Goldman Sachs: Curing Patients’ Illnesses Is Bad for Business
April 13, 2018
In a recent report for its biotech clients, investment bank Goldman Sachs frowned on a new type of genome therapy that could permanently cure disease.
As CNBC originally reported, Goldman Sachs published a report on April 10 called “The Genome Revolution,” which evaluated the question, “Is curing patients a sustainable business model?” Analyst Salveen Richter explained that new forms of long-term cures involving gene therapy may be good for humanity, but bad for capitalism.
“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,” Richter wrote. “While this proposition carries tremendous value for patients and society, it could represent a challenge for genome medicine developers looking for sustained cash flow.”
In the report, Goldman Sachs pointed to pharmaceutical giant Gilead Sciences, which makes Harvoni — a hepatitis C treatment. Harvoni has been proven to