[Ip-health] ] Nathan, Aligning pharmaceutical innovation with medical need

[Michelle Childs]

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Begin forwarded message:

> From: Soenke Zehle <s.zehle@kein.org>
> Date: 13 April 2007 13:06:08 BDT
> To: a2k@lists.essential.org
> Subject: [A2k] Nathan, Aligning pharmaceutical innovation with
> medical need
>
> 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.
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Michelle Childs
michelle.childs@cptech.org