Government, Healthcare Reform, and Non-Profits

Douglas Criscitello, Grant Thornton LLP
Ora Dar, Israeli Life Sciences Fund
Alan Eisenberg, Biotechnology Industry Organization (BIO)
Cliff Gibbons, Gibbons & Co. (Co-Chair)
Jonathan Gruber, MIT
Debbie Lucas, MIT (Co-Chair)
Usama Malik, LRN
Leslie Platt, Platt & Associates
Jon Retzlaff, American Association for Cancer Research
Roger Stein, Moody’s

Specific Questions to be Addressed

What role can the Federal government play in supporting and regulating CanceRX?

  • Federal guarantees would broaden the base of institutions that are able to invest in the megafund. What are the pros and cons of seeking federal government guarantees?
  • To secure federal guarantees, what changes might be in governance, structure, prior funding review and oversight etc.?
  • What types of non-guarantee assistance might the federal government provide?
  • What agencies should be involved? What is the role of NIH/NCI/NCATS/VA/DoD/HHS?
  • How will the SEC respond?

What roles could non-profits have in supporting CanceRX?

  • Would they participate as guarantors? What are the pros and cons of non-profit guarantees vs. Federal guarantees?
  • What types of non-guarantee support could they provide?
  • Which non-profits are most likely to lend support?

How are current and future government policy actions likely to affect the risk and returns to investors in the megafund?

  • What impact will the Affordable Care Act and other measures to bend the curve on health care cost growth have on the megafund business model?
  • How are government drug pricing models and payer policies changing in light of personalized medicine?
  • What will be the impact of regulatory changes/trends on the megafund model, e.g., clinical trial trends at the FDA, and what can/should a megafund do in response?
  • Will the success of CanceRX create political pressures to limit a megafund’s upside?