Innovation pharmaceutical

Raymond C. Rowe, The PROFITS Group, Institute of Pharmaceutical Innovation, University of Bradford, Bradford, West Yorkshire BD7 IDP, UK. (rowe intelligensys.co.uk). 

There are a number of policies that support a climate conducive to pharmaceutical innovation, including [40] ... 

Institute of Pharmaceutical Innovation, Bradford University, BD7 1DP, UK Werner Kohler... 

Pharmaceutical innovation has made a decisive contribution to the reduction of mortality and the improvement of quality of life. The role of patents in providing incentives for innovation has been crucial. Yet at the same time there are limitations that need to be overcome in the future. Here we will mention just two examples orphan drugs and parallel imports. Patents do not offer incentives to develop drugs for low-prevalence diseases, known as orphan drugs. Governments are sometimes faced with the option of public production, as the private sector does not invest in them. Yet these would be precisely the cases in which experiments would be conducted with new models for promoting innovation, as discussed in this chapter. 

Grabowski, H. and J. Vernon (2000), The distribution of sales revenues from pharmaceutical innovation , PharmacoEconomics, 18 (supplement 1), 21-32. 

Grabowski, H.G. and Vernon, J., The distribution of sales from pharmaceutical innovation, Pharmco. Econ., 18(Suppl. I), 21-32, 2000. 

See Pharmaceutical Research and Manufacturers of America, Delivering on the Promise of Pharmaceutical Innovation The Need to Maintain Strong... 

The purpose of this book is to investigate public policy issues in pharmaceutical innovation. In Section II we first describe the important characteristics of prescription drugs. We emphasize that these characteristics deviate from the standard conditions in a competitive market. In Section III we discuss the current performance of the pharmaceutical market. In Section IV we investigate market failures that persist in allocating research and development (R D) resources and in the utilization of prescription drugs. In Section V we analyze the policy conflict between the economic and health sectors arising from pharmaceutical innovation. The final section discusses the structure of the book and the major content of the chapters. 

Following this chapter s overview of pharmaceutical innovation, our book highlights four important issues in pharmaceutical innovations (1) the industry structure of pharmaceutical innovation, (2) incentives for... 

Chapter 14 by Frank A. Sloan and Chee-Ruey Hsieh draws on major findings of the book and discusses the most important implications for countries that seek to promote and cope with the problems of pharmaceutical innovation. They distinguish between what is known and what is not known about pharmaceutical innovation and chart a course for future economic research on this important topic. 

Berndt, Cockburn, and Grepin (2005) employ the number of medical indications to measure pharmaceutical innovation. A substantial share of industry research and development expenditures, estimated at between 25% and 30% (p. 45), is directed toward finding new indications for existing products. Berndt et al. use the term incremental innovation to describe these efforts. For the three therapeutic areas they examined, the number of FDA approvals for new indications increased substantially in the past decade (p. 27). In addition, the greater number of approved indications has led to increased utilizations of the drugs concerned (p. 41). On that basis, they maintain that reported declines in pharmaceutical research productivity are overstated. 

The positive relationship between income of those affected by a disease and the amount of research undertaken into pharmaceuticals for that disease has been empirically conhrmed in a variety of studies, including Lanjouw and MacLeod (2005) and Lichtenberg (2005a). The prevalence of a disease in some developing countries has often been attributed to poor food, water, and sanitation or access to treatment and may not reflect an absence of useful pharmaceuticals. In such cases it may be factors other than pharmaceutical innovation that need to be addressed. However, even if other solutions are possible, there may also be situations in which a pharmaceutical solution would be the most cost effective, if it were available. For example, it may... 

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