[A2k] Nathan, Aligning pharmaceutical innovation with medical need

[Soenke Zehle]

Aligning pharmaceutical innovation with medical need
Authors: Nathan, C.
Produced by: Nature [journal] (2007)
<http://www.nature.com/nm/journal/v13/n3/pdf/nm0307-304.pdf>

This paper asks explores policies on how vaccines and medicines can be
developed to address the diseases facing the poor in the developing
world and how they can be made more accessible. The paper argues that a
fundamental solution to these problems requires aligning three basic
processes-innovation, incentive and access-so that they become mutually
reinforcing.

The present patent system provides incentives for innovation by
enforcing product monopolies that permit sales at prices far above
production cost. Industry has little financial incentive to develop
products for diseases that mainly afflict the poor, and the poor cannot
afford products that industry develops for wealthier customers. The
paper argues that two reforms could correct these disparities and
benefit all stakeholders:

* open-access drug companies would bring new ideas and expertise to the
development of drugs independent of market drivers

* a patent track that rewards innovation in proportion to its impact on
the global burden of disease would provide an incentive for pricing near
the cost of production and commit government and business to improving
health care delivery.

The paper puts forward a number or suggestions:

* the establishment of open-access drug companies through public-private
partnerships which would prioritise projects that offer hope of meeting
substantial medical needs that are not otherwise likely to be addressed

* establishing a government funding system which would reward
pharmaceutical companies who reduce the global burden of disease. Drug
companies would benefit as additional diseases became rewarding to treat
and new populations became medical consumers.

The paper concludes that through realigning research and development
funding, governments can re-aligned incentives through the patent system
which would contribute to the fight against global disease.