The Investor’s Paradox, Drug Development, & Price Controls w/ Peter Kolchinsky Making Medicine

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



As we continue this journey together, we want to hear from you, the listener. Email John@incubatecoalition.org or Ashlyn@incubatecoalition.org what’s top of mind, what story you want to hear, or what you find interesting!
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