Deal by Cystic Fibrosis Foundation Raises Cash and Some Concern

[coffee_rules]

http://www.nytimes.com/2014/11/19/business/for-cystic-fibrosis-foundation-venture-yields-windfall-in-hope-and-cash.html?_r=0

But that funding, a total commitment of $150 million, has now paid off enormously. The foundation is to announce on Wednesday that it will receive $3.3 billion from selling the rights to the royalties to those drugs. That is 20 times the foundation’s budget last year. The payout is believed to be the largest financial return ever achieved for a charitable organization pursuing treatments for disease and is likely to encourage other patient advocacy groups to seek their own deals with pharmaceutical companies; a growing number are already doing so. Proponents say it speeds drug development while also providing potential monetary rewards that can pay for even more research. But there is some concern that a profit motive could divert the organizations from their primary mission — helping patients — and create a conflict of interest. For instance, the price of the main drug developed through Cystic Fibrosis Foundation’s investment is $300,000 a year.

I used to donate to this charity because they called up couple of times and sent some address labels etc. Now, with the funding of research (from the money gained by philanthropy), they have made a billion dollar deal. This will start a trend of most foundations opting to cash out in the Billion dollar medicine industry. Nevertheless, Most people (me including) will stop sending them their hard earned money! :(( I want a check back from them!

[diga]

dangerous precedent.. will increase the royalties paid towards the drug, affecting the end user. Lets hope the billions are spent on reducing the cost of treatment.. ps: @Coffee: you should demand 20 times your contributed amount :--D

[coffee_rules]

^ true. That's what happens in Capitalism without any regulation of ethics. Que Moth2Flame!