Permira: High price of oncology drugs is unsustainable

People are prepared to pay extremely high prices for the next ‘wonder product’ in areas like immuno-oncology products, Permira's Mubasher Sheikh tells Private Healthcare Investor.

Permira’s head of healthcare, Mubasher Sheikh, believes the prices of companies producing oncology and rare disease drugs may be set to fall as governments look to rein in rising costs.

Speaking to Private Healthcare Investor at the JPM Global Healthcare conference, Sheikh said that biotech remained a hot area for both corporate and private investment, but that prevailing high valuations might not last.

“The amount of money flowing into biotech remains huge and I think that will continue. The appetite for new therapeutics is stronger than I have seen for a long time.”

“Everyone is interested in innovation again, both in drugs and in medical devices.”

Sheikh said that at previous conferences, driving down the cost of business models had been the priority for most healthcare firms, but over the last couple of years, the emphasis had switched to seeking out companies producing potentially lucrative anti-cancer drugs.

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