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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: 2) by ElizabethGreene on Tuesday April 17 2018, @06:20PM
You've _assumed_ they can sell it for the same price in the rest of the world. That is not the case. Rich countries subsidize the poor ones.
Rerun your numbers again with 1/7th of the population* paying retail and the rest of the world getting it for free. Then check that against Gilead's annual reports.
* Justification for this number: (300 million americans+700 million europeans)/7 billion global population