Is the $2.1 Million Price Tag for Novartis' Zolgensma Ridiculous?

By tinkering with our genes, biopharma companies are making big breakthroughs that are revolutionizing how doctors treat disease. Last week, the Food and Drug Administration approved the latest of these game-changing therapies, Novartis‘(NYSE:NVS) Zolgensma, after it delivered remarkable results in infants with spinal muscular atrophy (SMA), a deadly genetic disorder. The potential to prevent death in infants by restoring the expression of a critical missing protein is a tremendous advance, but most of the media attention so far has focused on Zolgensma’s $2.1 million price tag. Is this price as crazy as it sounds?

In this episode of The Motley Fool’s Industry Focus: Healthcare, analyst Shannon Jones is joined by contributor Todd Campbell to explain why Zolgensma’s price might not be ridiculous.

Also, Jones and Campbell discuss how new gene therapies may also reshape treatment for hemophilia A patients by eliminating the need for weekly infusions of a missing coagulation protein. Does BioMarin‘s (NASDAQ:BMRNlatest data demonstrate that this approach is the future? Listen in to learn why investors’ view is mixed.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center. A full transcript follows the video.

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This video was recorded on May 28, 2019.

Shannon Jones: Welcome to Industry Focus, the show that dives into a different sector of the stock market every single day. Today is Wednesday, May the 29th, and we’re talking Healthcare. I’m your host, Shannon Jones, and I am joined via Skype by healthcare guru Todd Campbell. Todd, how’s it going? 

Todd Campbell: Oh, it’s going great, and I am just really, really excited to talk about some incredibly innovative, disruptive new medicines that could become available. I love these topics and I love doing these shows exactly for this reason. 

Jones: I am so on point

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