Choosing the right incentive strategy for research and development in neglected diseases
For the first time in history, worldwide neglected disease budgets may be large enough to deliver a new drug every few years. That said, sponsors will only succeed if they extract maximum value from every dollar spent. This paper reviews possible cost-containment strategies and provides an evidence-...
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| Format: | Article |
| Language: | English |
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The World Health Organization
2006-01-01
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| Series: | Bulletin of the World Health Organization |
| Online Access: | http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862006000500017 |
| _version_ | 1797282994571968512 |
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| author | Maurer Stephen M |
| author_facet | Maurer Stephen M |
| author_sort | Maurer Stephen M |
| collection | DOAJ |
| description | For the first time in history, worldwide neglected disease budgets may be large enough to deliver a new drug every few years. That said, sponsors will only succeed if they extract maximum value from every dollar spent. This paper reviews possible cost-containment strategies and provides an evidence-based framework for choosing between them. Current proposals can be categorized as "end-to-end" proposals which require the sponsor to set a single reward for companies that complete the entire drug discovery process or "pay-as-you-go" schemes in which sponsors offer repeated rewards as drug candidates progress through the pipeline. A generic weakness of end-to-end proposals is that rewards are likely to be 20-30% higher than they would be in an equivalent pay-as-you-go programme. However, the benefits of pay-as-you-go programmes may be lost if commercial pharmaceutical companies are substantially better at choosing successful programmes than are their non-profit counterparts. The efficiency of pay-as-you-go methods depends on sponsors" willingness to withdraw funding from failed drug discovery programmes. |
| first_indexed | 2024-03-07T17:22:31Z |
| format | Article |
| id | doaj.art-c91bf45a92ab480ba4181b13472c9f53 |
| institution | Directory Open Access Journal |
| issn | 0042-9686 |
| language | English |
| last_indexed | 2024-03-07T17:22:31Z |
| publishDate | 2006-01-01 |
| publisher | The World Health Organization |
| record_format | Article |
| series | Bulletin of the World Health Organization |
| spelling | doaj.art-c91bf45a92ab480ba4181b13472c9f532024-03-02T19:44:18ZengThe World Health OrganizationBulletin of the World Health Organization0042-96862006-01-01845376381Choosing the right incentive strategy for research and development in neglected diseasesMaurer Stephen MFor the first time in history, worldwide neglected disease budgets may be large enough to deliver a new drug every few years. That said, sponsors will only succeed if they extract maximum value from every dollar spent. This paper reviews possible cost-containment strategies and provides an evidence-based framework for choosing between them. Current proposals can be categorized as "end-to-end" proposals which require the sponsor to set a single reward for companies that complete the entire drug discovery process or "pay-as-you-go" schemes in which sponsors offer repeated rewards as drug candidates progress through the pipeline. A generic weakness of end-to-end proposals is that rewards are likely to be 20-30% higher than they would be in an equivalent pay-as-you-go programme. However, the benefits of pay-as-you-go programmes may be lost if commercial pharmaceutical companies are substantially better at choosing successful programmes than are their non-profit counterparts. The efficiency of pay-as-you-go methods depends on sponsors" willingness to withdraw funding from failed drug discovery programmes.http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862006000500017 |
| spellingShingle | Maurer Stephen M Choosing the right incentive strategy for research and development in neglected diseases Bulletin of the World Health Organization |
| title | Choosing the right incentive strategy for research and development in neglected diseases |
| title_full | Choosing the right incentive strategy for research and development in neglected diseases |
| title_fullStr | Choosing the right incentive strategy for research and development in neglected diseases |
| title_full_unstemmed | Choosing the right incentive strategy for research and development in neglected diseases |
| title_short | Choosing the right incentive strategy for research and development in neglected diseases |
| title_sort | choosing the right incentive strategy for research and development in neglected diseases |
| url | http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862006000500017 |
| work_keys_str_mv | AT maurerstephenm choosingtherightincentivestrategyforresearchanddevelopmentinneglecteddiseases |