Social Impact Bonds designed to incentivise new uses for off-patent drugs and unprofitable therapies
Open Source Medicine
Incentivising clinical trials for off-patent drugs allows everyone to benefit from affordable medicine
No Risk for Backers
Pay for success contracts mean that backers are guaranteed to only fund a medical breakthrough
Medical treatments are being ignored.
What if a safe, affordable and effective treatment for a disease is already available but couldn’t get the private funding it needed for large Phase II/Phase III clinical trials because you cannot recover the costs? This is the current broken system for incentivising medical innovation. The pharmaceutical industry will never pay for a drug’s clinical trials without being able to enforce a monopoly price using patents. So large clinical trials for these potential cures rarely get funded by governments and charities due to the expense (US$1-20m+ per Phase II clinical trial) and high risk of failure (50% – 75%) .
What if pharma can’t enforce their patent?
Unmonopolisable therapies are treatments that cannot be adequately protected using patents to enforce a monopoly price. For that reason they cannot attract private funding for clinical trials, even if they were promising treatments. Examples include new uses for off-patent generic drugs, supplements, diets and lifestyle interventions.
How it Works
A pay for success contract (e.g. Social Impact Bond/SIB) backed by Healthcare Payers (e.g. govts, large philanthropy, health insurers, public via crowdfunding), correctly implemented, would incentivise Impact Investors to fund large Phase II/ III randomised controlled trials (RCTs) to repurpose generic drugs / unprofitable therapies in return for outcome payments from the SIB if successful. The amount of outcome payments would based on cost savings for Healthcare Payers due to the RCT showing that the off-patent treatments work (e.g. % reduction in hospitalisations or improved remission vs usual care). The whole idea is to transfer risk from Healthcare Payers (who are more risk-adverse) to the market (who are more willing to bear the risk of RCT failure) which would benefit from the spreading of risk and potentially large upside. CFC is currently working with Guidehouse, a global consultancy with a large healthcare / pharma practice to execute a feasibility study with the goal of raising backing for a large fund to support the SIB and its administration.
More background here: https://www.linkedin.com/pulse/can-we-develop-new-affordable-medicines-without-savva-kerdemelidis/
CrowdFundedCures is an initiative of the Medical Prize Charitable Trust, a registered NZ charity incorporated under the Charitable Trusts Act 1957 (NZ) and having Charity No. CC49977. It was founded by Savva Kerdemelidis in 2013, who is an IP/Commercial/Crypto Legal Consultant and NZ/AU Patent and Trade Mark Attorney. Amir Amraie joined the team in 2018, and is a pharmacist and entrepreneur. The idea of using a flexible prize fund for specific disease classes (a type of “pay for success” contract) to “de-risk” large clinical trials for unmonopolisable therapies was first proposed in Savva’s 2014 LLM thesis (available here). More recently, the use of Social Impact Bonds (another type of “pay for success” contract) has also been suggested as a means for incentivising clinical trials for repurposing off-patent drugs (see here and here).
A 220-page book, “PATENT PANDEMIC” explains how deadly gaps in the patent system lead to effective treatments being ignored and how to fix it will available on Amazon in July 2021, with 100% of proceeds going to our charity.
CEO & Founder
Savva is a Commercial/IP Consultant Legal Counsel and a NZ and Australian Patent and Trade Mark Attorney with 18+ years experience working for tech companies. He conducted his LLM thesis on the lack of private incentives to develop unmonopolisable therapies.
Operations & Fundraising
Amir is a pharmacist and entrepreneur working with various tech companies and start ups to help with commercialisation. Amir has experience in public speaking, SEO, and managing multi-jurisdictional teams to conduct web development projects.