When the FDA issued its first approval for a gene therapy for an inherited disease nearly a year ago—a cure for a type of blindness—it was heralded as breakthrough, a moment decades in the making. With dozens of other genetically engineered therapies moving through clinical trials, the long-promised era of personalized, gene-based medicine seemed to be at hand.
3 Business Models That Could Bring Million-Dollar Cures to Everyone
With the emergence of gene therapies that can cost $1 million for a one-time treatment, ss curing patients a sustainable business model?” As these treatments hit the market, industry leaders face a stark choice. These therapies could save or change lives, but they come at unprecedented cost. As their use grows, there seems to be no way traditional insurance models will be able to pay for them without breaking the bank or requiring patients to assume a big chunk of the cost. The solution will be in new business models, such as one where payments can be spread out over years and only continue if the cure appears to be permanent, or annuity-based business model where patients pay well in advance of need. New financial instruments may also apply, such as a bitcoin-enabled approach that incentivizes insurers to reimburse for preventative measures and costly one-time treatments by generating credit that they can trade like a bond. For the genetic revolution to truly pay off for patients as well as biopharma companies, leaders must put their innovation horsepower into creating new business models while they develop and test the therapies themselves.