EPISODE 10- The Investor’s Paradox, Drug Development, & Price Controls
This episode features Peter Kolchinsky, Managing Partner at RA Capital Management, on the state of drug development and the investor's paradox.
Listen on any available podcast streaming platform:
Today’s guest describes drug development in the American healthcare market with the analogy of mortgages and rents.
People would rather pay higher mortgages because they are finite than pay rent indefinitely. Market-based pricing means that drugs will cost more until they become generic, whereas price control means paying rent forever.
In this episode, we interview Peter Kolchinsky, Managing Partner at RA Capital Management, LP and author of The Great American Drug Deal, about the state of drug development in the light of current events in policymaking.
In this episode, we discuss:
- The investor’s paradox and expecting drugs to fail
- Why the market, not the government, should steer drug development
- The mortgage vs. rent analogy
- Why insurance is essential to drug development
- How a trust in healthcare allows global society to function