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.
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,[…]
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[…]
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[…]
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[…]
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[…]
By Ellen ‘t Hoen LLM. Medicines Law & Policy and Global Health Unit, University Medical Center Groningen, University of Groningen, The Netherlands. September 13, 2016 Solving the problems of access to high priced medicines is not possible without some serious new thinking about the way we finance the development of new medicines. Today’s predominant model[…]
By Dean Baker, Co-Director, the Center for Economic and Policy Research (CEPR) September 11, 2016 Every economist knows that trade tariffs are bad because they raise the price of the protected product above the free market price. The story is the same with patent monopolies on prescription drugs. However, there are two big differences. Tariffs[…]
In a policy statement on HIV AIDS and in a series of tweets, Senator Bernie Sanders reaffirmed his support of the delinkage of R&D costs from drug prices. This is from Senator Sander’s campaign 2016 statement on “Working to Create an AIDS and HIV-Free Generation.” THE PRIZE PLAN FOR HIV/AIDS As president, Bernie will[…]