Can Cultured Meat Save the Planet?
In September, California governor Jerry Brown signed a bill mandating that by 2045, all of California's electricity will come from clean power sources. Technological breakthroughs in producing electricity from sun and wind, as well as lowering the cost of battery storage, have played a major role in persuading Californian legislators that this goal is realistic.
Even if the world were to move to an entirely clean power supply, one major source of greenhouse gas emissions would continue to grow: meat.
James Robo, the CEO of the Fortune 200 company NextEra Energy, has predicted that by the early 2020s, electricity from solar farms and giant wind turbines will be cheaper than the operating costs of coal-fired power plants, even when the cost of storage is included.
Can we therefore all breathe a sigh of relief, because technology will save us from catastrophic climate change? Not yet. Even if the world were to move to an entirely clean power supply, and use that clean power to charge up an all-electric fleet of cars, buses and trucks, one major source of greenhouse gas emissions would continue to grow: meat.
The livestock industry now accounts for about 15 percent of global greenhouse gas emissions, roughly the same as the emissions from the tailpipes of all the world's vehicles. But whereas vehicle emissions can be expected to decline as hybrids and electric vehicles proliferate, global meat consumption is forecast to be 76 percent greater in 2050 than it has been in recent years. Most of that growth will come from Asia, especially China, where increasing prosperity has led to an increasing demand for meat.
Changing Climate, Changing Diets, a report from the London-based Royal Institute of International Affairs, indicates the threat posed by meat production. At the UN climate change conference held in Cancun in 2010, the participating countries agreed that to allow global temperatures to rise more than 2°C above pre-industrial levels would be to run an unacceptable risk of catastrophe. Beyond that limit, feedback loops will take effect, causing still more warming. For example, the thawing Siberian permafrost will release large quantities of methane, causing yet more warming and releasing yet more methane. Methane is a greenhouse gas that, ton for ton, warms the planet 30 times as much as carbon dioxide.
The quantity of greenhouse gases we can put into the atmosphere between now and mid-century without heating up the planet beyond 2°C – known as the "carbon budget" -- is shrinking steadily. The growing demand for meat means, however, that emissions from the livestock industry will continue to rise, and will absorb an increasing share of this remaining carbon budget. This will, according to Changing Climate, Changing Diets, make it "extremely difficult" to limit the temperature rise to 2°C.
One reason why eating meat produces more greenhouse gases than getting the same food value from plants is that we use fossil fuels to grow grains and soybeans and feed them to animals. The animals use most of the energy in the plant food for themselves, moving, breathing, and keeping their bodies warm. That leaves only a small fraction for us to eat, and so we have to grow several times the quantity of grains and soybeans that we would need if we ate plant foods ourselves. The other important factor is the methane produced by ruminants – mainly cattle and sheep – as part of their digestive process. Surprisingly, that makes grass-fed beef even worse for our climate than beef from animals fattened in a feedlot. Cattle fed on grass put on weight more slowly than cattle fed on corn and soybeans, and therefore do burp and fart more methane, per kilogram of flesh they produce.
Richard Branson has suggested that in 30 years, we will look back on the present era and be shocked that we killed animals en masse for food.
If technology can give us clean power, can it also give us clean meat? That term is already in use, by advocates of growing meat at the cellular level. They use it, not to make the parallel with clean energy, but to emphasize that meat from live animals is dirty, because live animals shit. Bacteria from the animals' guts and shit often contaminates the meat. With meat cultured from cells grown in a bioreactor, there is no live animal, no shit, and no bacteria from a digestive system to get mixed into the meat. There is also no methane. Nor is there a living animal to keep warm, move around, or grow body parts that we do not eat. Hence producing meat in this way would be much more efficient, and much cleaner, in the environmental sense, than producing meat from animals.
There are now many startups working on bringing clean meat to market. Plant-based products that have the texture and taste of meat, like the "Impossible Burger" and the "Beyond Burger" are already available in restaurants and supermarkets. Clean hamburger meat, fish, dairy, and other animal products are all being produced without raising and slaughtering a living animal. The price is not yet competitive with animal products, but it is coming down rapidly. Just this week, leading officials from the Food and Drug Administration and the U.S. Department of Agriculture have been meeting to discuss how to regulate the expected production and sale of meat produced by this method.
When Kodak, which once dominated the sale and processing of photographic film, decided to treat digital photography as a threat rather than an opportunity, it signed its own death warrant. Tyson Foods and Cargill, two of the world's biggest meat producers, are not making the same mistake. They are investing in companies seeking to produce meat without raising animals. Justin Whitmore, Tyson's executive vice-president, said, "We don't want to be disrupted. We want to be part of the disruption."
