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Off Topic on Adult (=regenerative) cell technology, but very much related i.e. pills and drugs of which we do not know if they work
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TOPIC: Gilead

Gilead 23 Dec 2014 09:04 #2973

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Surprised no one picked up on the GILD story from yesterday where Express Scripts refused coverage of GILD's Hep C drug in favor of a cheaper competitor .
Back when it was possible to dream of the possibilities of Cytori cell therapy I thought eventually insurance companies would virtually insist on the cheaper and better benefits of what Cytori offered.
Then came the years of squandering :(

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Gilead 23 Dec 2014 12:44 #2974

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Centeno wrote an interesting article on the general topic-

We’re used to tech innovations at a break neck pace. Think about for a second that the first iPhone, which was really the first consumer smart phone, first appeared in 2007! Since then this little device has steadily evolved to change how we communicate, created a new genre of social media that has slain whole governments, and has enhanced our lives in countless ways. Yet, the pace of innovation in healthcare, when it comes to real changes in our lives, has progressed like a tortoise to the iPhone’s hare. The reason would be a surprise to most Americans, but the fact that the other largest tech company on earth, Google, wants no part of biotech should concern every living human. In addition, a deal cut this week to save healthcare dollars should concern every investor who has money in biotech.

Sergey Brin’s recent quote is telling. When asked if Google had plans to put more investment in healthcare (because it’s in pretty much every other market sector from robotics to self-driving cars), he said:

“Generally, health is just so heavily regulated. It’s just a painful business to be in. It’s just not necessarily how I want to spend my time. Even though we do have some health projects, and we’ll be doing that to a certain extent. But I think the regulatory burden in the U.S. is so high that think it would dissuade a lot of entrepreneurs.”

Brin was referring to a genetics start-up that Google backed called “23 and me”. The company wanted to offer cheap genetic testing with the goal to drive the technology to your smartphone. Imagine one day, your smartphone loaded with your genetic code, warning you that the drug you’re about to take has a 76% chance of harming your liver based on your genetics? However, the FDA killed 23 and me before it ever got close to that point.

These biotech regulation moves over the past 5 years have convinced many tech investors (who are the richest humans on earth), that biotechnology is a very risky place to put your money. Unlike tech, where all you need is a game changing idea and the perseverance and capital to see it through, in biotech there’s a regulatory burden that seems at times arbitrary and capricious. However, those few brave souls who did venture money in biotech have a new development this week to contend with-the trends in health insurance begun by the A.C.A.

What happened? Gilead Sciences developed a single pill that can cure 95% of hepatitis C patients in 8 weeks. The company spent hundreds of millions getting FDA approval. The alternative is a clunky and side effect laden regimen of pills sold by a competitor. However, because the older pack of pills is dirt cheap compared to Gilead’s new FDA approved solution, ExpressScripts (a discount pharmacy manager that makes deals with major insurers) just cut an exclusive deal to provide the cheaper alternative to the masses, leaving Gilead to compete in a consumer market with a price point manufactured by a regulatory apparatus that ensures the company financial ruin.


this is about half of the article - rest: Overregulated Biotech..Regenexx article
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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Gilead 23 Dec 2014 15:05 #2975

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Seems like a case of overblown proportions here. For example, Gilead has enormous margins on their drug and can compete with the substandard solutions on price fairly well. I never expected that Gilead would keep its margins. I guess (as always) those with lots of money (irrationally) DID.. this is why Gilead, despite the fall in stock price the last few days, is still trading at a 50% premium to where it was in May.

It's also why (irrationally) a huge amount of small to mid caps are down heavily today, including CYTX at -6.7%.

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