GlobAl HeAltH InnovAtIon QuotIent prIze
Transcription
GlobAl HeAltH InnovAtIon QuotIent prIze
Global Health Innovation Quotient prize Point-of-Care Diagnostics for Differential Diagnosis of Fever in Children donor proposal April 2011 Global Health Innovation Quotient Prize: Point of Care Diagnostics for Differential Diagnosis of Fever in Children Copyright © 2011 BIO Ventures for Global Health All rights reserved This report was written by the team at BIO Ventures for Global Health with contributions from Elizabeth R. Aden and Dalberg Global Development Advisors. Authors’ note: We gratefully acknowledge the Bill & Melinda Gates Foundation for its financial support. We are grateful to Elizabeth R. Aden and the team at Dalberg Global Development Advisors: Timothy Carlberg, Vicky Hausman, and Wouter Deelder for their hard work and significant contributions to this document. We also thank our Industry Working Group for their feedback and support: David Friedman, David Steinmiller, Doug Dolginow, Geoff McKinley, John McDonough, Karen Hedine, Neil Butler, Patrick Beattie, Susan Bromley, Una Ryan, and William Rodriguez. We thank those at PATH and the Clinton Health Access Initiative who provided valuable input throughout the course of this work. Finally, thank you to all those interviewed during the course of this project for their time and effort to ensure the accuracy of the report. 2 BIO Ventures for Global Health Contents 1. Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2. Project Objectives and Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4. Need for a POC Fever Diagnostic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5. Target Product Profile (TPP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 6. Impact and Cost-Effectiveness of Proposed POC Fever Panel. . . . . . . . . . . . . . . . . . . 23 7. Guiding Principles for Incentive Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 8. Incentive Design and Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 a. Criteria of Each Milestone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 b. Number of Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 c. Size of the Milestone Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 d. Selection of Awardees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 e. Eligibility Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 f. Intellectual Property Considerations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 9. Incentive Administration and Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 10. Monitoring and Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 11. Financial Requirements Over Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 12. Impact Considerations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 a. Access Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 b. Supporting Interventions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Appendix A: Organizations and Individuals Consulted. . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Appendix B: Project Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix C: Disease Selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Appendix D: Integrating a Multiplexed Diagnostic into the IMCI Guidelines. . . . . . . 65 Appendix E: Definition of Terms Used in the Target Product Profile (TPP). . . . . . . . . . 68 Appendix F: Impact Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 3 BIO Ventures for Global Health The Need for Point-of-Care Diagnostics in Developing Countries: 1. Executive Summary many different infectious agents, some that are Children brought to clinics in developing countries frequently present with general symptoms, including fevers that could be caused by a wide range of diseases. curable with currently available treatments and Clinicians are often unable to isolate the root cause of others that are not. It is the rainy season and malaria illness and have difficulty making an accurate diagnosis cases fill the wards as they do each year. The clinic to determine the appropriate treatment needed to save a recently received rapid diagnostic tests for malaria child’s life. This presents an urgent threat to child health. and the doctor orders this test. Thirty minutes later, Each year more than 2 million children under the age of when the doctor looks at the results of the test, it five die from bacterial pneumonia infections; a further is negative for malaria. However, because there is 700,0001 children die from malaria. The vast majority of this no laboratory capability to test for other causes burden — more than 97% of pneumonia episodes — is of fever, and because the parents of this very sick carried by the developing world and could be avoided child are demanding treatment for malaria, the with appropriate diagnosis and treatment.2 A child comes into a clinic in rural Africa with a complaint of fever. That fever could be caused by doctor orders antimalarials for the child in any case. This scenario is repeated countless times across poor countries, as doctors and nurses are forced to deliver care without the benefit of modern diagnostic technology. However, there is currently no point-of-care diagnostic that can distinguish bacterial infections, such as bacterial pneumonia, from other fever-causing pathogens. The introduction of rapid diagnostic tests for malaria in These clinicians desperately need diagnostics that some regions has helped. But in the absence of differential can be used at the point of care, enable clinically POC diagnostic tests, clinicians are often unable to make relevant decisions, and are rugged enough to survive definitive diagnoses. A multiplex POC diagnostic for fever the conditions found in developing countries. would reduce mortality by providing earlier diagnosis to more people, enabling significantly higher clinical accuracy than currently unaided clinical diagnosis, and reducing misdiagnosis of pneumonia as malaria. Furthermore, the test would increase adherence to standard treatment protocols by minimally trained health care practitioners. 1 2 4 World Malaria Report 2009. World Health Organization. 