Center for Global Health R&D Policy Assessment

The Health Impact Fund (HIF) aims to incentivize private sector participation in pharmaceutical R&D while keeping drug prices low, ensuring accessible health technologies. Its proponents argue that the current patent system for pharmaceuticals does not result in R&D for the diseases which have the highest global burdens. The HIF would offer product developers a 10 year payment from a fixed fund. The payment would be in proportion to the health impact of the product as compared to other products in the same treatment area. A product fulfilling a large unmet health need would reap a larger payment than a product with a relatively limited impact, and the outcome would be measured along a standardized unit like the QALY. In exchange for the secured payment, the firm would grant royalty-free licenses for generic production after the 10 year reward period. Participant developers can opt into the fund, but run the risk of diminishing payments as more product developers join. Preliminary discussions for a pilot of the fund are underway.