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.
S.1801 Proposes “Innovation Incentive Fund for New and More Effective Treatments for Bacterial Infections.” Proposal delinks incentives from prices.
On June 12, 2019, 15 members of the U.S. Senate introduced S.1801 (116th Congress), a bill to make medicines more affordable. Among the provisions of the bill, which also include a study of delinkage of R&D financing from pricing, is a Innovation Incentive Fund for New and More Effective Treatments for Bacterial Infections. Section 301 Read more about S.1801 Proposes “Innovation Incentive Fund for New and More Effective Treatments for Bacterial Infections.” Proposal delinks incentives from prices.[…]
On June 12, 2019, 15 US Senators introduced S.1801, a bill to make medicines more affordable. Among the provisions in the bill are a study of the feasibility of progressively delinking R&D costs from product prices. S. 1801: Affordable Medications Act Ms. Smith (for herself, Ms. Klobuchar, Mr. Blumenthal, Mr. Udall, Mr. Brown, Ms. Warren, Read more about S. 1801: Affordable Medications Act (116th Congress), calls for study of delinkage[…]
By Ellen ‘t Hoen The movement to delink the cost of developing medicines from their market price received another boost this week, with the publication of a new report from the Netherlands Council for Public Health and Society, an official government advisory body. This report is part of a recent phenomenon in which even the Read more about Growing consensus on importance of delinkage in pharmaceutical R&D[…]
Presidential Advisory Council on Combating Antibiotic-Resistant Bacteria unanimously endorses delinkage
On Thursday, September 14, 2017, the Presidential Advisory Council on Combating Antibiotic-Resistant Bacteria unanimously endorsed a report that included very powerful recommendations on delinkage. This is a link to the report that was approved. One of the key recommendations follows: Adoption of some form of a delinkage model as a pull incentive. Delinkage is a Read more about Presidential Advisory Council on Combating Antibiotic-Resistant Bacteria unanimously endorses delinkage[…]
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[…]