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Predicting the likelihood of positive or negative response before trying the drug on the patient can potentially save his or her life. We are therefore interested in identifying distinctive subpopulations that respond differently to a given intervention. For this purpose, we have developed a novel technique, Intervention-based Clustering, based on a Bayesian mixture model. Compared to the baseline techniques, the novelty of our approach lies in its ability to model complex decision boundaries by using soft clustering, thus predicting the effect for individuals more accurately. It can also incorporate prior knowledge, making the method useful even for smaller datasets. We demonstrate how our method works by applying it to both simulated and real data. 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