This Company’s New Approach Could Slash Gilead’s Profit From HIV Drugs
Market leaders sometimes rest on their laurels and miss the next wave of innovation in their industries. The idea was captured in Clayton Christensen’s book, The Innovator’s Dilemma, and was applied to many companies that stuck to profitable lines of business and addressable markets, even though the industry was adopting a technology that ultimately became cheaper and better.
Although the “cheaper” part of that scenario doesn’t apply yet, gene editing could be getting ready to decimate the profits of Gilead Sciences (NASDAQ: GILD) and its most profitable drugs. A small private biotech has data showing that its use of CRISPR-Cas9 gene editing could potentially eliminate the need for patients — and those at risk — to take HIV drugs for the rest of their lives. If the clinical trials succeed, Gilead’s shareholders could be in big trouble. In fact, they might be in big trouble anyway.
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