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Goldman Sachs: Is Curing Patients A Sustainable Business Model? [1]

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Date: 2024-12-20  

Headline says it all, needs little explaining. Goldman Sachs biotech research report states one shot cures based on genome therapy might cause cash flow to take a hit. Their report is a dry-eyed reality check about finances behind medical research.

“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.”

Hepatitis C is the case used to make the point. Therapy is so effective (90% cure rate) that sales reached their 12.5 billion zenith in 2015 and thereafter declined.

“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.” www.cnbc.com/...

The solutions cited in the report are:

1. address diseases/disorders with larger pool of patients

2. address disorders with high incidence rate

3. constant innovation

This Goldman Sachs report should start a conversation about making sure our tax dollars do still continue to fund research. That is only possible if the ultra-wealthy forgo tax breaks and start paying their fair share.

After all, as a society, do we want to collectively support medical research financially? Because that’s a part of what a functional government does, helps fund medical research.

If we want medical research to continue finding therapies for our own personal medical problems, we need to make sure that the wealthiest pay their fair share of taxes. THIS IS WHAT GOOD GOVERNMENT DOES.

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