2009. Pneumonia: The forgotten killer of children, The United Nations Children’s Fund (UNICEF)/World Health Organization (WHO), 2006. BIO Ventures for Global Health The potential health and economic benefits associated with a multiplex POC fever diagnostic are significant. To encourage development of a multiplex POC fever diagnostic, a pay-for-success, milestone-based prize is needed: An analysis of the data suggest that timely and accurate BIO Ventures for Global Health (BVGH) is committed to diagnosis of bacterial infections such as pneumonia could bringing the tools of biotechnology and the expertise of reduce child mortality among the population tested by the biopharmaceutical industry to bear on the problem 15-20%, saving more than 350,000 lives if universally adopted. of neglected diseases. Despite the immense need for a According to World Bank standards, such a diagnostic would POC fever diagnostic, industry investments to develop be considered cost effective in the developing world, in the such products remain limited, largely due to a lack of range of $80-160 per life-year saved in sub-Saharan Africa. attractive markets and financial returns. This is not an Beyond the direct impact on bacterial pneumonia mortality, insurmountable barrier. The Global Health Innovation the proposed diagnostic could have additional impact on Quotient Prize (IQ Prize) described in this proposal will the correct use of antimalarials and reduction of mortality provide financial support to companies that develop novel associated with other bacterial infections. technologies leading to a multiplex POC diagnostic for 3 fever symptoms that can serve the poorest populations Furthermore, universal adoption would reduce inappropriate use of antibiotics and delay the development of resistance to antibiotic treatment. affected by diseases such as malaria and bacterial pneumonia. Without the aid of modern diagnostic technologies, The IQ Prize will help encourage private sector investment in global health initiatives. clinicians often indiscriminately prescribe antibiotics. This Such a mechanism can reduce the amount of capital has led to potentially dangerous increases in resistance, investment required by the company and mitigate the which has increased the cost of fighting infectious technical, financial, and market risk associated with global diseases and potentially undermines investments made health research and development (R&D). Milestone- to increase access to drugs. A POC diagnostic would based prizes provide compensation in stages, linked to reduce unnecessary use of antibiotics contributing to the the successful achievement of key product development development of antibiotic resistance. milestones. This allows smaller, innovative companies with limited access to capital to participate in the development process, using interim payments to fund the next stage of work. 3 5 The World Development Report for 1993 (World Bank, 1993), which reviewed many public health interventions, suggests that interventions costing less than $150 per DALY saved are highly cost‐effective. These estimates are based on an assumed unit cost of testing ranging from $1.50 – 3. BIO Ventures for Global Health The Global Health Innovation Quotient Prize proposed in this document would provide for the following: From the donor perspective, the pay for-success nature of the prize has additional benefits. Rather than a fully-funded contract arrangement, which would require donors to ‘pick winners’ and technology A Target Product Profile (TPP) to ensure the resulting product meets the needs of developing countries as the standard for achievement sought. The TPP has been informed by 80 leading global health and industry stakeholders and reviewed by an industry working group of 12 potential developers; An open competition among diagnostic developers having the capability to achieve all or part of the TPP and that are willing to participate and agree to the rules of the competition; A milestone structure that is familiar to industry participants, rewarding successful completion of key inflection points in the development of a novel POC diagnostic, meeting the predetermined requirements and providing adequate commercial incentive to motivate industry participation; Payment only for milestones achieved during the competition, i.e., no payment for prior results, although a competitor could enter midstream if earlier milestones have been satisfied. A fixed, maximum number of awards at each milestone to cap the amount donors would have to approaches at the outset of the work, a pay-for-success incentive prize allows for the participation of a greater number and broader range of diagnostic developers and technology approaches – reducing the overall risk to the donor of product development failure. Combined, a milestone-based, pay-for-success approach would be attractive to both industry and donors. Donor support of approximately $150 million over 8 years would be required to implement the proposed prize for significant health impact in the developing world: The proposed Global Health Innovation Quotient Prize (IQ Prize) was informed by interviews with more than 80 experts in the fields of global health and diagnostics development. It is estimated to cost approximately $150M over an 8-year period and is expected to result in two novel POC diagnostic products available to children (and adults) in the developing world. The target product is designed to be low-cost, portable, simple to use and durable enough to withstand resource-poor environments. The impact of the IQ Prize would be supported by a comprehensive access plan and a number of supporting interventions to ensure successful integration of the new diagnostics into established health care systems. reserve for payment; Objective determination by an expert working group as to whether each milestone is achieved 6 BIO Ventures for Global Health 2 Project Objectives and Approach 2. Project Objectives and Approach At BVGH, we help for-profit companies find commercially viable ways to participate in global health. It is essential The Global Health Innovation Quotient Prize proposed in this report has dual objectives: to engage private-sector companies—particularly document that follows is a proposal for a commercial To spur R&D efforts to develop a new POC diagnostic test for the differential diagnosis of fever that can generate significant health impact in the developing world. incentive structure that we believe will engage industry, We propose in this document a milestone-based prize to particularly small- to medium-sized diagnostic developers, promote the development and launch of a POC diagnostic in global health R&D. test for the differential diagnosis of fever, targeted primarily entrepreneurial biotechnology companies with a track record of innovating new products—in the effort to prevent, diagnose, and treat neglected diseases in the developing world. In line with our overall objectives, the at children less than 5 years of age. We believe that a POC This proposal is informed by more than 80 consultations diagnostic platform that meets our TPP has the