3. Making new medicines accessible
The Health Impact Fund (HIF) is a proposed new way of
paying for pharmaceutical innovation.
The HIF would incentivize the development and delivery of new
medicines by paying for performance
All pharmaceutical firms worldwide would have the option of
registering new medicines with the HIF
By registering, a firm would agree to provide its drug at cost
anywhere it is needed, and in exchange for foregoing the
normal profits from drug sales, the firm would be rewarded
based on the HIF's assessment of the actual global health
impact of the drug
INTRODUCTION
4. How would you organise the
Pharmaceutical Industry ?
The main principle
Real-time open Access to the world of all important
medicine regardless of their income.
R&D investment target the innovations that promise the
large health gains.
The entire system is cost-effective so that money spend
on the medicine achieve as much as possible for human
health.
5. The existing system
Focused innovation is distorted by huge economic
inequalities, which sustain the “10/90 gap”, and by
excessive rewards for “me-too” and maintenance drugs.
6. Overall efficiency & Wasteful
Marketing.
Overall efficiency is greatly diminished by
lobbing,gamming,patenting and litigation, by dead
weight losses, and by incentives for wasteful
marketing.
How it can Controlled:-
Regular surveillance using IT in the field of
Pharmaceutical.
7. Moral pressure on innovation isn’t the
solution
Like individuals, pharmaceutical firms have duties of
rescues: to deliver important drug cheaply to poor
patients and to developing new medicine for the
disease for the poor.
Driven out of the market.
8. The potential gains are enormous
In less developing countries some 50,000 premature
death daily that is 1/3 of all human death are due
to disease of poverty such as
TB,diarrhea,Respiratory infection, malaria and
conditions, measles and other child hood
diseases,hepatites and sexually transmitted
diseases.
10. Health Impact Fund Works Reward
Mechanism
HIF would offer a fixed reward pool each year $ 6
billion say, financed through taxes and /or
endowment income.
Rewarded for 10 years.
Product’s rewarded share in year X would equal its
share of total health impact of all registered
products in year x
After 10 years every years the product should be
re-evaluated annually on the basis of new data
and innovator will paid for it.
11. Health impact fund benefits all parties.
For innovators
Creates a new market of patient who cannot pay high
price
Provide additional profitable research opportunity
Bring relief from moral pressure to accept losses for the
sake of protecting the health of poorer patients
12. Health impact fund benefits all parties.
For Patients
Increase the likelihood that best medicine is available
Ensure that important available medicines are
affordable and supported
13. Health impact fund benefits all parties.
For Funding governments /taxpayers
Make spreading on medicines vastly more efficiency.
Greatly reduces the human and economic burdens of
disease.
14. Conclusion
If this type of Health Impact funding system is
developed, the innovators will be inspired for the
new research & development and patients will get
affordable medicines and the innovators should also
be rewarded for it.
From this ,the wastage of money in the research will
be controlled and it will help the country to maintain
the health care system and economic condition will
be stabilize.
