Business Goldman Sachs asks in biotech research report: ‘Is curing patients a sustainable business model?’

CNBC | Archive

Tae Kim
PUBLISHED WED, APR 11 2018 3:15 PM EDT. UPDATED WED, APR 11 2018 7:20 PM EDT [this is an article from 2018]



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.”

Richter cited Gilead Sciences’ treatments for hepatitis C, which achieved cure rates of more than 90 percent. The company’s U.S. sales for these hepatitis C treatments peaked at $12.5 billion in 2015, but have been falling ever since. Goldman estimates the U.S. sales for these treatments will be less than $4 billion this year, according to a table in the report.

“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.”

The analyst didn’t immediately respond to a request for comment.

The report suggested three potential solutions for biotech firms:

“Solution 1: Address large markets: Hemophilia is a $9-10bn WW market (hemophilia A, B), growing at ~6-7% annually.”

“Solution 2: Address disorders with high incidence: Spinal muscular atrophy (SMA) affects the cells (neurons) in the spinal cord, impacting the ability to walk, eat, or breathe.”

“Solution 3: Constant innovation and portfolio expansion: There are hundreds of inherited retinal diseases (genetics forms of blindness) … Pace of innovation will also play a role as future programs can offset the declining revenue trajectory of prior assets.”

 

[MaryKullis]

IF YOU DON'T, SOMEBODY ELSE WILL. All it takes is one morally pozzed R&D worker to sell out to another company and they will put you under and bury you, or somebody else will just find cures themselves.

We've had computers revolutionizing everything for 40+ years now, but we are only getting sicker. Covid jabs were the latest greatest tech and look how well that worked out. I think you have way too much faith in medicine (and the people who fund/control it.) This seems to just be a hidden ad for big pharma. "We are so good at curing shit that we have to ask ourselves if we should be less good at it!!!" I think just being a farmer is probably way better for you than anything the experts have come up with - which is probably why there are almost no small farms left.

 

[Breadbassket]

You see, solving a problem isn't as profitable as dragging it out for eternity despite having the means to put an end to it right away.

 

[Otterly]

When you see people like this say things like this, and it makes you despair - remember there are people who have spent our entire lives trying to produce these platforms to treat and cure awful genetic diseases. Decades spent in the lab by thousands of people, their life’s work focused on making a platform that can cure multiple hideous disorders. Will their work get funded? Will it get the backing of one of the big companies to really push it to where it can be? Imagine being one of those people, and hearing this from the exec level. ‘Nah mate, line’s gotta go up, screw those kids.’

 

[Clotso Coof]

Reminds me of when a consulting firm working for Philips Morris submitted a report to the Czech Republic arguing that their people smoking saved the country money due to the early deaths:

Officials in the Czech Republic have been given an analysis, commissioned by the cigarette manufacturer, which suggests that the economic benefits of smoking to the country far outweigh the harmful effects. Rather than being a drain on healthcare resources, smoking actually saves the country more than £100m ($140m) a year because of the premature death of smokers, concluded the Massachusetts based consulting firm Arthur D Little International, which carried out the analysis.

It worked out that the early death of smokers saved the government up to £21.5m on health care, pensions, and housing for elderly people in 1999. The auditors also calculated how much the country spent on caring for people with smoking related diseases and the income tax lost when smokers die. Overall the net profit made by the government, including the revenues from tobacco tax, in 1999 came to £102.3m.

 

[Gorton Colu]

Are overly financialized societies a sustainable economic model?

 

[Otterly]

Reminds me of when a consulting firm working for Philips Morris submitted a report to the Czech Republic arguing that their people smoking saved the country money due to the early deaths:

I’ve heard this argued in the uk as well ; tax revenue plus early death saves money

 

[elite_club]

>companies will band together and not develop a cure to maintain a long term revenue stream

>companies only care about maximizing returns on a quarterly basis


Pick one, any company capable of developing a cure for a condition will analyze if the cost of developing it exceeds the profit potential of undermining the company that sells the treatment.

So sorry that you can’t cure tuberculosis, almost like the biggest influence on being killed by it is living in squalor as a society, so saving your ass is probably a net negative.

 

[cactus]

I learned the other day car insurance companies make more money declaring vehicles, even recent models, as totaled and parting out the pieces and forcing you to buy a new car than simply covering the costs for repairs, even if the specific damage is entirely surface detail.

This fucking shit happened to me. The repairs were less than half of what I was paid for the value for my car, and now I have a car payment I can barely afford, a smaller car, and no fucking built in cd player and just because I didn't have the money at the time, I thought I'd just be paying for the deductible. Fuck insurance companies.

 

[LemonMice]

The most Jewish company with the most Jewish name asks the most Jewish question.

Have we reached peak small hat?

