Product Development Partnerships (PDPS) and Pharmaceutical Innovation
Author(s)
Berdud M1, Jofre-Bonet M2, Kourouklis D2, Towse A2
1Office of Health Economics, London, LON, UK, 2Office of Health Economics, London, UK
Presentation Documents
Objectives: Product Development Partnerships (PDPs) are a rational economic response to the lack of incentives for private pharmaceutical R&D in areas of low expected returns but high unmet need (e.g., neglected tropical and infectious diseases, rare diseases). In this research, i) we examine how different types of PDP are associated with the likelihood of product approval, i.e., successful pharmaceutical innovation, and ii) whether some types of PDPs stimulate drug development effectively in the early stages. Methods: We exploit the G-Finder database to collect data on PDPs for emerging infectious diseases between 2015-2019. Additionally, we extract data from various other sources such as the subscription-based PharmaIntelligence database and PubMed. We conduct simple OLS regression analyses that explore the relationship between the likelihood of approval of a product funded by different types of PDP, controlling for product and disease characteristics. Results: We find that an increase of PDPs’ R&D levels facilitates successful product development for all stages of development. Also, specific funder and product types stimulate innovation for infectious diseases products developed by PDPs, notably when public sector R&D funding to PDPs is used to develop risky products. The likelihood of approval of products in the early development stages is lower. The lack of scientific advances in sub-disease areas of infectious diseases is a barrier to innovation. Conclusion: Non-private funding is especially beneficial in the early stages of drug development for infectious diseases. PDPs play a significant role in developing new treatments for covering unmet need. Our findings can inform policymakers on i) how to optimally use PDPs to solve the market failures that characterize pharmaceutical innovation and ii) how to optimally balance the use of PDPs (push) with pull strategies to tackle global health challenges and improve patients’ health and society’s welfare.
Conference/Value in Health Info
2021-11, ISPOR Europe 2021, Copenhagen, Denmark
Value in Health, Volume 24, Issue 12, S2 (December 2021)
Code
POSA213
Topic
Epidemiology & Public Health, Health Policy & Regulatory
Topic Subcategory
Public Health, Public Spending & National Health Expenditures, Reimbursement & Access Policy, Risk-sharing Approaches
Disease
Drugs, Infectious Disease (non-vaccine), Vaccines