What Mouli Cohen Has to Say About Biotech Drugs and Innovation

The FTC (Federal Trade Commission), in a recent report, proposed that the 12-14 years that are currently being allotted as a period exclusively for the innovation of products in biotech companies is much longer than required for the purpose.

The report also showed that the development of the generic biotech drugs could be a boon to the health care cost in the U.S. These drugs cost about 10-30%lesser than the conventional drugs in the market today.

The U.S. President, Obama, after the publication of the report, included in his talk to the AMA, the American Medical Association, that the introduction of generic biotech drugs could save the country enormous money. But no one knows how much that money will be and how fast it will be earned.

It is definite that the introduction of generic biotech drugs will be a boon to the economy but this boon is not quantifiable. Also, the biotech sector will undergo some changes that will be immeasurable according to the industry insiders.

According to Mouli Cohen, investor, entrepreneur, philanthropist and the founder of the Voltage Capital is of the view that this proposal shall make innovation less attractive. He believes that innovation and the capability of driving processes towards outcome that are quantifiable is what business is all about. And killing this process can reduce them to just mediocre players. He says that innovation is needed to run a business and there is no alternative to that.

PharmaTiles also pointed out the concerns that if generic biotech drugs come hastily into the market, then will biotech companies recoup their R&D investments?

Cohen states that R&D is very expensive and most of the pharmaceutical companies do not bother investing in R&D. The burden is then transferred to the academia and the biotech companies. AT the end of it, someone has to do the sponsoring. The costs will keep shifting but if any compensation is made and that turns out to be unfavorable, then the entire medical industry will suffer largely. This implies that the biotech sector will suffer some major problems in funding for R&D in the coming five years.

About two thirds of the funds go to the small biotech companies that earn no profits and which heavily rely on private investment.

If the proposal is implanted, then the impact of innovation will be greatly minimized. With these new regulations, the industry is going be subjected to rapid change though the new ideas and the products shall still be as solid as they were. Cohen suggests that care should be taken and consequences should be weighed before any action is taken.

Mike Casnet has been writing articles for 3 years. He like to write business, travel and health articles for different people. He is now developing his own webpage for clients who wants to try his service like Mouli Cohen