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Should new antimalarial drugs be subsidized?
Ramanan Laxminarayan1, Ian W H Parry, David L Smith
1Resources for the Future, USA. ramanan@rff.org <ramanan@rff.org>
Journal of Health Economics
|April 13, 2010
Summary
Subsidies for artemisinin combination treatments can be economically justified to combat malaria drug resistance and reduce transmission. This approach deters single-drug use, mitigating resistance evolution and improving public health outcomes.
Area of Science:
- Health Economics
- Infectious Disease Control
- Pharmacoeconomics
Background:
- Malaria remains a major global health threat, causing over a million deaths annually.
- Parasite resistance to chloroquine has led to malaria resurgence, necessitating new treatments.
- Artemisinin-based combination therapies (ACTs) are effective but often unaffordable in endemic regions.
Purpose of the Study:
- To develop an economic framework for evaluating subsidies for artemisinin combination treatments.
- To analyze the conditions under which such subsidies are economically efficient.
- To assess the impact of subsidies on drug resistance evolution and disease transmission.
Main Methods:
- Development of a conceptual economic model.
- Construction of a numerical simulation framework.
- Analysis of externalities associated with single-drug versus combination-drug use.
Main Results:
- Subsidies can deter the use of less effective single-ingredient antimalarials, reducing resistance externalities.
- Expanding access to effective combination treatments can lower malaria transmission rates.
- The economic justification for subsidies depends on factors like resistance risk and welfare consequences.
Conclusions:
- Subsidies for artemisinin combination treatments may be warranted on economic efficiency grounds.
- These subsidies can address market failures related to drug resistance and disease externalities.
- A comprehensive economic framework is crucial for optimizing malaria control strategies.
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