Public-Private Partnerships As Models for New Drug Development: The Future As Now

in The Cambridge Handbook of Public-Private Partnerships, Intellectual Property Governance, and Sustainable Development, pp. 29-45, eds. M. Chon, P. Roffe & A. Abdel-Latif (Cambridge Univ. Press 2018)

FSU College of Law, Public Law Research Paper No. 902

FSU College of Law, Law, Business & Economics Paper No. 19-01

18 Pages Posted: 27 Dec 2018 Last revised: 24 Jul 2019

See all articles by Frederick M. Abbott

Frederick M. Abbott

Florida State University - College of Law

Date Written: December 5, 2016

Abstract

The international community is searching for ways to improve the system under which new pharmaceutical treatments, vaccines and diagnostics are discovered, developed and distributed. The predominant model relying on patents and regulatory market exclusivity, combined with pricing power, is creating enormous public and private budgetary pressures, and at least arguably is misallocating research and development (R&D) resources. The monolithic vertically integrated pharmaceutical originator is largely a myth. The drug discovery, development and distribution process has long involved a wide range of participatory arrangements, with basic discovery, follow-on research, translation and manufacturing technology functions distributed across in-house and external actors. A main distinguishing characteristic of the pharma originator company is its profit driven motivation, as compared with alternative models such as Public–Private partnerships (PPPs) and product development partnerships (PDPs) that are motivated in other ways. Each of these models already has a substantial public or nonprofit financing component.

The question explored in this contribution is whether and how PPPs and PDPs should become a more significant part of the global pharmaceutical development and distribution system. The chapter begins by describing the current model of pharmaceutical R&D, including the blurry boundary between public and private R&D. Following this is a section surveying some current PPP and/or PDP models of R&D, and analyzing the advantages and limitations of PPPs and/or PDPs. The next part connects the R&D activities of these partnerships to capital markets and investment incentives in the R&D of public goods. This part of the chapter discusses the potential role of PPPs and/or PDPS as part of a delinkage of R&D from production and distribution functions. The chapter concludes that further experimentation with PPPs and PDPs is warranted.

Keywords: public private partnership, innovation, drug development, intellectual property, pharmaceutical

JEL Classification: I15, I18, K33, O31, O34, O38, P45, P48

Suggested Citation

Abbott, Frederick M., Public-Private Partnerships As Models for New Drug Development: The Future As Now (December 5, 2016). in The Cambridge Handbook of Public-Private Partnerships, Intellectual Property Governance, and Sustainable Development, pp. 29-45, eds. M. Chon, P. Roffe & A. Abdel-Latif (Cambridge Univ. Press 2018); FSU College of Law, Public Law Research Paper No. 902; FSU College of Law, Law, Business & Economics Paper No. 19-01. Available at SSRN: https://ssrn.com/abstract=3298428

Frederick M. Abbott (Contact Author)

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States
850-644-1572 (Phone)
850-645-4862 or 917-591-3112 (Fax)

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