Will medicine recover from the economics of drugs?

header_essay-468518687_masterIn a private report leaked to news outlets in April 2018, the Goldman Sachs analysts caution against investments in pharmaceutical or biotechnology companies aiming to develop outright cures. It’s a simple point to make – if profit is your goal, then a product that eradicates its own demand might not be a wise investment.

Though it sounds bad, it’s not a nefarious perspective. The overwhelming majority of pharmaceutical development occurs in the United States or other market economies abroad, where private industry is the force majeure that drives progress. And industry, as much in pharmaceuticals as in any other business, is at the game for revenue rather than the greater good. Much benefit can and has come from this arrangement, but it’s something of an externality to the powerful incentive to make money.

The predominance of the market in US healthcare has taken plenty of flak for promoting profit over quality, and for crescendoing costs.

Read the full article in Aeon

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