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Innovative Financing Models for Repurposing Generic Drugs

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Copyright © DrugPatentWatch. Originally published at

A paper presented at the 2nd International Conference on Systems Medicine, AI, and Drug Repurposing proposes a novel approach to overcoming the financial barriers associated with repurposing generic drugs through interventional pharmacoeconomics (IVPE) and outcomes-based contracts. It highlights the challenges of funding clinical trials for repurposed generics, often referred to as “financial orphans,” due to their limited commercial appeal.

IVPE offers a solution by comparing the cost-effectiveness of repurposed generics to standard care, leveraging the cost savings generated from the former to fund the trials themselves. This approach, similar to “prize-like” incentives used in other fields, could accelerate the development of repurposed generics, addressing the financial toxicity associated with new patented drugs.

The proposed IVPE + AMC (Advance Market Commitments) mechanism involves private or public health insurers establishing a fund to support the development of repurposed generics. This fund would enable the development of affordable therapies while improving patient outcomes, potentially reducing healthcare expenditures and expanding access to essential medicines globally.

Furthermore, the article discusses the potential medical de-risking of repurposed generics compared to novel molecules, as well as the ethical considerations and regulatory pathways involved. It emphasizes the need for collaboration between researchers and payers to implement this model effectively.

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