That's a brave stance for a company that has made its fortune from raising and killing tens of billions of animals, but it is also an acknowledgement that when new technologies create products that people want, they cannot be resisted. Richard Branson, who has invested in the biotech company Memphis Meats, has suggested that in 30 years, we will look back on the present era and be shocked that we killed animals en masse for food. If that happens, technology will have made possible the greatest ethical step forward in the history of our species, saving the planet and eliminating the vast quantity of suffering that industrial farming is now inflicting on animals.
Breakthrough therapies are breaking patients' banks. Key changes could improve access, experts say.
CSL Behring’s new gene therapy for hemophilia, Hemgenix, costs $3.5 million for one treatment, but helps the body create substances that allow blood to clot. It appears to be a cure, eliminating the need for other treatments for many years at least.
Likewise, Novartis’s Kymriah mobilizes the body’s immune system to fight B-cell lymphoma, but at a cost $475,000. For patients who respond, it seems to offer years of life without the cancer progressing.
These single-treatment therapies are at the forefront of a new, bold era of medicine. Unfortunately, they also come with new, bold prices that leave insurers and patients wondering whether they can afford treatment and, if they can, whether the high costs are worthwhile.
“Most pharmaceutical leaders are there to improve and save people’s lives,” says Jeremy Levin, chairman and CEO of Ovid Therapeutics, and immediate past chairman of the Biotechnology Innovation Organization. If the therapeutics they develop are too expensive for payers to authorize, patients aren’t helped.
“The right to receive care and the right of pharmaceuticals developers to profit should never be at odds,” Levin stresses. And yet, sometimes they are.
Leigh Turner, executive director of the bioethics program, University of California, Irvine, notes this same tension between drug developers that are “seeking to maximize profits by charging as much as the market will bear for cell and gene therapy products and other medical interventions, and payers trying to control costs while also attempting to provide access to medical products with promising safety and efficacy profiles.”
Why Payers Balk
Health insurers can become skittish around extremely high prices, yet these therapies often accompany significant overall savings. For perspective, the estimated annual treatment cost for hemophilia exceeds $300,000. With Hemgenix, payers would break even after about 12 years.
But, in 12 years, will the patient still have that insurer? Therein lies the rub. U.S. payers, are used to a “pay-as-you-go” model, in which the lifetime costs of therapies typically are shared by multiple payers over many years, as patients change jobs. Single treatment therapeutics eliminate that cost-sharing ability.
"As long as formularies are based on profits to middlemen…Americans’ healthcare costs will continue to skyrocket,” says Patricia Goldsmith, the CEO of CancerCare.
“There is a phenomenally complex, bureaucratic reimbursement system that has grown, layer upon layer, during several decades,” Levin says. As medicine has innovated, payment systems haven’t kept up.
Therefore, biopharma companies begin working with insurance companies and their pharmacy benefit managers (PBMs), which act on an insurer’s behalf to decide which drugs to cover and by how much, early in the drug approval process. Their goal is to make sophisticated new drugs available while still earning a return on their investment.
New Payment Models
Pay-for-performance is one increasingly popular strategy, Turner says. “These models typically link payments to evidence generation and clinically significant outcomes.”
A biotech company called bluebird bio, for example, offers value-based pricing for Zynteglo, a $2.8 million possible cure for the rare blood disorder known as beta thalassaemia. It generally eliminates patients’ need for blood transfusions. The company is so sure it works that it will refund 80 percent of the cost of the therapy if patients need blood transfusions related to that condition within five years of being treated with Zynteglo.
In his February 2023 State of the Union speech, President Biden proposed three pilot programs to reduce drug costs. One of them, the Cell and Gene Therapy Access Model calls on the federal Centers for Medicare & Medicaid Services to establish outcomes-based agreements with manufacturers for certain cell and gene therapies.
A mortgage-style payment system is another, albeit rare, approach. Amortized payments spread the cost of treatments over decades, and let people change employers without losing their healthcare benefits.
Only about 14 percent of all drugs that enter clinical trials are approved by the FDA. Pharma companies, therefore, have an exigent need to earn a profit.
The new payment models that are being discussed aren’t solutions to high prices, says Bill Kramer, senior advisor for health policy at Purchaser Business Group on Health (PBGH), a nonprofit that seeks to lower health care costs. He points out that innovative pricing models, although well-intended, may distract from the real problem of high prices. They are attempts to “soften the blow. The best thing would be to charge a reasonable price to begin with,” he says.
