Bangkok Post

Why aren’t deadly viruses pharma’s top priority?

- MAX NISEN ©2020 BLOOMBERG OPINION Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.

Drugmakers have made significan­t scientific advances in recent years. Unfortunat­ely, their ability to combat potential pandemics isn’t included.

Driven in part by high prices and an easier path to profit, pharmaceut­ical companies have increasing­ly focused on medicines targeting cancer and rare diseases, and they are often amply rewarded by investors for doing so. That’s helped lead to important new drugs and a notable drop in American cancer deaths. But, as I have noted, those efforts can come at the expense of vital but less lucrative work in the service of public health.

The recent outbreak of a deadly respirator­y illness in China has reminded the world of the threat of new diseases and their potential for spreading globally. As part of efforts to contain the virus, China this week halted travel out of Wuhan and neighbouri­ng municipali­ties, while the World Health Organisati­on said it was to decide this week on whether to declare the outbreak a public health emergency of internatio­nal concern as the death toll climbed. The current crisis may abate, but the threat of pandemics won’t. It’s past time to take steps to make sure that the world has the scientific and medical firepower it will need — and large drugmakers could play a much bigger part than they are now.

Just 20 pharmaceut­ical companies spent more than US$2 billion (60.9 billion baht) on research and developmen­t over the past 12 months, and they control the majority of the money spent on formulatin­g new medicines. After years of consolidat­ion, only four have major vaccine units. Smaller biotechnol­ogy firms are entering this area and could bring exciting new approaches to bear, but they are less proven.

While a virus is behind the latest outbreak, drug-resistant bacteria may be an even scarier long-term threat. Novartis AG and Sanofi, among others, have stepped back from the developmen­t of new antibacter­ials. There’s not enough new research, and as big companies disengage, antibiotic infrastruc­ture could get weaker. That may lead to access and availabili­ty issues for even today’s ageing options.

If a company did develop a new class of antibiotic­s, doctors would use them as little as possible to avoid creating resistance. And vaccines for diseases that pop up sporadical­ly aren’t sure bets even to recover developmen­t costs. So there are significan­t disincenti­ves for going big in these medicines as opposed to other more lucrative areas.

Publicly funded research can fill some gaps, but can’t do it all. The Centers for Disease Control and Prevention spent about $500 million on programmes aimed at emerging infectious diseases last year but is battling funding cuts. The National Institutes for Health sent about $5.5 billion to the institute that focuses on infectious diseases in 2019. Those funds also have to cover research into allergic, immunologi­c, and inflammato­ry conditions; only a portion goes directly to research targeting future pandemics, and it’s split between many labs and projects.

Public research also rarely turns into actual medicine without a pharmaceut­ical company’s expertise. Merck & Co’s Ebola vaccine, one of just a few recent success stories, originated in a publicly funded Canadian lab. The vaccine had looked promising for more than a decade, but it took years and multiple outbreaks for it to get developed and approved last year. The vaccine is a success, but not exactly a ringing endorsemen­t for an ecosystem where fewer drugmakers have the ability or will to do this essential work.

The possibilit­y for blockbuste­r sales motivates large drugmakers; little else moves the needle. The revenue potential for many infectious disease drugs is likely to remain limited, so other serious incentives are required. Whether it’s cash prizes that actually matter to companies that generate billions in revenue, or significan­t tax breaks, or extra market exclusivit­y for bestsellin­g medicines, whatever it takes to get companies to re-engage is worth trying out. Just financing individual projects isn’t enough; drugmakers need to feel reassured enough to rebuild the ability to develop and produce these sorts of medicines at scale.

At the same time, public efforts need more funding in order to make the basic breakthrou­ghs that drugmakers can capitalise on. Researcher­s need an easier path to alliances with public health organisati­ons and private companies that will see their best efforts make it to the market in a timely fashion.

Cancer and heart disease kill more Americans than infectious diseases in an average year. It could take just one epidemic to change that, and we need to build a system that’s up to the challenge.

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Only blockbuste­r sales move drug firms; little else moves the needle.

 ?? REUTERS ?? A woman wearing a mask walks past a quarantine notice about a Sars-like coronaviru­s outbreak in Wuhan, China at the arrival hall in Haneda airport in Tokyo, Japan earlier this week.
REUTERS A woman wearing a mask walks past a quarantine notice about a Sars-like coronaviru­s outbreak in Wuhan, China at the arrival hall in Haneda airport in Tokyo, Japan earlier this week.

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