4 ms·
Restaurants fail very differently from drug trials. They run at some % loss for a while until money or investor patience runs out. A drug trial that fails can
by tmnvdb 2y ago
Restaurants fail very differently from drug trials.
They run at some % loss for a while until money or investor patience runs out.
A drug trial that fails can be a 10 year process of shoveling money in a pit, none of it to be ever seen again.
It's a businesses famous for its low succes rates, which can be from start to end less than 1 in 100.
Drug companies need to offer those who provide the capital to run these experimental projects at huge losses for years a way to recoup their losses - otherwise nobody would be willing to fund the effort.
The way to do that is patent and charge absurdly high prices for those few succesfull drugs that are developed for as long as you can.
- ipaddr 2y agoSounds like a losing strategy for most customers and businesses Why not pool costs and split profits. Everyone gets less.. less risk, less losses, less profits.
- loeg 2y agoFewer drugs developed.
- lazide 2y agoWhy have only a single winner get the proceeds of getting a winning lottery ticket, when everyone could band together, buy all the tickets, and split the proceeds?
- heavyset_go 2y agoYou're describing mining pools and they're incredibly popular for their profitability compared to trying to find a winning lottery ticket on your own.
- lazide 2y agoCrypto != the lottery or drug development.
- tmnvdb 2y agoThat's already the case. This is why most drug companies are quite large. And investors spread their investments. Competing as a small startup is extremely hard compared in this field compared to for example software. Unless you're asking why there is not a single state-run drug company doing everything, in which the case the answer is scale has disadvantages, having some diverse set of companies in a space like this has advantages, and state run centralism has been debunked so many times I can't be arsed.