potential with a broad range of stakeholders, including: the to lead to a significant reduction in child mortality from executive teams and venture capital investors of diagnostic pneumonia and other bacterial infections and to delay the companies both large and small; global health experts onset of antibiotic resistance. We further believe that the working to support the development and introduction of milestone-based prize proposed here is a cost-effective new diagnostic tools; clinicians working in low-resource intervention to achieve this result. settings in developing countries; and academic experts presented in this report. A full list of individuals and To demonstrate the value of a milestone-based, pay-for-success prize structure in motivating key players along the product development value chain. organizations consulted in the report and participating on We believe that a well-designed incentive should mitigate the Industry Working Group can be found in Appendix A the technical, financial, and market risk to companies and more information on our approach and methodology associated with developing world POC diagnostic platforms can be found in Appendix B. on a pay-for-success basis. We recognize that innovation in incentive design. Additionally, a high-level Industry Working Group was convened to validate the prize design structure and key assumptions in the financial analysis often thrives in small- and medium-sized enterprises that lack sufficient resources and capacity to make multi-year investments, as illustrated in the chart below. 8 BIO Ventures for Global Health Figure 1: Source of New Drugs Approved by U.S. FDA, 1998-20074 Therefore we have designed a milestone-based prize that rewards attainment of clearly defined product development milestones and that would ensure participation of a broad range of companies. This prize structure could serve as a platform for other incentive programs and could stimulate innovation in fields outside of POC diagnostics. We believe that this structure will resonate with both donors and innovators and can be widely applied in order to advance the prevention, diagnosis, and treatment of neglected diseases in the developing world. Kneller, Robert, “The importance of new companies for drug discovery: origins of a decade of new drugs.” Nature Review. Volume 9. November 2010. 4 9 BIO Ventures for Global Health 3 Introduction 3. Introduction Over the past decade, donor and government institutions accurate, inexpensive, and portable; capable of operating have invested billions of dollars in R&D to prevent and without clean water or electricity; able to withstand high treat neglected diseases — such as malaria and pneu- temperatures and humidity; and simple enough to be used monia — which primarily affect underserved people in the by minimally-trained health care workers. developing world. Unfortunately, only 4% of this annual hundreds of thousands of lives each year by detecting The Need for a POC Diagnostic to Support Differential Diagnosis of Children with Fever diseases that can be treated effectively if caught in the Globally, nearly 9 million children die each year before early stages and by reducing the inappropriate use of they reach the age of five.7 Of that number, approximately medication due to misdiagnosis. Therefore, the small 2 million die from lower respiratory infection (LRI) due percentage of investment in diagnostics relative to other to pneumonia.8 As a result, Millennium Development products is surprising and concerning. Goal 4 was created to prioritize child mortality. Many of spending has been directed towards diagnostics.5 New forms of diagnostic technology have the potential to save the primary causes of childhood mortality — including It is essential to find avenues to spur increased investment pneumonia, meningitis, malaria, and HIV/AIDS — present in diagnostic development for the developing world— with non-specific symptoms such as fever and cough. to reduce mortality, improve health outcomes, delay The Integrated Management of Childhood Illness (IMCI) resistance to antibiotics, and improve the cost effectiveness guidelines, developed jointly by the World Health of current interventions. Organization (WHO) and UNICEF, provide a tool to help health care practitioners evaluate patient symptoms, The Importance of POC Diagnostics make presumptive diagnoses, and treat accordingly. Private-sector innovation is driving improvements that However, the absence of definitive diagnostic tools and have primarily been implemented through central tests to support these guidelines in low resource settings laboratory testing in the developing world, a system can lead to incorrect and delayed treatment, prolonged which is consistent with developed world infrastructure, illness, or overuse of unnecessary medications. A new access, and treatment availability. Yet infrastructure- multiplex POC diagnostic for differential diagnosis of intensive laboratory-based solutions will never fully meet fever presents an opportunity to have an immediate the needs of patients in low resource settings. In the impact on child health. developing world, improved access to diagnostics depends on developing POC diagnostic tools in the form of rapid tests or small handheld devices that can be used in low resource, minimal infrastructure settings. In order to reach the majority of patients in developing countries, where as many as 70% of individuals only have access to minimal levels of health care infrastructure if any,6 diagnostic tests must meet certain requirements. Tests must be 5 6 7 8 11 -Finder 2011. “Neglected Disease Research & Development: Is the Global Financial Crisis Changing R&D? Policy Cures.” 