E-drug: Global Alliance for TB Drug Development
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ESTIMATED MARKET FOR TUBERCLOSIS DRUGS AT $700 MILLION BY 2010.
First analysis of the market and costs of R&D after 30 years of neglect
Partnerships advocated to develop new drugs within the decade
15 November 2001 New York
Fuelled by the growing tuberculosis epidemic, the market for drugs
to treat TB will approach $700 million by 2010, according to a new
report issued by the Global Alliance for TB Drug Development, a
non-profit organization created to develop new TB drugs.
Tuberculosis, which is easily transmitted through the air, already
infects 1.9 billion people - a third of the world's population - takes
the lives of two million each year, and is increasingly resistant to
existing drugs. The study advocates partnerships to link investors
and laboratories in both the public and private sectors in order to
ensure the development of new drugs.
"With one person dying every 15 seconds from TB, we must
develop new drugs or we will ultimately lose the battle," said Maria
Freire, PhD, the CEO of the Global Alliance for TB Drug
Development. "When only 23% of TB patients are properly treated
and resistance is on the rise, we must do better. New drugs that
would shorten treatment for both active and latent forms as well as
treat multi-drug resistant strains are 'must-haves' to win the fight
against this global epidemic."
The report, entitled The Economics of TB Drug Development,
Estimates that the current market for TB drugs is $450 million - with
67% representing private sales. It is expected to grow by
more than 50% within the decade. A single, new anti-TB drug
that reduces the treatment course from six months to less than two
months will capture about $325 million of the market. This could
expand to more than $400 million, because of the premium some
markets may be willing to pay for a shortened treatment course.
"The market is larger than previously thought, primarily in the hands
of private providers, and promises to become more accessible over
time, because of a series of recent global efforts to improve
access," said Dr. Giorgio Roscigno, Director of Strategic
Development and Chair of the Economics Report Committee.
"A close look reveals a market requiring partnerships to move R&D
and one that warrants public investment, given the tremendous
social benefits of new drugs."
The development costs are estimated at approximately $100 million,
including costs of failure but excluding discovery costs and costs of
capital. The report concludes that the internal rate of return for
bringing a lead compound to market ranges between 15 - 30%.
The report highlights the returns on investment promised by new
drugs, especially in public health. A new drug that reduces
treatment duration may lower non-drug costs such as sputum
smears, X-rays and hospital stays, by up to 65 percent. The costs
of treating a single TB case vary widely around the world, but often
exceed $25,000 per patient in the United States.
Stimulating R&D through partnerships
With new scientific advances, such as the sequencing of the M.
tuberculosis genome and the use of combinatorial chemistry, a
number of valuable innovations and ideas can be leveraged.
Recognizing the low likelihood of a single industry player pursuing
the development of an anti-TB drug, the report suggests that
partnerships are the best strategy for results-oriented R&D of TB
drugs.
"We believe scientific and research activity has yielded a handful of
compounds that have not yet moved off the shelf, because the
market was misunderstood or was too modest for large firms to
invest" said Dr. Roscigno. "Our findings demystify the stumbling
blocks, provide solid data on the market, and reveal how
partnerships speed up the development process and distribute the
risks."
"Within the last five years, there has been an increasing recognition
that the market for diseases such as TB deserves more attention,
and the way to leverage it is through partnerships," said John
Horton, Director of Clinical Strategy for Diseases of the Developing
World at GlaxoSmithKline. "This report provides much needed data
to incentivize this process for TB."
Dr. Freire adds, "The Global Alliance offers industry an incentive by
forging partnerships among diverse players. We will capitalize on
the research underway in public labs, biotech companies and
pharmaceutical firms so that existing compounds move along the
R&D cycle quickly and deliver affordable drugs."
"The report embodies the spirit of an unprecedented level of global
commitment and cooperation to treat, control, and eliminate TB,"
said Dr. Ariel Pablos-Mendez, Associate Director for Health Equity
at the Rockefeller Foundation. "In both developed and developing
nations, in private and public research institutes, there is an
opportunity to turn this commitment into a solution by creating new
drugs to fight tuberculosis. By outlining the partnership advantages
and the strategic role of the Global Alliance, this report paves the
way."
A year of operations for the Global Alliance for TB Drug Development
marking its one-year anniversary, the Global Alliance
for TB Drug Development has worked towards its goal of
accelerating the development of new medicines and ensuring
equitable access to improved TB treatments. In addition to this
report, a companion strategic research study, entitled The Scientific
Blueprint for TB Drug Development, acts as a road map for
accelerated drug development by identifying the critical issues from
research to registration and approval. The Global Alliance has been
reviewing promising drug research in public and private sector labs
worldwide to identify potential partners for the development of new
drugs. It is currently in negotiation with public and academic
research centres as well as biotech and pharmaceutical firms for
five separate compounds at the lead optimisation phase and the
pre-clinical stage.
The Economics of TB Drug Development was developed in
cooperation with the Research Triangle Institute, and with the
support of the Rockefeller Foundation and the NIAID at the National
Institutes of Health. For the full report and list of contributors,
please visit www.tballiance.org.
The Global Alliance for TB Drug Development operates as a
not-for-profit, public-private partnership with offices in Brussels,
Cape Town, and New York. The mission of the Global Alliance is to
accelerate the discovery and/or development of affordable new TB
drugs that will shorten treatment, be effective against multi-drug
resistant TB, and improve treatment of latent TB infection. The
Global Alliance functions as a lean, virtual R&D organization that
out-sources R&D projects to public labs or industry. Its R&D strategy
is to build a portfolio of promising drug candidates managed through
cooperative deals with public and private partners. For specific
investments, the Global Alliance will also consider providing staged
funding and expert scientific and management guidance.
Contacts:
Gwynne Oosterbaan +1 212-227-7540 ext. 209
Joelle Tanguy +1 646-346-1649
Email: joelle.tanguy@tballiance.org
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