Breaking the European Deadlock: Part 2 - Transferable Exclusivity Vouchers – Effective Pull Incentive or a Policy Distraction?
Our latest insight discusses the potential use of Transferable Exclusivity Vouchers (TEVs) in Europe and their likely impact on incentivising antibiotic development.
🔍 What are TEVs?
TEVs reward pharmaceutical companies developing essential drugs with an exclusivity voucher to extend the patent on another product. The voucher's value depends on market dynamics, exclusivity terms, and sales values of qualifying products.
The European Commission has proposed TEVs in the form of an additional year of regulatory data protection to developers, subject to conditions. Key aspects include a limit of 10 vouchers over 15 years, strict criteria for eligible antimicrobials, transparent R&D cost contributions, and EU supply obligations.
Arguments for and against TEVs include legislative advantages at the EU level and potential opposition from generic/biosimilar manufacturers. Critics raise concerns about cost, efficiency, and alternative incentive routes like revenue guarantees and R&D push incentives.
Are there any concerns?
🔻Challenges include potential high "rent" for TEV winners and variability in exclusivity values.
🔻Other issues include differentiation for antibiotic quality, potential excess TEV awards, and addressing unforeseen circumstances.
Read our full insight here: https://lnkd.in/dhjPuPu9
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