Eyes on Prizes

It's always hard to know what to make of the endless talkfests on global health that take place in Geneva. Last week, a subcommittee of the World Health Organization discussed ways of increasing the amount of research and development that goes toward cures for the neglected diseases of the developing world: tuberculosis, malaria, leishmaniasis, Chagas disease and the like.

News accounts Saturday suggested that these "talks" are progressing slowly, although the indefatiguable Jamie Love of Knowledge Ecology International was characteristically upbeat in this Reuters reports. The Intellectual Property Watch newsletter is also keeping close tabs on the talks, which will resume next spring.

Knowledge Ecology, Doctors Without Borders and a feisty coalition of non-governmental groups (NGOs) are pushing the WHO to endorse a prize system for developing new drugs. Under a prize system, donor countries and health care payers could put up large one-time payments for any major breakthrough against a neglected disease. By making the reward for industry (or non-profit) R&D a one-time payment, rather than the ongoing surtax of high prices on the price of the drugs or vaccines, the IP could be transferred by the prizemaker (and therefore new owner) to generic manufacturers, who would then provide the technology to poor countries on much cheaper cost-plus basis.

Relying on the WHO to experiment with such a system will take forever since the glacial pace of the talks is directly related to the fierce opposition of the global pharmaceutical industry. That's why anyone interested in this approach should pay close attention to the machinations of the X Prize Foundation, launched a few years ago by Internet billionaires like Larry Page, a co-founder of Google, Inc.

Most of the news from that group was generated when it offered prizes for commercial space travel and the 100-miles-per-gallon car. But last month, with the encouragement of the Clinton Foundation, they ponied up $300 million in prize money for innovations in public health and education.

They promised a first round of targets (presumably with the prize dollar amounts attached) next spring. Following this story -- what they deem prize-worthy, who goes after it, and whether the goals are achieved -- should provide an early test of the viability of using a prize system to encourage medical innovation.