE collaborative community. Recipient of the 2024 STRIPE Double Helix Award and 2022 PharmaVoice voice 100 “Tech Wizards” honor, she champions practical, equitable genomic adoption in healthcare.