Montana’s Move: Establishing Itself as a Center for Experimental Medical Treatments and Economic Growth

Credit: Mater BIO

Context

Montana is making “headlines” with its recent legislative changes aimed at becoming a hub for experimental medical treatments, which could potentially transform its economy. The state has passed laws that not only make it easier for patients to access therapies not approved by the Food and Drug Administration (FDA) but also could eventually enable businesses to offer and profit from these experimental drugs, treatments, and devices. This move positions Montana as a potential leader in medical tourism and biotechnology innovation, with significant implications for its economy.

Overview of Montana’s New Laws

The “Right to Try Act,” which exists in over 40 states, allows terminally ill patients to access experimental treatments. However, Montana has taken this a step further. In 2023, Montana expanded its “Right to Try” law to allow any patient, not just those with terminal illnesses, to access experimental treatments. Furthermore, in May 2025, Governor Greg Gianforte signed Senate Bill 535, creating a framework for licensed treatment centers to offer these interventions. This means that businesses can now legally provide and profit from selling experimental treatments that have only passed Phase 1 clinical trials, which primarily test for safety rather than efficacy. According to the Wall Street Journal, this legislative framework is unique in its scope, as it allows companies to commercialize unapproved therapies, setting Montana apart from other states.

Interest from Biotech Companies

The new laws have attracted significant interest from biotech companies. For instance, Matter Bio, a longevity biotech, sees an opportunity to gather real-world data on its drug candidates while they are still in development, which could accelerate research and attract investor funding. CSBio, a contract manufacturer of custom peptides, is planning to establish manufacturing operations and open treatment clinics in Montana, drawn by the state’s new regulatory environment. The company’s CEO, Jason Chang, noted that treatments costing around $100,000 could be reduced by half by cutting overhead and treating more patients in Montana.

The Alliance for Longevity Initiatives, a lobbying group backed by longevity biotechs such as Retro Biosciences, played a key role in pushing for this legislation. Dylan Livingston, the group’s founder, reported that approximately 20 businesses, ranging from small biotech firms to medical-clinic operators, have expressed interest in operating under the new law. This influx of interest suggests that Montana could become a testing ground for innovative therapies, particularly in the fields of longevity and anti-aging.

Potential Economic Benefits

One of Montana's most significant potential benefits is the opportunity to become a hub for medical tourism. Medical tourism involves patients traveling to another country or state for medical care, often to access services that are unavailable or more affordable in their own country or state. According to the Deloitte Center for Health Solutions, inbound medical tourism to the U.S. generates approximately $5 billion annually from 400,000 patients. If Montana can attract even a small share of this market, it could experience considerable economic growth.

The establishment of experimental treatment centers and manufacturing operations could lead to significant job creation in the biotech and healthcare sectors. For example, CSBio’s planned operations could create jobs in manufacturing, healthcare delivery, and administration. The Montana BioScience Alliance emphasizes that the state’s bioscience organizations already contribute to creating high-quality jobs, and this new initiative could further amplify those efforts. Universities like the University of Montana, with its Montana Biotechnology Center, and Montana State University, with its Biotechnology program, are well-positioned to supply a skilled workforce to support this growth.

Globally, medical tourism has been shown to contribute to economic diversification and profitability by increasing employment, providing healthcare facilities with necessary resources, and boosting capital turnover. A study published by the National Center for Biotechnology Information notes that medical tourism can support economic development by driving demand for medical services and enhancing public health, which in turn promotes long-term economic growth. For Montana, this could mean direct revenue from healthcare services and indirect benefits, such as increased demand for hospitality and transportation as medical tourists visit the state. The state’s natural beauty and existing appeal as a tourist destination, known for activities such as fly fishing and hiking, could further enhance its attractiveness as a medical tourism hub.

Economic Impact

Potential Benefits for Montana

Job Creation

New jobs in biotech, healthcare, and related industries, such as manufacturing and administration.

Revenue Generation

Income from medical tourists seeking experimental treatments, potentially capturing a share of the $5 billion U.S. medical tourism market.

Investment Attraction

Increased interest from biotech firms and investors, fostering innovation and economic diversification.

Cost Reduction

Potential for lower treatment costs through increased patient volumes, making Montana a competitive option.

