DELINKAGE IS A TERM TO DESCRIBE CHANGES IN THE WAY WE FINANCE R&D
What is delinkage?
There are better ways to to fund and induce investments in R&D. We do not need legal monopolies that allow drug companies to charge high prices.
Radically lower drug prices and expand access
Instead of using the grant of monopolies and high prices as the incentive to invest in R&D, delinkage models combine expanded government funding for drug development with cash reward incentives to researchers and successful drug developers. With competition replacing monopoly, prices for products will approach marginal costs of production. We can eliminate price-sensitive formularies, expand access, and achieve better and more fair outcomes.
EFFICIENTLY Fund R&D
Under delinkage approaches, combinations of grants, subsidies, and incentives based upon cash rewards ensure robust funding for R&D. An international framework will shift from promoting monopolies and high prices to ensuring that governments can fashion cost-effective R&D incentives that target advances in life sciences and improvements in health outcomes.
Save money for consumers, taxpayers, and employers
The grant of monopolies as an inducement to invest in R&D is expensive. Delinkage alternatives cost less. Delinkage would expand access, improve health outcomes, and save money at the same time. For more information, see our page on savings.
Senator Al Franken, D-Minn., and Representative Jan Schakowsky, D-Ill., along with various high-ranking Democrats in the House and Senate, introduced the Improving Access To Affordable Prescription Drugs Act (S. 771 and H.R. 1776) on March 29, 2017. The bill contains a provision that would create a prize fund for antibiotics. The prize fund would initially Read more about Franken and Schakowsky Drug Pricing Bill Contains Prize Fund for Antibiotics, Delinkage Study[…]
On March 30, 2017, seventeen civil society organizations issued a letter to the EU, urging support for a proposed resolution concerning cancer research and development at the upcoming 70th World Health Assembly in May. The signatories of the letter (listed below) called on the EU to support the cancer resolution, which mandates a feasibility study Read more about Civil Society Groups Urge EU to Support WHO Cancer Resolution[…]
On March 2, 2017, Senator Bernie Sanders, I-Vt., introduced the Medical Innovation Prize Fund Act (S. 495), which would create an over $100 billion prize fund (set at 0.55-percent of the United States GDP) to reward medical innovation in lieu of the grant of monopolies on new drugs. This bill, which is substantively similar to various Read more about Sen. Sanders Introduces Medical Innovation Prize Fund Act[…]
During negotiations on the cancer resolution at the World Health Organization Executive Board meeting in January 2017, India, with the support of Brazil, proposed adding language to a resolution on cancer that would require the WHO to conduct a feasibility study on the creation of a multi-country push and pull fund for cancer research and Read more about India, With Brazil, Proposes Delinkage Feasibility Study in WHA Cancer Resolution[…]
On December 2, 2016, Knowledge Ecology International hosted a technical meeting on delinkage at the United States Senate. The meeting included panels on various aspects of delinkage, including end product prizes, open source dividends, and antibiotics. Slide presentations from the meeting are available on the KEI website. A recording of the event is on YouTube.
At an October 21, 2016 Partnership for Quality Care drug pricing forum at the Kaiser Permanent Center for Total Health in Washington, D.C., Dr. Peter Bach, the Director of the Center for Health Policy and Outcomes at Memorial Sloan-Kettering Cancer Center, endorsed the idea of delinkage in connection with his proposals on value-based pricing. In particular, Read more about Dr. Peter Bach Endorses Delinkage for Orphan Drugs[…]
UN Backs Delinkage in Political Declaration of the High-Level Meeting of the General Assembly on Antimicrobial Resistance
A September 21, 2016 high level meeting of the United Nations General Assembly on antimicrobial resistance endorsed delinking the cost of R&D from the price and volume of sales. The documents from the meeting are available here: http://www.un.org/pga/71/event-latest/high-level-meeting-on-antimicrobial-resistance/. The relevant part of the political declaration was as follows: (c) Underline also that all research and Read more about UN Backs Delinkage in Political Declaration of the High-Level Meeting of the General Assembly on Antimicrobial Resistance[…]
During the UN high level meeting on Antimicrobial Resistance, the Group of 77 and and China read a statement that included an endorsement of delinkage: Statement delivered by His Excellency General Prayut Chan-o-cha (ret.) Prime Minister of the Kingdom of Thailand on behalf of the Group of 77 and China at the Plenary of the Read more about Group of 77 and China Back Delinkage in Context of Antimicrobials[…]
The United Nations Secretary-General’s High-Level Panel on Access to Medicines today issued its final report. The main report was accompanied by eleven pages of additional commentary, including ares of dissent from six panel members, plus additional explanations of the process. The panel was asked to address the policy incoherence from granting monopolies for products on Read more about UN High-Level Panel Endorses Delinkage of R&D Costs from Prices of Drugs and Vaccines[…]
At a March 17, 2016, Center for Strategic and International Studies (CSIS) event in Washington, D.C., on “The Bio-Pharma Industry and Society,” Sir Andrew Witty’s keynote address included a discussion of GSK’s decision to explore the delinkage of R&D costs from drug prices. Witty suggested that delinkage could initially be implemented in the context of Read more about GSK CEO Andrew Witty on “Exploring Delinking the R&D Charge”[…]