Excerpt:
"The United States is set to launch a prize system to encourage pharmaceutical companies to develop drugs for tropical diseases.Sixteen tropical diseases, including sleeping sickness, leprosy and malaria are listed as eligible for the scheme.
Under the system, companies producing a drug or vaccine for a tropical disease can apply for a Priority Review voucher, which allows them a shorter approval time for another drug at a later date.
The shorter approval process would take approximately six months instead of ten, meaning that drugs could hit the market sooner and potentially be more lucrative. Thus, the vouchers are estimated to be worth around US$300 million.
Companies can also take advantage of the Orphan Drugs Act, under which drug developers receive tax credits, a waiver of the US Food and Drug Administration's user fee and seven years market exclusivity on drugs that have no economic viability."
Comment: This looks like a very good idea. The article describes subsidies for the development of drugs for diseases of poverty which are basically invisible to the Government budget process, but potentially important to the pharmaceutical industry.
Some caution should be used in estimating the value of the subsidy. Speeding the review of a drug provides economic value to the company primarily if the drug is approved, and proves to be profitable. Very few drugs are in the blockbuster category where the profits from a few months head start will be really large. Of course, firms may save up the vouchers until they have candidates in which they have lots of confidence. JAD
No comments:
Post a Comment