No Heal - No Cure, is our AMA created medical system- Curing ANYTHING creates NO annuity revenues . Could cure cancer soon and medical system goes bankrupt !
Goldman Sachs Analyst: Curing Patients Not a Sustainable Medical
Business Model
April 14th 2018 Carey Wedler This article is copyrighted by GreenMedInfo LLC, 2018 Originally published on http://theantimedia.com
One of the most
reviled cos. in USA recently gave Americans yet another reason to distrust
their power: A recent Goldman Sachs report reveals the co. questioning whether
or not curing chronic illness is compatible
with a sustainable business model.
In an internal report viewed by CNBC about the potential of the biotech
industry and gene therapy titled “The Genome Revolution,” analysts asked: “Is
curing patients a sustainable business model?”
“The potential to deliver ‘one shot
cures’ is one of the most attractive aspects of gene therapy, genetically-engineered cell therapy and gene editing,” wrote analyst Salveen Richter. “However,
such treatments offer a very different outlook with regard to recurring revenue
versus chronic therapies,”analyst Richter wrote in the April 10 report. “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 a Hepatitis C drug manufactured by Gilead Sciences that achieved a
90% cure rate. As CNBC noted: “The
co’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.”
In light of the reduced profits as a result of the success
of the drug, Richter wrote:
“GILD is a case in point, where the
success of its hepatitis C franchise has gradually exhausted the available pool
of treatable patients. 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.”
Indeed, cancer is a highly profitable
disease. In 2015, the
world spent $107 billion on cancer drugs, and according to 2016 projections, that number was expected to grow to $150 by 2020.
Further, Gilead Sciences, which Richter singled out as a co. losing profits due to cures, was still the second-most profitable pharmaceutical/biotech co. in the world in 2017,
earning over $12 billion in net income.
Richter, who did not respond to CNBC’s request for comment, offered
several ideas to cope with the ‘problem’
of healing patients. He suggested
targeting large markets, such as those suffering from hemophilia, because “Hemophilia
is a $9-10bn WW market (hemophilia A, B), growing at ~6-7% annually.” in
addition, he advised clients to target disorders with high incidences, such as
spinal dystrophy, as well as focus on “[c]onstant innovation and portfolio
expansion.”
Additionally, Ars Technica reported, the analysis “hints that, as such cures come to
fruition, they could open up more investment opportunities in treatments for
‘disease of aging.’”
Goldman Sachs confirmed the authenticity of the report
to Ars Technica but declined to comment on its contents.
