The Ultimate Joint Venture Between Biz and Government

On December 13th, Obama signed into law the 21st Century Cures Act. It enacts significant investments for innovative technologies and research to positively impact patients… undoubtedly through some of the healthcare companies in our portfolio and the many others we follow as well. It represents the ultimate joint venture between academia and business, as educators and researchers partner their interdisciplinary expertise with big business, to “take it to market” – to create tools that will empower R&D and provide diagnostics, therapies, and resources to address some of the world’s greatest healthcare challenges.

The Cures Act includes:

  • A $1.8 billion investment in The Cancer Moonshot initiative
  • $3 billion for the BRAIN and Precision Medicine initiatives
  • $1 billion to combat the heroin and prescription opioid epidemic

The goal is to fast-track advances in biomedical research, cancer prevention, diagnosis, and treatment; to tackle devastating illnesses and diseases like Alzheimer’s; and to provide awareness, solutions, and resources for prescription drug abuse and serious mental health issues.

Source: https://www.whitehouse.gov/blog/2016/12/12/3-letters-explain-why-president-obama-signing-cures-act

Specifically, it will provide funding to create research models (to find cures and target treatments), to support prevention and diagnostic tools (like cancer vaccines and novel detection tools), and to deliver effective treatments (through immunotherapies, pediatric cancer interventions, and tailored treatments).

In Sickness and Wealth has covered many healthcare companies vital to advancing these goals (see issues on The Immuno-oncology Race (Bristol-Myers Squibb, Merck, and Roche), Next Generation Gene Sequencing (Illumina and Pacific Biosciences), Genomic Editing (Editas and Intellia), Lab Diagnostics (LabCorp and Quest), The Diabetes Pandemic (Novo Nordisk, Merck, Sanofi, and Eli Lilly), and Interventional Cardiology (Edwards Lifesciences and Medtronic)… as well as providing insights on Investing in the Healthcare Sector (using mutual funds and ETFs), Building  a Healthcare Portfolio One Stock at a Time, Risks and Rewards of Selling Puts, and the Pharmaceutical Supply Chain.

Naturally, The Cure Act is of interest to a great many due to funding and all the potential it holds. Since success equates to not only better patient outcomes and improved quality of life, but also to financial gain for the companies that “win,” it’s a great motivator and holds promise to deliver dividends to investors and to humanity. (See When Venture Capital Meets Philanthropy and How Revlon and Lilly Tartikoff Rescued Herceptin from the Abyss.) With imperatives to innovate, to cure, and to prosper, we will be watching its impact closely.

Due to the holidays and time off, our next issue will be published January 10th. We hope you join us in the New Year as we Learn, Invest, and Empower…

Leave a Reply