October 18, 2019
Approved gene therapies have traditionally been brought to market by gene therapy companies, but they might have new competition in the near future from academic medical centers (AMCs). Already, those centers in some cases research, develop, test and administer gene therapies. But will they want to become more involved in this space?
HRI spoke with Gerald McDougall, a PwC partner and expert on gene therapy and AMCs, to hear his perspective on this emerging source of disruption. To read more about HRI’s perspective on gene therapy, please see “Beyond the Hype: Gene Therapies Require Advanced Capabilities to Succeed After Approval,” published last month.
What do you think is the appeal of gene therapy for healthcare providers? What is it that makes them want to compete in this space?
Approved gene therapies have traditionally been brought to market by gene therapy companies, but they might have new competition in the near future from academic medical centers (AMCs). Already, those centers in some cases research, develop, test and administer gene therapies. But will they want to become more involved in this space?
HRI spoke with Gerald McDougall, a PwC partner and expert on gene therapy and AMCs, to hear his perspective on this emerging source of disruption. To read more about HRI’s perspective on gene therapy, please see “Beyond the Hype: Gene Therapies Require Advanced Capabilities to Succeed After Approval,” published last month.
Hospitals can benefit from very lucrative medical revenues from gene therapies, but they’ll need to build clinical capabilities to do so first. Right now the early gene therapies are for the most part for very small indications and rare diseases. This isn’t a volume play for hospitals right now. But that could eventually change as more gene therapies enter the pipeline.
HRI: What about manufacturing? Do you see that as a core competency for providers in the gene therapy space?
Gerald McDougall: I do think that capability will be critical for a select group of players. I don’t think that’s going to be something that could be democratized across community-based health systems. Very few large, integrated delivery systems have the patients to justify that level of capital expenditure or ability to build up that expertise.
HRI: Is there a first mover advantage, or does a little bit of caution still make sense given the complexities and costs of gene therapy in this space?
Gerald McDougall: It’s a tough question. If you’re an innovative elite medical organization and a high-quality provider, you might need to provide gene therapies because it’s a brand play in your geographic region. It’s almost expected that you provide access to new technologies, so there’s going to be an expectation that you be an early adopter of gene therapies and curative innovations.
I think the biggest challenge to being an early adopter is the reimburse model. Government and private payers aren’t always aligned to what providers need to offer gene therapies. The cost associated with these therapies truly is an access issue.