4 ms·
It probably wouldn’t have much of an impact on the sales or marketing of this product, but it’d definitely have significant impacts on drug manufacturers’ futur
by nickff 3y ago
It probably wouldn’t have much of an impact on the sales or marketing of this product, but it’d definitely have significant impacts on drug manufacturers’ future plans (by reducing expected ROI & discouraging the development of ‘marginal drugs’).
- Eisenstein 3y agoWould it? Drug manufacturers don't really do as much 'R&D' as we assume, they buy biotech companies that have already discovered drugs. Also, why would a company stop wanting to make money? 'We are only going to make $5billion instead of $15 billion, let's not bother with that one.'
- hackerlight 3y ago> 'We are only going to make $5billion instead of $15 billion, let's not bother with that one.' Well, yes. If there's a 10% chance of success, these differences matter. Decision making happens at the margin.
- Eisenstein 3y agoHow would they know how much one drug would make vs the other while in the research phase?
- hackerlight 3y agoPrivate capital doesn't get allocated based on omniscience of future outcomes. It's about approximations of risk to reward in an environment of uncertainty. If you add risk or reduce reward of biotech, you get less private capital in biotech. Investors will allocate in other sectors with better risk to reward.