Reimagining pharmaceutical innovation | Thomas Pogge at TEDxCanberra

Summary

The speaker addresses the flawed pharmaceutical industry, advocating for a reimagined system based on three principles: universal access to essential medicines, innovation targeting the most damaging diseases, and overall system efficiency. They introduce the Health Impact Fund, a novel incentive mechanism rewarding pharmaceutical companies based on the health impact of their medicines, rather than profit-driven mark-ups. This scheme aims to align industry goals with global health needs, ensuring equitable access and focusing on impactful research.

Takeaways

• 😷 The speaker emphasizes the importance of access to affordable medicine for maintaining health, contrasting it with the high costs of alternatives like hospitalization and operations.
• 🔬 The pharmaceutical industry is acknowledged for its role in developing medicines but is criticized for its lack of popularity and being compared unfavorably to tobacco and arms companies.
• 💡 The speaker proposes three main principles for organizing the pharmaceutical industry: universal access to important medicines, innovation focused on the most damaging diseases, and system efficiency to minimize waste.
• 🌐 The current system is criticized for failing on all three counts: lack of universal access, misaligned innovation focus, and inefficiency with money wasted on lobbying, litigation, and marketing.
• 💊 The high cost of medicines under patent is highlighted as a barrier to access, with pharmaceutical companies accused of pricing for the rich and neglecting the poor.
• 🔄 The concept of the '10/90 gap' is introduced, illustrating the mismatch between research funding and the global burden of disease, with more money spent on less damaging diseases.
• 💰 The unequal distribution of global income is identified as a driver of the industry's focus on wealthy markets, with the bottom half of the world's population having minimal income.
• 📉 The inefficiency of the pharmaceutical industry is further discussed, with funds being spent on lobbying, litigation, and marketing rather than on research and development.
• 🤝 The Health Impact Fund is introduced as a proposed solution, offering a new reward system for pharmaceutical innovation based on the health impact of medicines rather than profit margins.
• 💼 The Health Impact Fund would work with a fixed reward pool, rewarding medicines for their health impact over a ten-year period, after which the medicine would become generic.
• 🌟 The potential benefits of the Health Impact Fund are outlined, including aligning innovation with global health needs, providing a new market for innovators, and improving access to essential medicines for all.

Q & A

What is the main issue the speaker discusses regarding the pharmaceutical industry?

The main issue discussed is the lack of universal access to medicines, the misalignment of pharmaceutical research with the most damaging diseases, and the inefficiency of the system with significant funds wasted on non-productive activities.

Why are medicines expensive during the time they are under patent?

Medicines are expensive under patent because pharmaceutical companies have a temporary monopoly, allowing them to price for the rich, which often results in high mark-ups and excludes the poor from access.

What is the '10/90 gap' mentioned in the script?

The '10/90 gap' refers to the disparity where only 10% of pharmaceutical research funding is allocated to diseases that account for 90% of the global burden of disease, while 90% of the funding is spent on diseases that represent only 10% of the global burden.

How does the distribution of global household income affect pharmaceutical research priorities?

The unequal distribution of income influences pharmaceutical companies to focus on diseases and treatments for the wealthier segment of the population, as they are more likely to afford and generate profit from these medicines.

What are some of the wasteful activities in the pharmaceutical industry that the speaker mentions?

Wasteful activities include lobbying politicians to extend patent periods, paying generic companies to delay entry, litigation between companies, and excessive marketing campaigns to win favor with doctors and patients.

What is the Health Impact Fund proposed by the speaker?

The Health Impact Fund is a proposed system that offers pharmaceutical innovators a choice between traditional patent-protected mark-ups and a reward based on the health impact of their medicines. It aims to incentivize the development and distribution of medicines that have the greatest health impact.

How would the Health Impact Fund work in terms of rewarding pharmaceutical companies?

The Health Impact Fund would have a fixed reward pool and companies would receive a share of the pool based on the health impact of their medicines relative to all registered products. They would receive this reward for a period of ten years, after which the product would go generic.

What is the significance of the 'quality-adjusted life years' in the context of the Health Impact Fund?

Quality-adjusted life years is a method used to quantify the health impact of medicines. It considers both the quantity and quality of life that a medicine can restore or improve, which is then used to determine the reward for the pharmaceutical company.

How does the Health Impact Fund address the issue of counterfeit drugs in developing countries?

By providing genuine medicines at cost price, the Health Impact Fund would reduce the incentive for counterfeiting, as people would have access to affordable, authentic medicines without the need for cheaper, potentially ineffective alternatives.

What is the role of governments in the Health Impact Fund model?

Governments are crucial in funding the Health Impact Fund, providing long-term visibility and assurance for innovators that the reward money is available. They also play a role in supporting and implementing pilots for the Health Impact Fund model.

How can individuals contribute to the Health Impact Fund initiative?

Individuals can contribute by supporting the initiative, engaging with their governments, helping with publicity, and offering ideas to refine the Health Impact Fund scheme. They can also participate in starting a pilot program.