Can Greater Transparency on Public Funding Received by Pharmaceutical Companies to Develop Medicines Make New Medicines More Affordable?

ISSUE: The EC proposed pharmaceutical directive will require developers to be transparent regarding any direct financial support received from public bodies for R&D of medicines. This issue panel explores the implications and reactions of academia, industry, and payers. How should companies report the public funding received? How can payers use this information in HTA and price negotiations? How does it affect incentives to finance and conduct R&D?

OVERVIEW:

Jaime Espin will introduce the issue and panelists (5 minutes)

David Epstein will discuss academic scholarship providing insight into what public funding of R&D achieves, and whether such investments should be recovered in lower prices for medicines (15 minutes)

Yannis Natsis will argue that transparency into public funding streams can contribute to tackling the information asymmetry that fuels that power imbalance between companies & payers. Public funding is only one aspect of the multilayered public support that goes into biomedical R&D. The ultimate objective is to provide equitable & affordable access for all patients but also steer innovation. (15 minutes)

Carole Longson will argue that the interplay between public and private R+D is complex especially when considering the value attribution of transferring innovation from academia into industry. Many scientists move between academia and industry during their careers, bringing with them their knowledge, skills and intellectual property. Greater transparency in understanding the financial flows involved in bringing innovation to patients is important and useful. However, a framework to apportion costs and value across the public/private interface is challenging. A key element to be discussed will be how to develop and implement the right incentives that allow each actor in this complex public/private innovation system to be rewarded appropriately. (15 minutes)

The moderator will ask the audience vote on their preferred approach in a poll (2 minutes) and to submit questions for the panel (10 minutes)