Workforce Development

Growth in biotech education and training programs is supported by institutions like the University of Montana and Montana State University.

Concerns and Criticisms

Despite the potential economic benefits, concerns remain about patient safety and the effectiveness of experimental treatments. Critics, including medical professionals and ethicists, argue that granting access to treatments that have only completed Phase 1 trials presents risks to patients, as these treatments may not be effective and could cause unforeseen side effects. According to a 2021 report from a biotech trade association, only about 8% of drugs that begin clinical development ultimately receive FDA approval, highlighting the high failure rate of experimental treatments.

State Representative Melody Cunningham, a former physician and medical researcher, expressed concerns that the law favors practitioners and clinics over patient safety. She voted against the bill, which narrowly passed the Montana House by one vote, warning that patients could be harmed by treatments that have not undergone thorough testing. Bioethicist Alison Bateman-House of New York University also strongly opposed the bill, saying, “I hate it,” citing the dangers of endorsing unproven treatments.

Furthermore, there are legal issues to consider. Lowell Schiller, the former acting chief counsel for the FDA, noted that if patients are harmed, the FDA could intervene, as the agency has previously taken action against businesses offering unapproved therapies. The lack of regulatory oversight compared to FDA-approved treatments could put Montana on uncertain legal ground, potentially discouraging some companies or investors wary of federal scrutiny.

Broader Implications

The push for alternative medicine and experimental treatments is not limited to Montana. Health and Human Services Secretary Robert F. Kennedy Jr. has advocated for increased access to alternative medicine, citing his experience traveling to Antigua for a non-FDA-approved stem-cell therapy for spasmodic dysphonia. His stance reflects a broader national and international interest in exploring experimental treatments, particularly in the fields of longevity and anti-aging. However, Montana’s laws are more expansive than those in other states, as they allow businesses to profit from experimental treatments, which could set a precedent for different regions.

Globally, countries like Thailand, India, and Mexico have established themselves as medical tourism hubs, often offering treatments at lower costs than in the U.S. Montana’s initiative could position it as a domestic option, reducing the need for Americans to travel abroad for experimental therapies. However, the state must navigate ethical and regulatory challenges to ensure its model is sustainable and fair.

Future Outlook

While the new laws mark a significant change, their full effects will take some time to be fully realized. Patients are unlikely to receive therapies under the new law before 2026, as the state’s health department needs to establish operating and safety standards for facilities. This period will be crucial for establishing the infrastructure and regulatory framework necessary to ensure that treatments are delivered safely and ethically.

If successful, Montana’s experiment could serve as a model for other states and countries seeking to strike a balance between innovation in healthcare and patient safety. The state’s existing biotech ecosystem, supported by organizations like the Montana BioScience Alliance and academic institutions, provides a strong foundation for growth. Additionally, the growth of the biotech sector could attract more investment and talent, positioning Montana as a leader in cutting-edge medical research.

Closing

We believe that Montana’s choice to become a hub for experimental medical treatments is a bold step into uncharted territory. The economic potential is significant, offering opportunities for job creation, increased revenue, and positioning the state as a leader in biotechnology and medical tourism. Still, these gains come with notable risks and ethical challenges that must be carefully addressed. As Montana advances its new laws, it will be crucial to closely monitor the outcomes, ensuring that patient safety remains a top priority while pioneering medical innovation.

References

Final Remarks  

This article and analysis result from a compilation of references and notes from various theses, authors, media, and academics, gathered by a group of friends from “Organizational DNA Labs.” We employed AI platforms, including Gemini, Open-Source ChatGPT, Grok, and Grammarly, to expedite research and ensure clarity and logical flow. Our goal in using these tools was to verify information across multiple sources and validate it through academic databases and collaborations with equity firm analysts.

The provided references and notes offer a comprehensive list of our sources. As a researcher and editor, I have meticulously ensured that proper citations and recognition are given to all contributors. The primary content stems from our compilation, analysis, and synthesis of these materials. Our summaries and inferences reflect a commitment to expanding and disseminating knowledge. While high-quality sources inform our perspective, the conclusion represents our current views and understanding of the discussed topics, which are subject to change through continuous learning and literature reviews within this business field.

 

Comentarios

Publicar un comentario

Entradas populares