Every once in a while, I come across something that makes me wonder whether I'm completely delusional.
The Department of Health and Human Services recently announced it would wind down 22 mRNA vaccine development projects under the Biomedical Advanced Research and Development Authority, or BARDA, halting nearly $500 million in investments. This decision undercuts one of the most significant medical advances in decades, technology that could protect millions more from the threats ahead. This decision undercuts one of the most significant medical advances in decades, technology that could protect millions more from the threats ahead.
Here's some economist, public commenter kind of people:
Project Warpspeed was probably the most consequential and unqualified success of Trump's first term, and mRNA vaccines one of the most exciting medical advances of the 21st century. But this time, Trump 2.0's anti-vax HHS Secretary (Kennedy) is cancelling all federal funding for 22 active mRNA development initiatives. There just aren't enough facepalm gifs for all this stupidity. source
If these kind of claims are true, wouldn't it make sense for every health-tech investor on earth to throw money at this tech? If the mRNA revolution is going to cure cancer and all this stuff, that sounds pretty darn lucrative. If mRNAs are "one of the most significant medical advances in decade" and "one of the most exciting medical advances of the 21st century" how is it possible that removing government funding "kills" them?
In 2021, cancer-specific medical spending surpassed $187 billion worldwide source
Oncology Market Size to Exceed USD 521.60 Billion by 2033. source
Clearly, there is a lot of money to be made in "curing cancer," yet somehow the recent RFK decision to remove government funding is going to result in a massive setback. Why wouldn't it do the opposite? Instead of an investor (the US gov't) who doesn't seem to care that much about results, we are now going to have private investors who are highly interested in outcomes. Unless I completely misunderstand how markets are supposed to work, this should result in better results. What am I missing?