When I first confronted my GERD stomach issues a few decades ago I had a choice: I could simply take an antacid pill each day for life or I could get surgery to fix it. The pill would’ve been easy, painless, and relatively inexpensive but I chose the surgery simply because I didn’t want to be dependent on Big Pharma.
This Golden Sachs analyst’s remarkable candor shows, in a nutshell, what’s wrong with a capitalistic health care system. What’s good for the patient is not always good for the investor. In fact, pretty frequently it’s not.
If you had any illusions about the true motivation of the medical industry you should now know the truth.
Wall Street greed is often why we can’t have nice things.
Goldman Sachs analysts attempted to address a touchy subject for biotech companies, especially those involved in the pioneering “gene therapy” treatment: cures could be bad for business in the long run.
“Is curing patients a sustainable business model?” analysts ask in an April 10 report entitled “The Genome Revolution.”
“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,” analyst Salveen Richter wrote in the note to clients Tuesday. “While this proposition carries tremendous value for patients and society, it could represent a challenge for genome medicine developers looking for sustained cash flow.”