When I began blogging some 10 years ago, I was a conspiracy theory innocent and, like many Americans, looked askance at conspiracy theories.
By the way, did you know that the CIA concocted the “conspiracy theorist” label for the express purpose of attacking and discrediting people who questioned the official narrative about the Kennedy assassination? (Source)
After ten years of daily blogging, which requires me to be attuned to both mainstream and alternative media, I have discovered that, alarmingly, most conspiracy theories turn out to be true.
One conspiracy theory has to do with Big Pharma. From the mouth of Goldman Sachs, the multinational investment bank and financial services company, now comes confirmation of the suspicion that the pharmaceutical industry has a vested interest not in curing diseases, but in keeping people sick.
Tae Kim reports for CNBC that an April 10, 2018 Goldman Sachs report for biotech companies, The Genome Revolution, asks if curing diseases is “a sustainable business model” for pharmaceutical companies because, unlike long-term management of diseases (“chronic therapies”), “one shot cures” don’t deliver “recurring revenue” or “sustained cash flow”.
In a note to clients, Salveen Jaswal Richte, 40, vice president of Goldman Sachs’ research division, wrote:
“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. While this proposition carries tremendous value for patients and society, it could represent a challenge for genome medicine developers looking for sustained cash flow.“
For a “biotech expert,” it is interesting that Ms. Richte has only
I can’t help but wonder what Salveen Richte would do if her daughter comes down with a disease for which Big Pharma refuses to develop a “one shot cure” because it’s more profitable to keep her on a lifetime regimen of drugs?
As an example of unprofitable “one shot cures,” Richter cited Gilead Sciences’ treatments for hepatitis C, which achieved cure rates of more than 90%. 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.
Richte also points out the unprofitability of curing infectious diseases such as hepatitis C because it decreases the number of “carriers” — those infected with Hep C — who can transmit the virus to infect others:
“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.”
The report suggests three potential solutions to deliver the big bucks 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.”
I was involved in pharmaceutical litigation against big drug companies. This, or something similar, has been said thousands of times under oath by Pharma reps and their counsel. Money is made on treatment, not cures. They would bury cures & promote treatment in a NY second.
everybody with an infectious disease let’s cough on some napkins and mail em to Goldman Sachs
H/t FOTM‘s josephbc69
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