2011. G Girosi, F., S. Olmsted, et al (2006). “Developing and interpreting models to improve diagnostics in developing countries.” Nature 444 Suppl 1: 3-8. UNICEF/WHO (2006). “Pneumonia: The forgotten killer of children.” UNICEF/WHO (2006). “Pneumonia: The forgotten killer of children.” BIO Ventures for Global Health The Potential for Technological Breakthroughs preparation, and detect broad panels of analytes— There are a limited number of POC diagnostics available These new technologies have the potential to simplify for use in low resource developing world settings, the number of platforms required to address the needs of primarily for malaria and HIV diagnosis. Their successful the developing world. including proteins, nucleic acids, and small molecules. adoption in developing countries has begun to support the shift in health care delivery from a clinically-based, The rapid evolution of in vitro diagnostic technologies presumptive treatment model towards a “test and treat” offers realistic hope that products being created by both paradigm. There is a need for POC tests that can detect large and small companies could be adapted for the an array of additional pathogens, such as multiplex tests developing world. In our extensive interviews with that span multiple diseases with related symptoms. Over diagnostic companies, we found a strong interest in time, this will better enable effective case management exploring ways to assist in the fight against neglected of individuals while at the same time inform population- diseases. At the same time, companies reinforced their level epidemiologic surveys that are critical indicators position that they will be unable to commit their resources of the overall effectiveness of interventions. Rather to this goal in the absence of a financial model that makes than developing new single pathogen tests or running a compelling business case. existing tests in parallel, development of multiplex tests using a common sample type (urine, blood, saliva, etc.) The Need for Incentives to Spur Diagnostic Development for Neglected Diseases to differentiate between illnesses with similar symptoms. The hurdles to industry involvement in meeting the This would allow healthcare workers to obtain differential needs of the developing world are high. The commercial diagnoses and would help them to identify and treat prospects for the next generation of POC diagnostics in the diseases that often occur simultaneously. developed world are unproven due to uncertain market to identify relevant panels of disease is needed, ideally competitiveness with existing laboratory-based solutions. Fortunately, technological innovations are emerging While a clear need exists in the developing world, the lack that could address many of the unmet diagnostic needs of secure distribution channels along with the limited for neglected diseases. These innovations were the focus of BVGH’s 2010 report: The Diagnostics Innovation Map: Medical Diagnostics for the Unmet Needs of the Developing World. In that report, we highlighted the potential of new and emerging POC diagnostic platforms. These innovations hold the potential to dramatically change the diagnostic paradigms in the developing world. Some of these diagnostic technologies have the capacity to run multiple tests in a variety of sample types simultaneously, simplify process steps like sample 9 12 G-Finder 2011. “Neglected Disease Research & Development: Is the Global Financial Crisis Changing R&D?” Policy Cures. 2011. BIO Ventures for Global Health ability of consumers to pay create barriers to industry investment. Public and donor support will be needed to initiate, and in some cases to sustain, private-sector product development efforts, including market-based incentives that provide downstream financial returns. Non-governmental organizations and government bodies are increasingly aware of the need for and value of diagnostic products. A key example of this is the fact that funding to purchase existing diagnostics and improve training and laboratory facilities has increased dramatically through programs such as the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), the Global Fund to Fight HIV/AIDS, Malaria and Tuberculosis, the World Bank, and UNITAID. Yet the funding to support innovation of POC diagnostics for the developing world has not received comparable backing, despite the continued efforts of donors and product development partnerships such as the Bill & Melinda Gates Foundation, Grand Challenges Canada, PATH and FIND Indeed, in 2009, diagnostics accounted for less than 4% of total global health R&D spend.9 Developing the next generation of POC platforms will enable effective diagnosis in the developing world. Without market forces to drive these developments, the global health community will need to create financial incentives that will encourage companies to invest in diagnostics for low resource settings. The remainder of this proposal presents what our analysis has indicated to be an effective design for such an incentive program — one that would both motivate industry and create impact for donors — and that would attract the support necessary to make it happen. The proposal includes: • A n initial analysis of the potential health impact of a new POC diagnostic test for differential diagnosis of fever in children under 5 in the developing world, in terms of both lives saved and second-order benefits such as delayed resistance to antibiotic treatments. A perspective on the potential cost-effectiveness of such a diagnostic intervention is also presented. • A proposal for the Global Health Innovation Quotient Prize that could be used to motivate diagnostic companies to engage in developing new POC diagnostics for use in differential diagnosis of fever in children under 5. We propose a structure which is informed by substantial stakeholder input and relevant data, understanding that many of the design elements of our structure could be modified based on markets, industry perspectives, or funder needs. • A quantification of the financial requirements estimated to be associated with supporting such an incentive program from the perspective of potential donors. • An overview of impact considerations that are critical to the success of the incentive program, including: - a plan to ensure broad access to diagnostic tests developed through this program - a range of supporting interventions that will support the ultimate impact of the program - a proposal for an effective monitoring and evaluation framework to measure impact • A proposal for organizational structure, governance, and administration of the incentive mechanism. 13 BIO Ventures for Global Health 4 Need for a POC Fever Diagnostic 4. Need for a POC Fever Diagnostic Disease Burden Causes of childhood mortality presenting with non-specific Millennium Development Goal 4 aims to reduce mortality febrile symptoms account for more than 30% of total of children under the age of 5 by two-thirds between global childhood mortality12 (Figure 2). These diseases 2009 and 2015. Although this mortality rate is decreasing are highlighted in the figure below. Please note that these (between 1990 and 2008, there was a 28% reduction in estimates may be conservative, as more recent data on child annual mortality), the pace of decline is insufficient to mortality due to malaria published in the 2009 World Malaria meet the 2015 goal.10 Nearly 9 million children die each Report are significantly higher than that cited by the WHO year before they reach the age of five, and many of these Global Burden of Disease report referenced in the table below, children could be saved with access to accurate diagnosis with estimates ranging upwards of 700,000 deaths per year:13 and effective treatment. 