BioCentury
ARTICLE | Strategy

Cures on loan

How MIT, Dana-Farber securitized loan model for high-cost drugs would work

March 7, 2016 8:00 AM UTC

Massachusetts Institute of Technology and Dana-Farber Cancer Institute researchers have proposed a model that seeks to alleviate the upfront cost of expensive new therapies for payers and patients. But unless companies share the risk, the idea might not have traction with the payer community.

In the Feb. 24 edition of Science Translational Medicine, Andrew Lo and colleagues proposed using securitized loans to pay for curative therapies with a short treatment duration. Lo is professor of finance and director of the laboratory for financial engineering at MIT Sloan School of Management. ...