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

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 failWhy the market, not the government, should steer drug developmentThe mortgage vs. rent analogyWhy insurance is essential to drug developmentHow a trust in healthcare allows global society to functionAs we continue this journey together, we want to hear from you, the listener. Email [email protected] or [email protected] what’s top of mind, what story you want to hear, or what you find interesting!To hear more interviews like this one, subscribe to Making Medicine on Apple Podcasts, Spotify, or your preferred podcast platform.Listening on a desktop & can’t see the links? Just search for Making Medicine in your favorite podcast player.