1. Pharmaceuticals Industry
Research and Development
To discuss R+D ,as that is what they are there for , we allow them to make lots of money and in return they are there to generate new treatments.

2. $337 billion market 10% AFRICA AND ASIA ( >2/3 WORLD POPULATION )
Pharmaceuticals industry like all other industries obey the rules of the market system ,10% of this market represents more than 2/3 of the worlds population . This imbalance in representation is responsible for market failures.
80% US , JAPAN AND EUROPE

3. MARKET FAILURE (INFECTIOUS DISEASE)
MARKET SUCCESS (AIDS)
MARKET FAILURE (INFECTIOUS DISEASE)
Success and failure I am defining as whether new treatments have been generated or not. AIDS is an example of a market success in that it represents a disease identified as a major public health concern which led to R+D and treatments being generated. This happened because it affected the US , Europe and Japan.

4. Market Failure 14 million died 1999 of preventable treatable disease
Minimal drug development
Exacerbation of multidrug resistance
However for diseases such as malaria ,TB and respiratory diseases <1% of 1393 new medicines launched between 1975 and 1997 were specifically for these types of disease. Stagnant R+D exacerbates the problems of MDR eg. malaria and chloroquine

5. Research and Development
US food and drug administration 1995
3% important
13% modest potential
84% little or no potential
In a 7 year study by the Us food and drug admin they concluded that 84% of all the new medications launched in that time period had little or no contribution to make ,yet presumably they fulfilled their commercial target before R+D was started ( see next slide )

6. Pfizer (justification)
Costs
Risks
What they do ( as opposed to what they don’t do )
Some information from pfizer website ,costs: $500 million on each drug that is finally approved over 15 year period, $3.2 billion into R+D every year , 5000 researchers trying to find new ways of treating cancer , diabetes , IHD ,AD and into trying to regenerate nerve cells ( by comparison total worldwide investment from non industry sources is $75 million )
Risks: 3out of 7 new drugs fail ,therefore commercial target has been set at $ million in sales per drug per year
What they do : 90% of all new drugs come from industry

7. What can be done Global Treaty Green light committee
WHO Commission on Macroeconomics and Health 2001 “the commission calls for a significant scaling up of financing for global research and development on the heavy disease burdens of the poor”
Global Treaty: along the lines of any other World Trade Org. treaty to ensure that Pharmaceuticals Companies are obliged to put money into R+D for neglected diseases ( suggestion form working group on “ Drugs for Neglected Disease” )
Green Light Committee : example of WHO initiative to improve access to drugs by making the market more competitive ( however has not stimulated any R+D but might do on a larger scale )
Finally ,strong argument to remove this R+D from the market system altogether.

8. Summary
“ current crisis in research and development for neglected diseases is a global market failure and global public policy failure “
Quote from a member of the working group for “Drugs for Neglected Disease” ( funded by MSF )