11 Many of the primary causes of childhood mortality — including pneumonia, meningitis, malaria, and HIV/AIDS — present with non-specific symptoms such as fever and cough. The absence of definitive diagnostic tools and tests to support clinical diagnostic guidelines in low resource settings can lead to incorrect and delayed treatment, prolonged illness, or overuse of unnecessary medications. Figure 2: Global Deaths and DALYs Per Year in Children Under Five14 Disease Deaths Deaths, as percent of total under 5 mortality DALYs, in millions Pneumonia 2,000,000 19.0% 33.0 Malaria Meningitis 397,000* 82,000 7.3% 1.5% 15.0 3.2 TB 23,000 0.4% 0.8 HIV 131,000 2.4% 4.5 * As noted, these estimates are widely viewed as conservative, with more recent data on child mortality due to malaria published in the 2009 World Malaria Report estimated at upwards of 700,000 deaths per year (World Malaria Report 2009; World Health Organization. 2009). United Nations Millennium Declaration, September 2000; http://www.un.org/millenniumgoals/ Pneumonia: The forgotten killer of children, The United Nations Children’s Fund (UNICEF)/World Health Organization (WHO), 2006. 12 Diseases described here and in the subsequent figure exclude diarrheal diseases, measles, and other causes of childhood death that present with specific symptoms (i.e. diarrhea, maculopapular rash, etc.) beyond the non-specific symptoms of fever and cough. 13 World Malaria Report 2009; World Health Organization. 2009. 14 WHO (2004) Global Burden of Disease; UNICEF/WHO (2006) “Pneumonia: The forgotten killer of children.” 10 11 15 BIO Ventures for Global Health The ability to confidently diagnose the cause of fever and In contrast, in low resource settings in the developing world, treat appropriately has the potential to make a significant disease diagnosis and subsequent treatment are generally impact on child mortality. A new multiplex POC diagnostic made on a presumptive basis using only clinical evaluation. for differential diagnosis of fever presents an opportunity The majority of health care in these settings is provided to make an immediate impact on child health. by nurses, community health workers, informal health practitioners, and family members with varying degrees Current Diagnostic and Treatment Algorithm of training. Unlike the developed world, where laboratory Differential diagnosis of diseases with related or care practitioners in low resource settings rarely have access overlapping symptoms is fundamental to the practice of to the laboratory facilities needed to confirm a presumptive medicine. In order to make a treatment decision in the diagnosis. In order to help reduce deaths in children, WHO developed world, medical professionals use a combination in collaboration with UNICEF developed the Integrated of clinical evaluation (including assessment of patient Management of Childhood Illness (IMCI) as a training tool symptoms, patient history, and physical exam findings) and reference guide for health care workers in low resources and laboratory diagnostics (including disease specific settings. This treatment algorithm describes danger signs tests, general blood chemistries, and serology) to narrow and common symptoms to guide referral for urgent care or down the list of possible diagnoses. The diagnosis that best presumptive treatment of children. Please note that a full accounts for both the clinical and laboratory findings is the description of the need for definitive diagnostic tools and the initial diagnosis for which the patient is treated. potential impact of the proposed multiplexed POC diagnostic testing can be used to supplement clinical diagnosis, health on the IMCI guidelines are presented in Appendix D. Figure 3: Treatment Guidelines for Febrile or Pneumonia-Like Illnesses Based on IMCI15 15 16 Presenting Symptoms Signs Used for Diagnosis Treatment Danger signs/Severe disease Convulsions, lethargic/unconscious, unable to feed, continuous vomiting, chest in drawing, stiff neck Give antimalarial (usually IM quinine or artemether) and antibiotic (IM ampicillin or gentamicin), refer immediately Cough/Shortness of breath (SOB) and Fever Fast breathing High malaria risk area Give antibiotic for pneumonia (oral co-trimoxazole or oral amoxicillin) and antimalarial (ACT) Fever No runny nose No measles No other obvious cause of fever High malaria risk area Antimalarial (ACT) Cough/Shortness of breath (SOB) Fast breathing Give antibiotic for pneumonia (oral co-trimoxazole or oral amoxicillin) UNICEF/WHO (2008) “Integrated Management of Childhood Illness.” BIO Ventures for Global Health Introduction of Malaria Rapid Diagnostic Tests (RDTs) ACTs, was first detected.17 Definitive diagnosis of malaria, Building on the groundwork laid by the IMCI guidelines for in low resource settings, is now recommended prior to clinical diagnosis, inexpensive lateral flow diagnostics that giving ACTs in order to protect the efficacy of this valuable provide rapid point of care diagnosis of malaria are now medication.18 According to the 2010 World Malaria Report, available to confirm or eliminate malaria as the underlying outside of Africa around 80% of suspected malaria cases cause of fever. The rationale for the development and use are assessed with a microscopic or rapid diagnostic. In of malaria RDTs is based on concerns about the high cost Africa, the number of ACTs distributed is more than 2.4X of artemisinin combination therapies (ACTs) and the risk the number of microscopic or rapid diagnostics performed, for the emergence of drug resistance to these medications. suggesting there are still shortfalls in access to diagnostics using either traditional laboratory techniques or RDTs in the region.19 Due to increasing drug resistance to inexpensive existing antimalarial treatments, the WHO recommended that ACTs Although malaria RDTs provide numerous benefits over replace chloroquine as the gold standard for the treatment traditional laboratory diagnostic techniques in resource of uncomplicated malaria in 2002. ACTs are significantly poor settings, the limitations of malaria RDTs have been more expensive (10 to 40X the price) than chloroquine realized in the field. Health care workers using malaria and other previous antimalarial treatments, therefore RDTs in resource limited settings are not equipped to make judicious use of ACTs is important to mitigate their relative an alternative diagnosis when a patient