Daily Reads

Wednesday Morning Healthcare Articles

Here is what I’m reading this morning in the world of healthcare:

  • A lot of uncertainty on how Brexit will effect companies and this is a great example – AstraZeneca to stockpile drugs as Brexit ‘safety net’ (Reuters)
  • With the advent of easily testing your DNA, people are finding that a DNA test can shatter your identity (The Atlantic)
  • How are health insurers balancing the high price tag for CAR-T therapy with need? It depends on the payer. Most commercial insurers are covering CAR-T therapies now, but they do so on an individual basis, writing single-patient agreements each time, said cancer experts (MedCity News)
  • Bill Gates Announces Further Investment In Alzheimer’s Research, Taking On Disease Detection (Forbes)
Daily Reads

Tuesday Morning Articles of Interest

It’s Tuesday and this is what I’m reading:

  • Recalls happen every day and cost a lot of money, there is a way to insure against that financial loss, but few companies know about it or insure against it – Teva Pharmaceuticals USA Issues Voluntary Nationwide Recall of Valsartan and Valsartan Hydrochlorothiazide Tablets (Business Wire).
  • 4 Regulations That Would Terrify U.S. Drug Companies Ahead Of The 2018 Midterms (Forbes).
  • Another stark warning over CRISPR/Cas9’s potential to do lasting harm dents share prices (Endpoints).
  • How medtech can prepare for the consequences of a “Hard Brexit” (Medical Design & Outsourcing).
Insurance · Life Sciences · Property Insurance · Risk Management

Why Milestone Payments Go Uninsured

Almost every day I read about a company receiving a milestone or grant payment, but sometimes milestones aren’t met and it is not for lack of science. I often wonder how a company would be affected if the milestone or grant were not received because of a fire or some other natural event rather than the science simply not working? Even worse, how would a company and its shareholders feel if they knew this financial loss could be covered by insurance?

For many life science companies these payments allow them to continue operations or avoid having to raise additional money that will dilute shareholders. The financial loss of a missed milestone due to an event that is insurable but not covered by your insurance policy is inexcusable. For R&D companies where there is no cash flow, a missed milestone could put you out of business or significantly impact operations. Sadly, many clients never have the conversation with their broker regarding this important coverage. As you look through the chart below, how deep of a dive have you and your broker done?

Milestone Flow Chart

Typically when I speak to new clients they have rarely gone deeper than the second question, “has your broker discussed what limit is appropriate?” Milestones and their applicable payment are usually well-known in advance so this is actually a rather straightforward coverage to determine the correct limit of insurance if the right questions are being asked. However, if you don’t know the coverage is available and your broker is not asking the correct questions it can turn into a costly coverage gap that is either uninsured or under-insured (limit is not adequate for the loss exposure).

If this is as deep as you have gone, what other coverage are you missing in your policy? If you think this is the only aspect of business income insurance commonly overlooked I am sorry to say you are mistaken. In future posts I will discuss other business income issues that are not often not covered properly or not covered at all.

If you have questions on whether your policy is correct, feel free to shoot me a message and I would happy to discuss.

Daily Reads

Monday Morning Reads

Here is what I’m reading as we kick off the workweek:

  • This Startup Is Developing Finger-Prick Blood Tests, But Don’t Call It Theranos 2 (Forbes)
  • The Week Ahead In Biotech: Conferences, Clinical Trial Results, IPOs and More (Benzinga).
  • Azar says ‘change is coming’ for 340B (BioPharma Dive)
  • This smartwatch with an Uber-like twist is aiming to transform emergency cardiac care (Med City News)
Daily Reads

Articles of the Week

Here is a collection of articles I have found both relevant and timely in respects to the life science and healthcare industry over the past week or so.

  • There are 503 pages in the new tax law – 12 of those pages could dramatically impact the Private Equity sector (The American Prospect)
  • Investment in Digital Health was $3.4B in the first half of 2018, a new record (Biopharmadive). Speaking of investments, over $100B has been spent so far on M&A activity in biopharma in the first half of 2018.  Here is a great rundown of all the deals that were announced (Biospace).
  • Will the data from the Biogen/Eisai Alzheimer’s trial pan out or is it really just a smoke screen (Forbes).
  • Medtech investing advice from the trenches (Medical Design & Outsourcing).
  • Millennial parents divided in their trust of healthcare AI. Confidence varied greatly between countries, particularly between Asian, where confidence is high, and Western countries (Verdict Medical Devices)
  • And so it continues…Biopharma IPOs gone wild: Highest amount ever raised as 14 companies join public ranks (Clarivate)
  • Earlier this week the Centers for Medicare and Medicaid Services withdrew its outcomes-based payment deal for Novartis’ CAR-T therapy, Kymriah, without public acknowledgement. Was this a missed opportunity (Rachel Sachs)?
  • Q&A with David M. Sabow, Group Head of Life Sciences for Silicon Valley Bank, Client Funds and Bank Products, on the investments being made in the biopharma space (SVB).

Let me know what you are reading by leaving a link in the comments section.

Daily Reads

Thursday Morning Reads

Good morning, here is what I’m reading today:

  • And so it continues…Biopharma IPOs gone wild: Highest amount ever raised as 14 companies join public ranks (Clarivate)
  • Not all news about Pfizer is about drug pricing, they will also be reorganizing into three distinct business units (BioPharma Dive).
  • Not all money is being raised on the public markets – Healthcare VC Investing Could Hit A Record High In 2018 (Forbes).
  • How value-based care and oncology come together in the healthcare ecosystem (MedCity News).
Daily Reads

Tuesday Morning Reads

Good morning and happy Tuesday.  Here is what I am reading this morning:

  • How United Technologies wants to use 3-D-printed lungs to end transplant shortages (MIT Technology Review).
  • T cell ‘backpacks’ boost immune attack against solid tumors in mice. These nanoparticle backpacks would attach to T cells and hopefully make it easier to translate to solid tumors (Fiercebiotech).
  • Millennial parents divided in their trust of healthcare AI. Confidence varied greatly between countries, particularly between Asian, where confidence is high, and Western countries (Verdict Medical Devices)
  • Theranos? Whatever. Healthcare Startups Have Raised $15 Billion So Far This Year (Forbes)