David Rosenthal: belief

Transcript context

…Yeah, that would fall more under process power, and frankly scale economies because it requires more capital. But right now, historically, pharma is a patent driven cornered resource industry. Yup. I think how this GLP-1 super cycle is going to play out if it continues, and what's interesting about the Insulin history and the analog to that, it's looking like it's going to be this ever stacking waves of patentable innovation and product innovation happening here. Yes, the Semaglutide patent will expire in 2032. But if CagriSema, their new next generation GLP-1 product shows the promise that they think it'll have, then that'll be a new patent cycle starting then, and then they'll develop the next generation, and it'll play out again just like Insulin. But yes, absolutely coordinated resource, for sure. Yup. The patents aren't just on the molecules, they also patent delivery mechanisms, so they keep changing delivery mechanisms. You basically have this scenario where doctors don't really want to prescribe the old thing. When you introduce a new novel form of a pen, oftentimes doctors will say, well, that's the thing we need to be prescribing now. There's a brand that gets built around the most current thing that's patented, even if it's not that much better than the old thing. There's a lot of people in pharma that are going to get mad at me for that characterization. But in addition to patenting molecules, delivery mechanisms also provide defensibility. One question I had was, there might be contractual things that entrench relationships too. When you get really big, and this would be a scale economy, are there contractual relationships with formularies that entrench you and make it so that even if someone else comes out with something similar to treat any given condition, and your patent isn't defending you because it's a different molecule, well, sorry, you've locked up a distribution channel with the PBM and getting on the formulary in such a way that like, good luck to anyone else.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.