"Most people's lifetime earnings do not reach the price of Kymriah"
Anthony Davies (otherwise known as our industry’s answer to Jeremy Paxman) probes Michael Meyers, Head of Investment Banking at T.R. Winston & Company, about how the astonishing prices of advanced therapies are going to be paid for and how risk should be responsibly managed.
Assuming quality-adjusted life years are sufficient, what approaches will be feasible and effective? Michael outlines his three ideas:
- The capital market, private sector and public sector need to work together – a combination of a structured financial approach that will be attractive to pension funds, hedge funds etc.; forming risk pools amongst different payers and a government backstop
- Value-based pricing – what if the next advanced therapy is not curative, what is the impact and value? If a treatment can take a young boy from DMD to BMD, while it’s not curative it is a huge advance
- Reinsurance – there are companies that reinsure risk from catastrophic risk to manufacturing sites and other property
Michael and Anthony go on to discuss amortised payments, securitisation of risk and jedi mind tricks…