Aidan Hollis is helping to provide incentives for pharmaceutical companies to send drugs to the developing world. (Photo by Riley Brandt)
Aidan Hollis is an economist with a twist. A professor in the Department of Economics, he has long studied the pharmaceutical industry, including innovation in research and development, and affordability of medications. But his interest in the field goes beyond simple analysis; he’s using his knowledge of economic incentives to help save lives.
Together with Thomas Pogge, a professor of philosophy and international affairs at Yale University, Hollis founded Incentives for Global Health (IGH) in 2008. The non-profit organization, which involves leading international health-care and economics researchers, was established to develop and promote the Health Impact Fund (HIF). A novel concept, the HIF ties corporate profits to the provision of life-saving drugs in the developing world.
“All lives are of equal value,” says Hollis, vice-president of IGH. “Naturally, companies invest in research into the therapies likely to be profitable, and this generally excludes new treatments for diseases that predominantly affect the poor. The HIF aims to fill a hole in the incentives for innovation.”
According to the World Health Organization, people in low-income countries suffer not only from the diseases familiar in wealthy countries, but also from the so-called “diseases of poverty.” These include lung infections, diarrhoeal diseases, HIV/AIDS, tuberculosis and malaria. A major contributor to the high death rates? Lack of access to critical, but expensive, medications.
The HIF aims to bridge the access-to-medication gap. Under its proposal, pharmaceutical companies would be encouraged to develop innovative drug therapies that meet the specific needs of developing countries. Companies have the option to register their new medicine with the HIF, meaning that the firm agrees to provide the drugs at cost anywhere it is needed.
The HIF, in turn, assesses the worldwide health impact of the new medication. And depending on the results of that evaluation, a cash reward would go to the pharmaceutical company. This reimbursement would come from a pool of funding that is financed by governments of developed and developing nations.
The HIF benefits everyone, Hollis says. Pharmaceutical companies will have a reason to develop and sell medications that, under normal market conditions, would not further their bottom line. The plan is also a cost-savings measure for governments. Rather than independently purchasing medication and shipping it overseas, governments can pool their resources and contribute to the HIF directly. Most importantly, millions of people in developing countries will avoid needless suffering—and almost certain death—from treatable diseases.
Currently, Hollis and his colleagues are in discussions with pharmaceutical companies and governments to advance the HIF. And while progress is slow, there is growing interest in the forward-thinking initiative, says Hollis. “It takes some time to change the world.”
For more information about the Health Impact Fund, visit www.healthimpactfund.org.
