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One-shot cures for diseases are not great for business—more specifically, they’re bad for longterm profits—Goldman Sachs analysts noted in an April 10 report for biotech clients, first reported by CNBC.
The investment banks’ report, titled “The Genome Revolution,” asks clients the touchy question: “Is curing patients a sustainable business model?” The answer may be “no,” according to follow-up information provided.
[...] The potential to deliver “one shot cures” is one of the most attractive aspects of gene therapy, genetically engineered cell therapy, and gene editing. However, such treatments offer a very different outlook with regard to recurring revenue versus chronic therapies... While this proposition carries tremendous value for patients and society, it could represent a challenge for genome medicine developers looking for sustained cash flow.
[...] Ars reached out to Goldman Sachs, which confirmed the content of the report but declined to comment.
(Score: 4, Insightful) by frojack on Sunday April 15 2018, @08:16PM (1 child)
This is not about medical tourism or "its cheaper in Europe". You've TOTALLY missed the point.
Its about the cost of development and production of a drug that most people never need and a small percentage will need ONCE in their life.
Just because your government taxes the hell out of you and then gives you "free health care" doesn't solve this problem.
Pharma companies, big or small, won't want to spend the research money or maintain production lines for once-in-a-lifetime drugs.
You will have to find another funding model, or set up another government operation to buy up the patents, and manufacture these drugs, (or fund the developers or third parties to do so).
Look this is not the Red Car Line [99percentinvisible.org] conspiracy all over again. Its not a conspiracy at all.
Its just economics 101. You have to cover your costs. Even in socialist economies or purely communist ones, if something does not pay for itself somebody else has to pay for it somehow, or the producers will just walk away and become farmers or janitors. When that happens it won't be available in that heaven on earth called Europe either.
No, you are mistaken. I've always had this sig.
(Score: 4, Informative) by PartTimeZombie on Sunday April 15 2018, @09:38PM
No, no it's not. [sciencebasedmedicine.org] It's about profits. [npr.org]
It looks like the drug companies are OK with lying about their costs to justify the prices they charge.