[Ip-health] WHO on returns from R&D on cancer medicines

James Love james.love at keionline.org
Tue Nov 27 07:26:14 PST 2018

This is the link to the report.


On Tue, Nov 27, 2018 at 4:14 PM James Love <james.love at keionline.org> wrote:

> 144th session 26 November 2018
> Provisional agenda item 5.7
> Medicines, vaccines and health productsCancer medicines
> Report by the Director-General on Cancer Medicines (EB144/18)
> 12. To examine returns on research and development investments, an
> analysis was undertaken to examine the sales incomes from cancer medicines
> approved by the United States Food and Drug Administration from 1989 to
> 2017 for the originator companies. For the 99 medicines included in the
> analysis, the average income return by end-2017 was found to be US$ 14.50
> (range: US$ 3.30 to US $55.10) for every US$ 1 of research and development
> spending, after adjustments for the probability of trial failure and
> opportunity costs; 33 of those medicines had already qualified as
> “blockbuster drugs” by having an average annual sales income exceeding US$
> 1 billion. Many medicines, particularly biologics, continued to generate
> high sales incomes for the originator companies after expiry of patents and
> the end of exclusive marketing rights. 1
> 3. Overall, the analysis suggests that the costs of research and
> development and production may bear little or no relationship to how
> pharmaceutical companies set prices of cancer medicines. Pharmaceutical
> companies set prices according to their commercial goals, with a focus on
> extracting the maximum amount that a buyer is willing to pay for a
> medicine. This pricing approach often makes cancer medicines unaffordable,
> preventing the full benefit of the medicines from being realized.
> --
> James Love.  Knowledge Ecology International
> http://www.keionline.org <http://www.keionline.org/donate.html>
> twitter.com/jamie_love

James Love.  Knowledge Ecology International
http://www.keionline.org <http://www.keionline.org/donate.html>

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