with suspected higher cost. Additionally, the prevalence of chloroquine malaria tests negative. In some trials, this has resulted in and other antimalarial drug resistance has raised concerns administration of antimalarials despite a negative test about the potential for ACT drug resistance to arise. In result or the increased use of presumptive antibiotic 2009, resistance to artemisinin, a key active ingredient in therapy.20 The benefits and limitations of these POC 16 diagnostic tests are summarized in Figure 4. Figure 4: Benefits and Limitations of Malaria RDTs in Diagnosing Cause of Fever Benefits • Can be used in resource limited settings with minimal training • Results available quickly to guide treatment and monitor disease spread • Do not require specialized laboratory equipment 16 17 18 19 20 17 Limitations • A negative individual malaria test does not provide guidance or suggestions for alternative diagnosis of the patient • The presence of malaria, as determined by an individual malaria test, does not rule out the possibility that the patient’s symptoms are caused by a co-infection such as pneumonia MFm Task Force of the Roll Back Malaria Partnership (November 2007). “Technical Design for the Affordable Medicines Facility – malaria.” A Dondorp AM et al (2009) “Artemisinin resistance in Plasmodium falciparum malaria.” New England Journal of Medicine 361: 455-467; WHO (2010) Global Report on Antimalarial Drug Efficacy and Drug Resistance: 2000-2010. WHO (2011) Global Plan for Artemisinin Resistance Containment; The malERA Consultative Group on Health Systems and Operational Research (2011) “A Research Agenda for Malaria Eradication: Health Systems and Operational Research.” PLoS Medicine 8: e1000397; The malERA Consultative Group on Diagnoses and Diagnostics (2011) “A Research Agenda for Malaria Eradication: Diagnoses and Diagnostics.” PLoS Medicine 8: e1000396. WHO (2010) World Malaria Report 2010. Reyburn H et al (2006) “Rapid diagnostic tests compared with malaria microscopy for guiding outpatient treatment of febrile illness in Tananzia: randomized trial.” BMJ 334: 403.; Msellem MI et al (2009) “Influence of rapid malaria diagnostic tests on treatment and health outcome in fever patients, Zanzibar: a crossover validation study.” PLoS Medicine 6: e1000070. BIO Ventures for Global Health Benefits of a Multiplex POC Diagnostic Tool “differential” through multiplexed assays rather than In order to increase the utility of POC diagnostic tests in through sequential test selection. Multiplex POC diagnostic low resource settings, multiplex POC diagnostic tests that tests therefore offer both medical and logistical benefits evaluate panels (or groups) of symptomatically related over single POC diagnostics. diseases are needed, either in the form of rapid diagnostic tests or small, portable devices. Although individual tests In the case of fever, diagnosis of bacterial pneumonia for each individual potential cause of fever could be offers the opportunity to complement the current IMCI developed in a form that can be used at the point of care, guidelines for clinical diagnosis as well as build on the it is not feasible or practical for a minimally trained health advances in rapid POC diagnostics made in the malaria worker to select, run, and interpret multiple individual field. In 2004, pneumonia deaths made up the largest tests. A multiplex POC diagnostic test would allow the proportion of mortality for children under age 5 (see minimally trained health worker to perform multiple tests Figure 5). Development of a diagnostic that targets simultaneously in one device, producing a single answer multiple diseases with high under-five mortality, especially with standardized readout and interpretation. This type malaria and pneumonia, is a key step towards improving of test offers a key tool to recapitulate the differential appropriate treatment and reducing child mortality. diagnosis performed in developed world health care settings by allowing the test or device to perform the Figure 5: Pneumonia is the Leading Cause of Mortality among Children under Five21 21 18 UNICEF/WHO (2006) “Pneumonia: The forgotten killer of children” BIO Ventures for Global Health Unlike malaria, which is caused by a limited number of related parasitic organisms, pneumonia can be caused by a variety of bacterial or viral organisms. While no specific treatment of viral pneumonia is available, bacterial pneumonia is treatable with antibiotics, thus the recommendation in the IMCI guidelines for presumptive antibiotic treatment of those with pneumonia-like symptoms. Although most antibiotics are inexpensive relative to the ACTs used to treat malaria, drug resistance to antibiotics is a growing concern. The two key benefits of multiplexing pneumonia and malaria diagnostics are: 1) Increasing the diagnosis of bacterial pneumonia, which previously may have been missed due to a lack of pneumonia tests that can be used in resource poor settings or due to positive malaria RDT results in a person with multiple infections. 2) Reducing the risk of antibiotic resistance by ensuring that antibiotics are used only for bacterial pneumonia rather than being overprescribed presumptively for patients who actually have malaria or viral pneumonia. There may be additional benefits that we have not fully modeled in this paper – including extending the life of antimalarial treatments as they would be less often prescribed when a child tests negative for malaria after the introduction of the proposed diagnostic. In the following sections, a specific Target Product Profile for a multiplexed fever panel diagnostic is presented along with a quantitative analysis of the potential impact of this diagnostic on health and antibiotic resistance. 