Economics of Innovation
Optimal innovation balances willingness and ability to pay with the benefits of future R&D. Our wide-ranging programme aims to promote innovation in health care, increase our understanding of its value, and encourage R&D. New models of innovation should streamline development, reduce costs, and speed patient benefit.
Fishing for Innovative Drugs with the ODRS: Potential Benefits and Challenges
6 February 2023
During an engaging discussion of Professor Aidan Hollis’ prizewinning proposal with Professor Adrian Towse a range of potential benefits and remaining questions were explored.
The Case for Expanding Uptake of Next-Generation Sequencing for Lung Cancer in Europe
2 June 2023
In this report, we explore the status of access and uptake for NGS testing for lung cancer in Europe, develop the health economic case for NGS testing, and identify barriers and opportunities for widespread access.
Professor Aidan Hollis wins first £40,000 OHE Policy Innovation Prize
25 January 2023
Entrants challenged to devise a globally applicable approach to fair pricing of medicines. Winning entry proposes de-linking the innovation reward payments from the price.
G7 Investments in New Antibiotics Would Pay Off – For Everyone
9 December 2022
Programs to incentivise antibiotic R&D are underway in the UK and under consideration in the US, EU, Canada, and Japan. We have assessed the benefits and costs to the members of the G7/EU and project that all G7/EU members would see big payoffs ranging from 11:1 in the UK to 28:1 for the US and Japan. Global returns from reducing the 1.27m people dying each year from AMR are even higher.
The World Needs New Antibiotics. A Proposed US Program to Develop Them Offers a High Pay-Off
16 November 2022
A Center for Global Development (CGD) paper authored by OHE’s Adrian Towse and CGD’s Rachel Silverman Bonnifield shows a very high expected return on investment (ROI)…
Estimating the Impact of U.S. Drug Price-setting Policies on Innovation Is Challenging, Even for the Congressional Budget Office
22 June 2022
Since the Office of Health Economics (OHE) published a critique of CBO’s new simulation model of new drug development late last year, the U.S. public sector think tank has made three improvements to its methodology. We review these updates, assess their impact, and highlight the key remaining limitations of the modelling approach, concluding that policymakers should still exercise considerable caution in relying on its predictions.
Collaborating on Payment Models to Unlock the Potential of Multi-Indication Therapies.
22 June 2022
Innovation in drug development is evolving at pace. Individual medicines are increasingly found to benefit patients in a range of indications….
Invest to End TB. Save Lives. World TB Day 2022. Reflections on 60 years of OHE publications on TB
24 March 2022
Global TB deaths are increasing. CGD and OHE set out a “Market-Driven, Value-Based, Advance Commitment (MVAC)” that would create and guarantee a market for a breakthrough…
How Does Pharmaceutical Spending Drive Innovation in Europe?
7 February 2022
A new publication by Kourouklis and Gandjour (2022) investigates the impact of pharmaceutical spending on domestic early-stage pharmaceutical innovation in Europe. They find that European spending…