02-08-2017, 02:21 PM
[quote pid='12589' dateline='1486577607']
This comment made me think...
[/quote]
Yeah, I've learned pretty quickly that biotech is the wild, wild west of investing in the healthcare sector. I'll continue holding what I've got, but going forward I think I'll focus more on the JNJ/BDX/ABT/SYK/BAX types rather than the drug companies.
This comment made me think...
Quote:Your comment is in jest but it has an important nugget of truth.
Yesterday, during the CC, the CEO said something like "we don't have a chronic patient base, so all our revenues come from new patient starts". English Translation: Our drugs are so powerful and useful they cure the sick person. If we had only developed slightly less powerful drugs that needed lifelong purchase, we could keep those "customers" paying us forever - and thus have more predictable revenue streams.
What a perverse profit incentive this gives drug companies - you are better off finding a therapy that people need to keep purchasing as opposed to finding a cure.
What a beleaguered industry this is, where the incentives are so perversely aligned and where you can invent a drug 20 years ago and keep collecting income from that for all that time.
GILD may be my first and last biotech investment.
[/quote]
Yeah, I've learned pretty quickly that biotech is the wild, wild west of investing in the healthcare sector. I'll continue holding what I've got, but going forward I think I'll focus more on the JNJ/BDX/ABT/SYK/BAX types rather than the drug companies.