Every day, millions of people suffering from various chronic health conditions (such as hypertension, diabetes, heart disease, and mental health disorders) take medication that dramatically improves their quality of life. In many cases, the medication significantly extends their life expectancy as well. While most of us can see the importance and value of these drugs, there tends to be a lot of controversy and polarization around the process by which these medications get developed and made available to the people who need them.
Please watch this short video on what we call the “Investor’s Paradox,” narrated by Peter Kolchinsky, to get a glimpse into how biotech investors think about funding the drug development process:
We’ve all heard about greedy drug companies charging apparently obscene amounts of money for life-saving medication. And there have certainly been nefarious characters who have made headlines. But in reality, things are much more complicated. The costs of medication prior to going generic are often necessary and justified to pay for the cost of their development. But that doesn’t mean exorbitant costs should be passed on to patients. The way health insurance operates in the United States adds further complexity to the situation. (We’ll share much more on this in the coming chapters.)