A venture capitalist is launching a company today to create new drugs that mimic the effects of blockbuster drugs, and then sell them to insurers and hospital systems at a lower price, STAT reports.
Between the lines: The key question is whether insurers and hospitals will buy these new drugs over their competitors.
- Just because a drug is cheaper doesn't mean that it'll get prescribed more often. That's partly because patients and doctors don't really like to switch to a new, cheaper medication.
By the numbers: CEO and chairman Alexis Borisy said that the company, EQRx, has raised $200 million. He hopes it'll start developing around 50 different drugs over the next decade.
- Borisy's experience with starting drug and biotech companies is supporters' main reason for thinking this might work.
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