Instead, he proposes making better use of research on cost and clinical effectiveness. The Institute for Clinical and Economic Review (ICER) conducts such research in the U.S., determining whether the benefits of specific drugs justify their proposed prices. ICER is an independent non-profit research institute. Its reports typically assess the degrees of improvement new therapies offer and suggest prices that would reflect that. “Publicizing that data is very important,” Kramer says. “Their results aren’t used to the extent they could and should be.” Pharmaceutical companies tend to price their therapies higher than ICER’s recommendations.
Drug Development Costs Soar
Drug developers have long pointed to the onerous costs of drug development as a reason for high prices.
A 2020 study found the average cost to bring a drug to market exceeded $1.1 billion, while other studies have estimated overall costs as high as $2.6 billion. The development timeframe is about 10 years. That’s because modern therapeutics target precise mechanisms to create better outcomes, but also have high failure rates. Only about 14 percent of all drugs that enter clinical trials are approved by the FDA. Pharma companies, therefore, have an exigent need to earn a profit.
Skewed Incentives Increase Costs
Pricing isn’t solely at the discretion of pharma companies, though. “What patients end up paying has much more to do with their PBMs than the actual price of the drug,” Patricia Goldsmith, CEO, CancerCare, says. Transparency is vital.
PBMs control patients’ access to therapies at three levels, through price negotiations, pricing tiers and pharmacy management.
When negotiating with drug manufacturers, Goldsmith says, “PBMs exchange a preferred spot on a formulary (the insurer’s or healthcare provider’s list of acceptable drugs) for cash-base rebates.” Unfortunately, 25 percent of the time, those rebates are not passed to insurers, according to the PBGH report.
Then, PBMs use pricing tiers to steer patients and physicians to certain drugs. For example, Kramer says, “Sometimes PBMs put a high-cost brand name drug in a preferred tier and a lower-cost competitor in a less preferred, higher-cost tier.” As the PBGH report elaborates, “(PBMs) are incentivized to include the highest-priced drugs…since both manufacturing rebates, as well as the administrative fees they charge…are calculated as a percentage of the drug’s price.
Finally, by steering patients to certain pharmacies, PBMs coordinate patients’ access to treatments, control patients’ out-of-pocket costs and receive management fees from the pharmacies.
Therefore, Goldsmith says, “As long as formularies are based on profits to middlemen…Americans’ healthcare costs will continue to skyrocket.”
Transparency into drug pricing will help curb costs, as will new payment strategies. What will make the most impact, however, may well be the development of a new reimbursement system designed to handle dramatic, breakthrough drugs. As Kramer says, “We need a better system to identify drugs that offer dramatic improvements in clinical care.”
Each afternoon, kids walk through my neighborhood, on their way back home from school, and almost all of them are walking alone, staring down at their phones. It's a troubling site. This daily parade of the zombie children just can’t bode well for the future.
That’s one reason I felt like Gaia Bernstein’s new book was talking directly to me. A law professor at Seton Hall, Gaia makes a strong argument that people are so addicted to tech at this point, we need some big, system level changes to social media platforms and other addictive technologies, instead of just blaming the individual and expecting them to fix these issues.
Gaia’s book is called Unwired: Gaining Control Over Addictive Technologies. It’s fascinating and I had a chance to talk with her about it for today’s podcast. At its heart, our conversation is really about how and whether we can maintain control over our thoughts and actions, even when some powerful forces are pushing in the other direction.
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We discuss the idea that, in certain situations, maybe it's not reasonable to expect that we’ll be able to enjoy personal freedom and autonomy. We also talk about how to be a good parent when it sometimes seems like our kids prefer to be raised by their iPads; so-called educational video games that actually don’t have anything to do with education; the root causes of tech addictions for people of all ages; and what kinds of changes we should be supporting.
Gaia is Seton’s Hall’s Technology, Privacy and Policy Professor of Law, as well as Co-Director of the Institute for Privacy Protection, and Co-Director of the Gibbons Institute of Law Science and Technology. She’s the founding director of the Institute for Privacy Protection. She created and spearheaded the Institute’s nationally recognized Outreach Program, which educated parents and students about technology overuse and privacy.
Professor Bernstein's scholarship has been published in leading law reviews including the law reviews of Vanderbilt, Boston College, Boston University, and U.C. Davis. Her work has been selected to the Stanford-Yale Junior Faculty Forum and received extensive media coverage. Gaia joined Seton Hall's faculty in 2004. Before that, she was a fellow at the Engelberg Center of Innovation Law & Policy and at the Information Law Institute of the New York University School of Law. She holds a J.S.D. from the New York University School of Law, an LL.M. from Harvard Law School, and a J.D. from Boston University.
Gaia’s work on this topic is groundbreaking I hope you’ll listen to the conversation and then consider pre-ordering her new book. It comes out on March 28.