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R&D policy, agency costs and innovation in personalized medicine

机译:研发政策,代理成本和个性化医疗创新

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The Orphan Drug Act (ODA) was designed to spur the development of drugs for rare diseases. In principle, its design also incentivizes pharmaceutical firms to develop drugs for "rare" subdivisions of more prevalent diseases. 1 find that in response to this incentive, firms develop drugs for ODA-qualifying subdivisions of non-rare diseases. The impact in these tailored drug markets represents half of the total R&D response to the ODA. 1 also find that 10-percent of the innovation in subdivided disease drugs induced by the ODA would have been conducted without the policy. While modest in size, this inefficiency suggests that agency problems should be considered when designing innovation policy.
机译:《孤儿药法案》(ODA)旨在刺激罕见病药物的开发。原则上,它的设计还激励制药公司开发用于更常见疾病的“稀有”细分的药物。 1发现,为了响应这种激励,企业开发了用于ODA合格非稀有疾病细分的药物。在这些量身定制的药品市场中,这种影响占对ODA的研发总响应的一半。 1还发现,由ODA诱发的细分疾病药物创新中有10%会在没有政策的情况下进行。尽管规模不大,但这种低效率表明设计创新政策时应考虑代理问题。

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