Last week, Bernie Sanders, the independent from Vermont, introduced a Senate bill that would swap prizes for patents. Essentially, the idea would eliminate market exclusivity for new drugs, but give inventors or developers cash rewards from a fund that would start with $80 billion a year. By doing so, the scheme would eliminate monopolies, allow generic competition, lower drug prices and produce savings of more than $200 billion annually.
Working behind the scenes on the concept for several years was Jamie Love, a consumer advocate who heads Knowledge Ecology International and who brainstormed with numerous people, including members of Sanders’ staff and Aventis execs during a 2002 global health planning meeting. The proposal, not surprisingly, is controversial and whether the bill will gain traction remains to be seen. So we chatted with Love, by phone and e-mail, to ask him more about the idea…
Pharmalot: Why do you believe such an overhaul is necessary?
Love: The current system is very expensive, doesn’t produce much in terms of innovation for the money spent, and leads to hardships and access for millions of Americans. The US also exports high prices to developing and developed countries. Some people seem satisfied with state of affairs, but we don’t like status quo, or the direction we’re going, and believe it’s appropriate to build a better system, that better serves consumer interests.
Most of the criticism of the new approach is either completely uninformed in terms of the actual mechanics of the approach, or based upon some half-baked theory that big pharma is all-powerful, or business models can’t be changed, so why try. But big pharma is not all powerful, and business models do change. If you’re reading this on the Internet, it’s because of a radical change in the business model for telecommunications that everyone now takes for granted.
The changes we’re proposing for drug development are so large and important they can be compared to the ones that created the Internet. The Internet makes much information free, on the margin. The Prize Fund would make medical inventions free, on the margin. Changes in both business models are important in building a future that meets our needs.
Pharmalot: Why do you believe it’s important to uncouple or de-link R&D from prices?
Love: First, all of the distortions and unfairness associated with access are related to links between incentives and product prices. This is pretty basic. The higher the prices, the greater the incentives, but also the greater the problems for consumers. We’re constantly being asked to trade-off innovation or access against each other.
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