I think Gladney sponsored investors will soon take it private for peanuts and sell the license. If we get around $2, we will be lucky. Time is very crucial. If they get insurance coverage, they have some leverage and price might go up, but still will be taken private/or sold. Current management don't have expertise to scale..
Melissa Martinson, president of the health economics consulting firm Technomics Research, says insurance companies might not rush to cover the treatment, even if it is highly effective.
“A lot of times insurance companies will claim they don’t consider cost when they make coverage decisions,” she said. “But most health economists and most people who work in the field don’t think that’s literally true.”
Aside from cost, insurers will consider safety and efficacy before approving something like VBLOC for people who are obese. Martinson says that defibrillating pacemakers, which are now common, faced similar hurdles when they were released.
And as for efficacy, that may be the toughest hurdle. William Dietz, director of the Redstone Center at George Washington University’s Milken Institute of Public Health, says obesity treatments have always struggled when it comes to maintaining weight loss. It’s still unknown if VBLOC’s effects will sustain over time or whether they will diminish.
“People are losing weight all the time, they just can’t sustain that weight loss,” Dietz said. “So we know the types of therapy available need to be long term.”
But the benefit of even a slight reduction in obesity has impacts on health. A five to 10 percent loss of excess weight can start to reverse high blood pressure, diabetes and other comorbidities.