Defs - WEEK 2 - R&D

Market failure

situation where when market incentives lead to inefficient resource allocation or fail to adequately meet social needs.

Belyeler et al (2019) - neglected disease research

Neglected diseases

Diseases disproportionally affecting LMICs for which there are no commercial/financial incentives to produce treatments for.

Beyeler et al (2019)

Push incentive

Funds given to pharma companies to cover costs and risks during R&D to encourage them to innovate new treatments

Gamba et al. (2023) : grants, tax credits

Pull incentives

Rewards given to companies whose pharmaceutical innovation is successfully developed and marketed.

Gamba et al. (2023): prizes, advance purchase commitments

Delinkage

Separating financial rewards from sales volume of drug

Gamba et al. (2023): subscription model, innovation prizes

Dynamic efficiency

Creating incentives to encourage pharmaceutical companies to invest in R&D for future medical innovations

Gamba et al. (2023)

static efficiency

Ensuring existing treatments are made accessible and affordable to patients by not factoring in R&D costs into their price

Gamba et al. (2023)

R%D-to-sales ratio

R&D expenditures expressed as a percentage of drug sales

Seeding trials

Post-marketing study partially or primarily designed to promote the health product and its prescription. made to look like a scientific research endeavour

Gagnon (2023): promotional Phase IV studies

PPP = public-private partnership

Collaboration between public and private actors to achieve shared goals

Advanced purchase agreement

Commitment to purchase a product under specified terms and price, which reduces uncertainty of demand for manufacturers

Gamba et al. (2023)

Value-based pricing

pricing that attempts to reflect the therapeutic benefit or value of a medicine

Superiority trial

Clinical trial designed to demonstrate that one medicine provides greater therapeutic benefit over a comparable treatment on a specified outcome.

Therapeutic innovation

A new treatment offering a significantly better clinical intervention in comparison to existing alternatives