Drug Development/R&D

A new paper, published last week in Applied Economics, by Dimitrios Kourouklis, Senior Economist at OHE, looks at the question of whether government funding increases public sector development of new medicines. Looking at public sector drug development in Europe, this paper suggests that government funding does have an impact on the research and development pipeline, particularly at the earlier stages of research for medicines targeting rare diseases.

OHE authors develop a supply and demand model of pharmaceutical markets to analyse the social welfare distribution between consumers (payers) and developers (industry) to set an optimal cost-effectiveness threshold (CET).

In place of OHE’s 2020 Annual Lecture, Adrian Towse will give a webinar-lecture on June 25th on payment models for a COVID-19 vaccine.

He will be discussing options for funding the development and manufacture of a vaccine, reflecting on their strengths and weaknesses, considering what may happen with no regional or global collaboration. Analysis will consider the work of Gavi and others to construct a global vaccine market that delivers for all citizens.

A COVID-19 vaccine is needed now, but timelines (12-18 months) create large market risk. By the time a vaccine is ready, the crisis may have passed. A CGD Note explores three options: business as usual – which may lead to promotion of an inferior vaccine or fierce country competition for supply – and two models (cost- or value-based), with countries pre-committing to purchases meeting specified efficacy. The authors prefer a value-based model.

This presentation to the Australian Society for Antimicrobials (ASA) meeting in Melbourne, on 27th February 2020 draws on OHE research, funded by the Wellcome Trust, on adapting HTA methods and contracting for new antibiotics. It analyses UK (NICE and NHSE) plans to introduce a subscription model (delinking use of new antibiotics from payments for making the products available) and suggests that Australia could also pilot such an approach.

OHE has published a white paper discussing the relative merits and shortfalls of current approaches to defining, estimating, and applying cost-effectiveness thresholds in HTA.

This will be accompanied by a (forthcoming) research paper exploring bargaining in threshold setting

TB kills 1.6m people annually - the world’s deadliest infectious disease. The Market-Driven, Value-Based Advance Commitment (MVAC), creates and guarantees a market for better TB treatment. The final “blueprint” has four pillars: HTA to inform countries’ value-based purchase commitments; commitment guarantees underwritten by a development bank; industrial policy alignment; and a governance structure credible to MIC payers and industry.

A new OHE Consulting Report describes the current status of real-world data in Japan, including core legislation and governance arrangements. The authors sought to understand how real-world data is accessed or generated and used to produce or generate real-world evidence, and to see whether use is aligned with international standards.

Market-Driven, Value-Based Advanced Commitment (MVAC) is a new mechanism to help re-direct private-sector R&D investments where they’re needed most. We propose to use MVAC to encourage investments in tuberculosis (TB), which affects 10 million people worldwide. In this blog post, we reflect on the first round of feedback on our consultation draft on MVAC.

Innovation is a critical tool in the global fight against tuberculosis (TB), an infectious disease that primarily affects the poor and vulnerable and ranks among the top 10 causes of death in the world. The Center for Global Development and the Office of Health Economics are proposing a new innovation model to bring better TB drugs to market. We call it the “Market-Driven, Value-Based Advance Commitment,” or MVAC for short.

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