Massachusetts Institute of Technology
Sign in

Alternative Models Of Differential Pricing For Medicines

08/12/2004 1:45PM Wong Auditorium
Tomas J. Philipson, Senior Economic Advisor to the Administrator, Centers for Medicare & Medicaid Services ; David Meeker, President, LSD Therapeutics, Genzyme Corporation; Una Ryan, President & CEO, AVANT Immunotherapeutics, Inc.; Patricia M. Danzon, Chair, Health Care Systems Department Celia Z. Moh Professor Professor of Health Care Systems and Insurance and Risk Management The Wharton School of Management, University of Pennsylvania; Hannah E. Kettler, Program Officer, Global Health Strategies; The Bill & Melinda Gates Foundation ;

Description: Each speaker on this panel proposes a unique approach to the problem of making medicines universally affordable. Dr. David Meeker works in the area of rare diseases. Genzyme's hormone replacement therapy for Gaucher disease, which affects roughly 30 thousand globally, costs $150k to $200k per year. For patients in nations with poor health care systems, Genzyme discounts the medicine steeply. "Don't say free drugs," says Meeker. "We'll help individual patients as best we can but we're going to work on developing a health care system in that country that will eventually be able to take over." At Avant Immunotherapeutics, Una Ryan's company tackles new vaccines for travelers, bio-defense, global health and food safety uses. "We're trying to making vaccines people will actually take: safe, effective, oral, single dose, rapid protection and no refrigeration." There are enormous development costs involved, which are hard for a small company to shoulder, she says. Perhaps "all developed nations should pay their fair share for pharma R&D 'and for developing countries' drugs," indexing drug prices to each nation's GDP. Patricia Danzon suggests that drug manufacturers sell "products to wholesalers at uniform prices worldwide, then negotiate confidential rebates with final purchasers... This way, the lower prices offered to lower income countries won't spill over to higher income countries." Hannah Kettler describes the Gates Foundation's efforts to invest funds in public-private partnerships to reduce pharmaceutical RD costs. The foundation is also trying to build a fund to cover the costs of vaccinating in developing countries. Our expectation, she says, "is that if we pay the higher prices now, supply will expand and over time the price of vaccines will come down."

Host(s): Sloan School of Management, MIT Sloan School of Management

Comments (0)

It looks like no one has posted a comment yet. You can be the first!

You need to log in, in order to post comments.

MIT World — special events and lectures

MIT World — special events and lectures

Category: Events | Updated 10 months ago

Created
December 12, 2011 19:20
Category
Tags
License
All Rights Reserved (What is this?)
Additional Files


Viewed
4736 times

More from MIT World — special events and lectures

Where Morals Come From (And Why it Matters)

Where Morals Come From (And Why it ...

Added over 4 years ago | 01:56:00 | 6159 views

Investigating the Bush Administration's Misuse of Science

Investigating the Bush Administrati...

Added over 4 years ago | 01:59:00 | 3527 views

Religion and Political Violence

Religion and Political Violence

Added almost 5 years ago | 01:54:00 | 4081 views

Winning the Oil Endgame

Winning the Oil Endgame

Added over 4 years ago | 01:36:00 | 4195 views

The Next Catastrophe: Reducing Our Vulnerabilities to Natural, Industrial, and Terrorist Disasters

The Next Catastrophe: Reducing Our ...

Added over 4 years ago | 01:33:00 | 6584 views

Not Your Typical CEO

Not Your Typical CEO

Added over 4 years ago | 00:54:06 | 3534 views