Developing Drugs for Developing Countries: An Economic Model of Market Mechanism
Assistant Professor of Management and Economics, David
B. Ridley and his Duke colleagues conducted research to evaluate
mechanisms that foster R&D for diseases such as malaria and tuberculosis.
Using a rigorous economic analysis, this research project evaluated the conditions
under which certain mechanisms will provide greater net social benefit. Their
research resulted in the following article:
David
B. Ridley, Henry G. Grabowski, and Jeffrey L. Moe. “Developing Drugs
for Developing Countries.” Health Affairs. 2006. Vol. 25, No. 2.
(lead article)
Infectious and parasitic diseases create enormous health burdens, but because
most of the people suffering from these diseases are poor, little is invested
in developing treatments. We propose that developers of treatments for neglected
diseases receive a "priority review voucher." The voucher could
save an average of one year of U.S. Food and Drug Administration (FDA) review
and be sold by the developer to the manufacturer of a blockbuster drug. In
a well-functioning market, the voucher would speed access to highly valued
treatments. Thus, the voucher could benefit consumers in both developing
and developed countries at relatively low cost to the taxpayer.
An Interview with David Ridley by the Kaiser Family Foundation