As the alternative and social media revolution has begun to educate millions of people on the true potential of the human body to heal without drugs or surgery through pure food, herbs, and other healing modalities, the question has arisen: “Do pharmaceutical companies create cures, or are they simply creating customers?”
While modern medicine has created some promising therapies and treatments, a growing segment of the population has become wary of their empty promises, especially considering the billions in donations to “cure” diseases that still run rampant like breast and prostate cancer.
Now, a new report has surfaced from one of the world’s largest investment banks and the Biotech industry that has people talking — and strongly questioning whether or not the industry ever had our best interests at heart.
“Is Curing Patients a Sustainable Business Model?” Biotech Industry Report Asks
According to a report from the website CNBC, Goldman Sachs has attempted to answer a controversial question on behalf of the Biotech industry: “Is curing patients a sustainable business model?”
The question was asked in a report titled ‘The Genome Revolution,’ which focuses on new gene therapy treatments.
The new treatment could potentially heal and/or even cure multiple diseases if all goes according to plan, although skepticism surfaced following a (now retracted) study showing that these therapies may cause “hundreds of unintentional mutations” in the targeted organism.
But will it be consistently profitable, or harm the obscene profits being raked in by pharmaceutical executives in today’s day and age? That was the question on the minds of Goldman Sachs analysts.
“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 to clients the report according to CNBC.
“While this proposition carries tremendous value for patients and society, it could represent a challenge for genome medicine developers looking for sustained cash flow.”
A hepatitis C treatment that has been said to achieve cure rates of over 90 percent was specifically mentioned by the report.
The treatment reached $12.5 billion in sales in 2015 but dropped to less than $4 billion this year according to a table in the Goldman Sachs report.
It also went on to question the financial merits of using up the “pool of available of treatable patients,” even going as far to analyze what may happen to a company’s bottom line if the “number of carriers” and “incident pool” were to diminish.
From the article:
“GILD is a case in point, where the success of its hepatitis C franchise has gradually exhausted the available pool of treatable patients,” the analyst wrote.
“In the case of infectious diseases such as hepatitis C, curing existing patients also decreases the number of carriers able to transmit the virus to new patients, thus the incident pool also declines … Where an incident pool remains stable (eg, in cancer) the potential for a cure poses less risk to the sustainability of a franchise.”
Now that the report is out and a backlash is likely to ensue, the question is how the Biotech industry will respond.
Three different options were discussed as “potential solutions” for the Biotech firms going forward, all of which can be viewed in the full article from CNBC.