REIMAGING PHARMACEUTICAL INNOVATION. by:- Balaji Kumar Panigrahi

Health Impact Fund (HIF) A new way of stimulating Pharmaceutical Innovation HIF

INTRODUCTION 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

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.

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.

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.

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.

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.

How can we change the system?

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.

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

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

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.

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.

Thank u 