Abstract

Governed through the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) since 1995, the current medical R&D system requires significant trade-offs between innovation and high monopoly prices for patented drugs that restrict patient access to medicines. Since its implementation, few amendments have been made to the original TRIPS agreement to allow low- and middle-income countries (LMICs) to facilitate access by generic manufacturers through flexible provisions, such as compulsory licensing and parallel import. Although a useful policy tool in theory, the routine use of TRIPS flexibilities in LMICs in the procurement of new essential medicines (EMs) is regarded as a ‘last resort’ due to strong political response in high-income countries (HICs) and new trade agreements’ restrictions. In this context, access-oriented biomedical Public-Private Partnerships (PPPs) have emerged. More recently, leading multilateral health organizations have recommended different types of intellectual property (IP) interventions, voluntary biomedical patent pools, as strategies to reduce prices and increase the diffusion of novel EMs in LMICs. Nevertheless, the recent Ebola and COVID-19 outbreaks highlight growing concerns regarding the use of TRIPS flexibilities and the limited success of voluntary mechanisms in promoting access to medicines in the Global South amidst health crises. This review aims at describing the state-of-the-art empirical research on IP-related options and voluntary mechanisms applied by emerging PPPs to guarantee timely and affordable access to EM in LMICs and reflect on both models as access paradigms. Some suggestions are put forward for future research paths on the basis of these analyses and in response to contemporary debates on waiving key IP rights on COVID-19 therapies, diagnostics, and vaccines.

Highlights

  • MethodsVoluntary licenses (through the MPP/bilateral) are associated with an increase in treatment uptake of 53.6 per 1000 diagnosed individuals in the two years after implementation (95% CI 25.8–81.5)

  • The reviewed literature is situated at the intersection of several broader strands of the literature in economics of innovation, patent pools, and healthcare economics, namely healthcare affordability

  • The present review highlights that there has been a notable increase in the number of studies that have explored the multifaceted effects of collaborative intellectual property (IP) models, through the MPP, on health and economic outcomes in low- and middle-income countries (LMICs)

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Summary

Methods

Voluntary licenses (through the MPP/bilateral) are associated with an increase in treatment uptake of 53.6 per 1000 diagnosed individuals in the two years after implementation (95% CI 25.8–81.5). Inclusion of country-HIV/AIDS compound pairs in the MPP increases the share of generic purchases of a compound (by about 7%). Cost-benefit analyses show that the MPP is estimated to increase welfare substantially compared to no-MPP cases. Consumer surplus increases by $0.7–1.4 billion (8.6–18.9%), and producer surplus can increase by up to $181 million (4.5%), far exceeding the $33 million operating cost in the same period. Inclusion of a compound in the pool is associated with more follow-on clinical trials, and more firms participate in the trials

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