Measuring the impact of global research and development investment in product development partnerships: a case study on return on investment in antimalarial drug development.

Abstract

Product development partnerships (PDPs) are non-profit organisations that bridge the gap between the need for new treatments for poverty-related diseases and the resources available to develop them, leveraging a mix of public, philanthropic, multilateral, and private sector funding. We aimed to calculate two financial metrics to estimate the return on investments of drugs developed by the PDP Medicines for Malaria Venture (MMV) as a case study. The internal rate of return (IRR) and benefit-cost ratio (BCR) were used to estimate the economic return on investment for the PDP. IRR was based on total investments from 2000 to 2023 and health gains derived from PDP-supported drugs, measured as monetised disability-adjusted life-years (DALYs) minus the delivery cost of the products. BCR was calculated by dividing the present value of monetised DALYs by the present value of cost, indicating the overall efficiency and impact of the investments received by MMV. Total investment received was US$2·3 billion over the study period, and the antimalarial drugs developed and launched with the support of MMV averted an estimated 1·6 million deaths and 87 million DALYs for a cost of delivery estimated at $785 million. The IRR for the base scenario was 52·13% (95% uncertainty interval 52·11-52·16) and the BCR 12·99 (12·92-13·06). The substantial IRR and BCR generated by investment in antimalarial drug development suggest that the PDP model has a potentially pivotal role to play in global health. None.