Economic Viability of Cutting-Edge Genetic Treatments: Balancing Innovation and Fiscal Sustainability in India's Healthcare Sector

Abstract

Recent breakthroughs in genetic treatments offer unprecedented opportunities for addressing previously incurable conditions, but their astronomical costs present significant challenges to healthcare systems globally, particularly in developing economies like India. This comprehensive study conducts an in-depth economic analysis of three recently approved genetic treatments, meticulously comparing their long-term financial impacts with traditional care methods in the Indian healthcare context. Utilizing advanced economic modeling techniques and drawing from a diverse array of data sources including clinical studies, real-world evidence, and Indian health databases, we evaluate the treatments' cost-effectiveness, budget impact, and potential for long-term savings over an extended 30-year period. Our findings reveal a complex economic landscape: while these cutting-edge treatments require substantial initial investments, ranging from Rs. 10 crore to Rs. 18 crore per patient, they may offer significant long-term economic benefits in specific scenarios. The study goes beyond mere cost analysis, exploring the broader economic implications of these treatments, including their potential impact on workforce productivity, caregiver burden, and the development of India's biotechnology sector. We propose a comprehensive framework for assessing the economic sustainability of such high-cost treatments, taking into account both immediate budgetary constraints and potential long-term societal benefits. Furthermore, we discuss detailed policy implications for the integration of these treatments into India's healthcare system, emphasizing the need for innovative financing mechanisms, value-based pricing models, and adaptive health technology assessment methods. This research aims to provide policymakers, healthcare providers, and industry stakeholders with crucial insights to navigate the complex intersection of medical innovation and economic sustainability in the rapidly evolving landscape of genetic treatments.