• Business and biotechnology

Business and biotechnology

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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