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Does global drug innovation correspond to burden of disease? The neglected diseases in developed and developing countries

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  • Eliana Barrenho
  • Marisa Miraldo
  • Peter C. Smith

Abstract

Although it is commonly argued that there is a mismatch between drug innovation and disease burden, there is little evidence on the magnitude and direction of such disparities. In this paper, we measure inequality in innovation, by comparing research and development activity with population health and gross domestic product data across 493 therapeutic indications to globally measure: (a) drug innovation, (b) disease burden, and (c) market size. We use concentration curves and indices to assess inequality at two levels: (a) broad disease groups and (b) disease subcategories for both 1990 and 2010. For some top burden disease subcategories (i.e., cardiovascular and circulatory diseases, neoplasms, and musculoskeletal disorders), innovation is disproportionately concentrated in diseases with high disease burden and large market size, whereas for others (i.e., mental and behavioral disorders, neonatal disorders, and neglected tropical diseases) innovation is disproportionately concentrated in low burden diseases. These inequalities persisted over time, suggesting inertia in pharmaceutical research and development in tackling the global health challenges. Our results confirm quantitatively assertions about the mismatch between disease burden and pharmaceutical innovation in both developed and developing countries and highlight the disease areas for which morbidity and mortality remain unaddressed.

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  • Eliana Barrenho & Marisa Miraldo & Peter C. Smith, 2019. "Does global drug innovation correspond to burden of disease? The neglected diseases in developed and developing countries," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 123-143, January.
  • Handle: RePEc:wly:hlthec:v:28:y:2019:i:1:p:123-143
    DOI: 10.1002/hec.3833
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    References listed on IDEAS

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    Cited by:

    1. Javad Moradpour & Aidan Hollis, 2020. "Patient income and health innovation," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1795-1803, December.
    2. Massimo Florio & Simona Gamba, 2021. "Biomed Europa: After the coronavirus, a public infrastructure to overcome the pharmaceutical oligopoly," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(3), pages 387-409, September.
    3. Barrenho, Eliana & Halmai, Réka & Miraldo, Marisa & Tzintzun, Iván & Raïs Ali, Setti & Toulemon, Léa & Dupont, Jean-Claude K. & Rochaix, Lise, 2022. "Inequities in cancer drug development in terms of unmet medical need," Social Science & Medicine, Elsevier, vol. 302(C).
    4. Gamba, Simona & Magazzini, Laura & Pertile, Paolo, 2021. "R&D and market size: Who benefits from orphan drug legislation?," Journal of Health Economics, Elsevier, vol. 80(C).
    5. Vijay Mohan & Munirul Nabin, 2023. "A note on disease burden and pharmaceutical R&D," Australian Economic Papers, Wiley Blackwell, vol. 62(4), pages 633-649, December.
    6. Rabbani, Maysam, 2021. "Mergers with Future Rivals Can Boost Prices, Intensify Market Concentration, and Bar Entry," MPRA Paper 112864, University Library of Munich, Germany, revised 26 Apr 2022.
    7. Simona Gamba & Laura Magazzini & Paolo Pertile, 2019. "R&D and market size: who benefits from orphan drug regulation?," Working Papers 09/2019, University of Verona, Department of Economics.

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