Light among the nations! Incapable of horrific wrongdoing or unacceptable, transgressive political ambitions. Ashkenazi Jews have an IQ that's a SD above North Europeans, so they can economically and thus politically dominate other Europeans as well. There's other ways to economically dominate with a low IQ, but incompetency will make sure that regime just fails eventually.

NW european genetic elites kickstarted modern civilization, so they are obviously best suited to actually lead us through the struggles of civilization until the game is finally completed. Too bad those lineages are all drying up.

 

[JosephStalin]

Kwang Hui, please warm up the helicopter, you're flying left seat. Charlie, please fly right seat. Ken and Jan, please assist Pitor, the crew chief, after the rest of us have completed the special processing.

There's a special place in hell for those who would make people suffer when they could have been cured.

 

[Thiletonomics]

Luigi killing one asshole accomplished absolutely fucking nothing. The whole system is like this.

At this rate, even if someone were to re-create The Rumbling from Attack on Titan IRL and kill 80% of the World's Population, the whole system will somehow stay the same.

 

[Whoopsie Daisy]

We know this already. We know that it's cheaper to sell prevention than it is to sell the cure.

It's why so many people are hooked on sad-brain medication when the cure is simple. We don't teach the cure because there's no profit in it.

 

[Fatsuit Shinji]

At this rate, even if someone were to re-create The Rumbling from Attack on Titan IRL and kill 80% of the World's Population, the whole system will somehow stay the same.

That is why nothing less than a 100% kill score is going to fix anything. Although it is instead technically achievable killing every "Ford v Dodge" and line must go up motherfucker.

 

[The Connected Nose]

Light among the nations! Incapable of horrific wrongdoing or unacceptable, transgressive political ambitions. Ashkenazi Jews have an IQ that's a SD above North Europeans, so they can economically and thus politically dominate other Europeans as well. There's other ways to economically dominate with a low IQ, but incompetency will make sure that regime just fails eventually.

NW european genetic elites kickstarted modern civilization, so they are obviously best suited to actually lead us through the struggles of civilization until the game is finally completed. Too bad those lineages are all drying up.

Go suck kosher dick somewhere else you gigantic faggot. Or just kill yourself. That works too.

 

[FuckedOffToff]

Light among the nations! Incapable of horrific wrongdoing or unacceptable, transgressive political ambitions. Ashkenazi Jews have an IQ that's a SD above North Europeans, so they can economically and thus politically dominate other Europeans as well. There's other ways to economically dominate with a low IQ, but incompetency will make sure that regime just fails eventually.

NW european genetic elites kickstarted modern civilization, so they are obviously best suited to actually lead us through the struggles of civilization until the game is finally completed. Too bad those lineages are all drying up.

Jews score the highest on jew created intelligence tests - shock, shock, horror!
How in the hell can't they read the damn room, then?
Jews are great are fooling God, the actually intelligent human beings have a few questions though.
Let's start with the chicken thing - I mean really? Highly intelligent people believe that shit?
The Eruv? How much magical thinking are you calling intelligence?
We know, we just respect their clumsy "verbal iq" because we know they only survive on sufferance. They wear you down with bullshit.
Jeet tactics, gyppo behaviour, insufferable superiority complex.
World population of Jews is the same world population of redheads.
After WWII, you couldn't make jokes about stingy, souless Jews. So, Hollywood picked Scottish redheads instead.
Why?
Ain't no slave trade ever put a desirability premium on Jews.

 

[Larry David's Opera Cape]

analyst Salveen Richter wrote in the note to clients

https://www.linkedin.com/in/salveen-richter-934141/

https://www.facebook.com/salveen.richter/

Behold the face of the pajeeta-married-to-a-Jew who wants you and your loved ones to suffer as long as possible so she and her buddies can make more money:



Her pedo-looking husband, Mark Richter, also works in biotech investment:

https://www.linkedin.com/in/mark-richter-b0097494/

I thought the price estimate on their stupid condo was an error, but nope, straight from the realtor's website:

$4,580,000 | 28 Laight Street, Unit 2D, New York, NY 10013​

This spacious 3-bedroom loft at The Cobblestone Lofts offers the best in Tribeca luxury loft and condominium living. A perfect blend of classic loft elements with modern design, this massive 2,705 square-foot, L-shaped home with an especially large living and dining room features beamed-ceilings and extra-large eastern and northern casement windows, bathing the apartment in bright light and offering open exposures. Currently laid out as a 3-bedroom, it is easily converted into a 4-bedroom with an additional den, study or playroom area. The top-of-the line kitchen and informal dining nook form the heart of this cheerful and warm modern home. Wide plank floors, a wood-burning fireplace, central HVAC and laundry make this the ideal loft. Ideally set back on the quiet beginning of Laight Street, the aptly-named Cobblestone Lofts provides an ideal Tribeca location offering privacy, a graciously appointed lobby, a 24-hour doorman, a fitness center and a fully-furnished rooftop with One World Trade Center views and sunbeds.