What is the biopharma social contract?
The biopharma social contract is an overarching philosophy about the cycle of biopharmaceutical innovation and how we make innovations accessible for all.
Small biotech companies originate 55% of new medicines in the US. The work we do is hard . We all have to possess a strong personal drive to solve a big problem in medicine, in order to persevere through the ups and downs of the journey. The best biotechs set very ambitious goals and own these ambitions with great passion. Yes – it is a business that needs to raise capital and generate returns for shareholders. Investors play a vital role in our ecosystem. Investors put capital into companies with great ideas and great teams, with the hope that impactful and valuable drug products will reach patients and generate returns that can be re-invested into the ecosystem.
The basic premise of the biotech contract is simple:
• Investors, investors, foundations, large companies, academic institutions and government agencies contribute intellectual property and/or capital to enable biotech research
• Companies doing the work bear the costs and risks associated with the development process; a very high percentage of products never reach the market
• When products are approved, companies and their investors can make a profit for a defined period of market exclusivity
• When that period of exclusivity ends, drugs become generic so that prices can be as low as possible and long-term patient access can be sustained
We always have an obligation to advocate for equitable patient access and affordability – even during market exclusivity. An innovative and effective drug does not fulfill its promise if it does not reach the patient who needs it most.
I encourage everyone who works in biotech to understand and support these principles.
See these resources for excellent materials on this topic:
Free course by RA Capital: Biotech Unveiled
No Patient Left Behind initiative
Be sure to follow developments in the news from the FDA and major governments related to market exclusivity, drug pricing and other legislative matters that impact our industry.