19 BIO Ventures for Global Health 5 Target Product Profile (TPP) 5. Target Product Profile (TPP) Introduction Based on the unique requirements of developing world Operational Requirements for Minimal Infrastructure Settings settings, we have developed both “minimal” and “optimal” Beyond the biological specifications outlined in the TPP, TPPs that lay out our “must have” and “nice to have” additional criteria that ensure the test is appropriate for recommendations for the minimally acceptable and optimal use in minimal infrastructure developing world settings are requirements for the diagnostic test for this incentive outlined. These are adapted from WHO ASSURED criteria program. The minimal and optimal TPPs are in Figure 6. for diagnostic tests for resource poor settings.22 The need for smaller, more resource-efficient diagnostics is great in The preliminary TPP is designed to outline requirements for Africa—where more than 70% of the population is located a diagnostic device that can guide differential diagnosis and in settings with minimal or no infrastructure.23 These treatment of febrile illness, including in children under 5 years criteria are designed to increase the usefulness of a device old. The goal of the TPP is to ensure that the diagnostic: in the field, thus facilitating uptake and integration of a • Is clinically useful to endemic country successful device into standard health practices. health care providers; • Is both ambitious and technologically feasible; and Technology Focus • Fosters innovation to increase health impact. The TPP does not specify which type of technology should be the basis of the minimal and optimal diagnostic platform. Additional TPP details and definitions of key terms can be It is desired that a full range of technologies, including found in Appendix E: Target Product Profile. immunoassay-based, molecular/nucleic acid- based, and novel innovative detection systems, will be explored Product Focus through the proposed incentive program. Please also note The diagnostic tool outlined in the TPP is designed that the TPP currently provides only guidelines for target to identify malaria, bacterial pneumonia, and other ex-works price of the diagnostic test. The target prices bacterial infections at the point of care such that patients provided will be refined based on additional analysis prior receive antimalarial or antibiotic treatments only when to the launch of the milestone-based prize, as part of the appropriate. A more detailed account of the disease process of validating the TPP. Please also note that these selection for the fever panel can be found in Appendix prices are for the assay only and do not take into account C: Disease Selection Criteria. The test should give the cost of the device itself, should one be required. confidence to health care workers either to treat according to appropriate clinical practice standards for any disease(s) identified through diagnosis, or to withhold antimalarial or antibiotic treatment for patients with no additional defining clinical symptoms and who test negative for all diseases included on the panel. 22 23 21 The World Health Organization (WHO) has suggested criteria for ideal diagnostic tests for resource-poor settings using the acronym ASSURED: Affordable by those at risk of infection, Sensitive, Specific, User-friendly (simple to perform with minimal training), Rapid (enabling treatment at first visit) and Robust (does not require refrigerated storage), Equipment-free, and Delivered to those who need it. Urdea M, et al (2006) “Requirements for high impact diagnostics in the developing world.” Nature. 23;444. Girosi, F., S. S. Olmsted, et al. (2006). “Developing and interpreting models to improve diagnostics in developing countries.” Nature 444 Suppl 1: 3-8. BIO Ventures for Global Health Figure 6: Target Product Profile Fever Panel Target Product Profile Disease / Pathogen •Malaria: definitive and distinct diagnosis of Plasmodium falciparum and P. vivax. • Bacterial pneumonia: diagnosis of bacterial pneumonia by either definitive diagnosis of each of the three major pathogens causing bacterial pneumonia or diagnosis as a group of organisms through novel biomarkers: Streptococcus pneumonia, Staphylococcus aureus, Haemophilus influenzae B. • Supplemental pan-bacterial marker: One or more known general biomarker(s) for bacterial infection24 to provide “rule-in” diagnosis of other bacterial infections that should receive antibiotic treatment or suggest referral for further testing even without definitive diagnosis, including atypical bacterial pneumonia and bacterial meningitis. A single biomarker or multiple biomarkers that comprise a signature are acceptable. • (Optimal) Supplemental pan-viral marker: general biomarker or multiple biomarkers that comprise a signature for common viral causes of fever, to confirm in patients who are entirely negative by the fever panel diagnostic that antibiotics should not be given. • (Optimal) Active tuberculosis: definitive and distinct diagnosis of Mycobacterium tuberculosis. • (Optimal) HIV: definitive and distinct diagnosis of human immunodeficiency virus. Goal of Test Differential diagnosis of the cause of fever for treatment, including in children <5 Reference Test Culture and microbiologic testing for bacterial diseases and microscopy for malaria Sensitivity • • • • • • P. falciparum – 95% P. vivax – 95% Streptococcus pneumoniae – 95% Staphylococcus aureus – 95% Haemophilus influenzae B – 95% Supplemental pan-bacterial marker(s) that, in combination with pathogen-specific markers above, can identify all bacterial pneumonia with an overall sensitivity of 95%. • Supplemental pan-viral marker(s) – Best in class • Tuberculosis – Best in class • HIV – Best in class Specificity Each individual pathogen above, 85% Each individual pathogen above, 80% Reproducibility >95% >85% Optimal Minimal Biological Principle Sample preparation Special Handling/ Equipment Refrigeration requirements Power requirements Stability Water requirements Training Required Time to result Duration of valid result Precautions Steps to Test Result Patient Record Test/Platform size Target Ex-Works Price25 24 25 22 P. falciparum – 90% P. vivax – 90% Streptococcus pneumoniae – 90% Staphylococcus aureus – 90% Haemophilus influenzae B – 90% Supplemental pan-bacterial marker(s) that, in combination with pathogen-specific markers above, can identify all bacterial pneumonia with an overall sensitivity of 90%. Not pre-determined Quality Control Test Result & Interpretation Interfering Diseases Specimen / Sample • • • • • • Positive and negative control required Visual readout that directs treatment without manual data interpretation None One of the following sample types: blood, saliva, sputum, mouth swab, or urine One or more of the following sample types collected in a single patient visit: blood, saliva, sputum, mouth swab, urine None required (sample preparation/processing internal to device acceptable) None required None required Prefer none, renewable battery power (e.g., solar recharger) acceptable 24 months at 55°C and 90% humidity 18 months at 45°C and 80% humidity No running water required Minimal: visual and intuitive interface and instructions; no language requirements to operate instrument; no more than 1 page of instructions <10 minutes <30 minutes >72 hours >24 hours Safe specimen / sample management 5 or less steps to result Patient identification required Handheld device; <5 lbs / 100 tests Portable device; <10 lbs / 100 tests $2-5, plus cost of device if one is required $2-5, plus cost of device if one is required Such as procalcitonin Target ex-works price provided here should be considered a guideline. These target prices will be refined based on additional analysis prior to the launch of the incentive, as part of the process of validating the TPP. These prices are for the assay and do not take into account the cost of the device itself, should one be required. BIO Ventures for Global Health 6 Impact and Cost-Effectiveness of Proposed POC Fever Panel 6. Impact and Cost-Effectiveness of Proposed POC Fever Panel This section presents the results of a preliminary systematic immunization of children could significantly analysis to quantify the impact and cost-effectiveness reduce child mortality due to lower respiratory infections. of the proposed POC fever panel.26 While a multiplex Still, given that the vaccine has not yet been widely POC diagnostic for fever has the potential to replace adopted and data on expected penetration rates are not standalone malaria diagnostics in a clinical setting, the yet available, we have estimated the potential impact of modeling described in this proposal focuses primarily on the proposed diagnostic test based on the best currently the additional impact of the multiplex test on bacterial available data of child mortality. pneumonia mortality. Impact on malaria mortality is assumed to be comparable to previous estimates for As shown in Figure 7 below, the overall global mortality existing diagnostics. due to pneumonia would drop an estimated 15%-20% 27 among the population treated as a result of introducing Preliminary estimates suggest that the fever panel the proposed POC diagnostic. If the aggressive goal of could reduce mortality among the population served universal adoption were achieved, this implies that the by 15-20% (saving more than 350,000 lives if rolled out proposed diagnostic has the potential to save between globally), reduce inappropriate use of antibiotics, and 355,000 and 460,000 children per year. The number of lives delay resistance to antibiotic treatment. Further, at the saved would be especially high in sub-Saharan Africa and assumed target price of $2-5, the intervention would be India. The impact would of course be significantly lower until cost effective in the developing world by widely accepted high levels of adoption are achieved, which may take several World Bank standards, in the range of $106-271 per life- years following product introduction. year saved in sub-Saharan Africa. 28 The proposed multiplex POC diagnostic will have Impact on Health: significant impact at all infrastructure levels, but will make The impact of the proposed multiplex POC diagnostic on the most noticeable impact in rural areas. In settings with disease burden was analyzed using children under age 5 minimal infrastructure, the new diagnostic will provide (excluding neonates) and for bacterial pneumonia only. The earlier diagnosis to more people, have significantly higher benefit of the proposed diagnostic is directly correlated accuracy than current unaided clinical diagnosis, and with the increased treatment of bacterial pneumonia and reduce misdiagnosis of pneumonia as malaria. initial estimates suggest that the new diagnostic could contribute to a significant reduction in the mortality from this disease. However, it should be acknowledged that the potential for reducing child mortality may be mitigated by parallel health interventions, such as the roll-out of the pneuomoccal vaccine that is currently underway. The introduction of the pneumococcal vaccine and the 26 27 28 24 Dalberg Global Development Advisors supported BVGH to help determine the impact of the fever panel. These estimates should be interpreted as preliminary. Due to on-going validations with external experts, and due to the strong sensitivity to the final characteristics of the new diagnostic and ongoing changes in wider health systems, results are not absolute. Uzochukwu BS et al. (2009) “Cost-effectiveness analysis of rapid diagnostic test, microscopy and syndromic approach in the diagnosis of malaria in Nigeria: implications for scaling-up deployment of ACT” Malaria Journal 8: 265. The World Development Report for 1993 (World Bank, 1993), which reviewed many public health interventions, suggests that interventions costing less than $150 per DALY saved are highly cost‐effective. These are based on an assumed unit cost of testing ranging from $2-5. BIO Ventures for Global Health Figure 7: Lives Potentially Saved Due to Fever Panel Pneumonia Deaths (<5 years)29 Potential Reduction in Pneumonia Mortality (%)30 Potential Lives Saved (universal roll-out) 1,100,000 15-20% 165,000 – 220,000 India 700,000 20-25% 140,000 – 175,000 China 100,000 20-25% 20,000 - 25,000 Latin America 50,000 15-20% 7,500 – 10,000 N. America and Europe <2,000 5-10% 100 – 200 150,000 10-15% 22,500 – 30,000 2,100,000 15-20% 355,000 – 460,000 Region Sub-Saharan Africa Rest of World Global Maximizing the impact of the proposed diagnostic will be a supplemental pan-bacterial biomarker on the fever aided by integrating a successful product into the WHO/ panel increases the likelihood that additional bacterial UNICEF IMCI guidelines. A more detailed analysis of the infections beyond bacterial pneumonia, such as bacterial potential role and impact of the proposed diagnostic on the meningitis, strep throat (the underlying cause of rheumatic IMCI guidelines is included in Appendix D: Integrating a heart disease), or sepsis, will be detected. The proposed Multiplexed Diagnostic into the IMCI Guidelines. diagnostic has the potential to reduce mortality associated with these other bacterial infections, but this potential Beyond the direct impact on bacterial pneumonia impact has not been quantified here. However, while we mortality in children under the age of five, the proposed feel our estimates are conservative in these aspects, the multiplex POC diagnostic could have additional health roll-out of the pneumococcal vaccine, as noted, would impact. The test would not be restricted to use in children decrease the incidence of bacterial pneumonia and will under the age of 5 and therefore would have additional therefore reduce to an uknown extent these estimates of impact on other age groups. Furthermore, inclusion of lives saved through use of the proposed diagnostic. 29 30 25 The Race against Drug Resistance, A report of the Center for Global Development’s Drug Resistance Working Group. The Center for Global Development (June 15, 2010), Press release “When Medicines Fail” BIO Ventures for Global Health Figure 8: Reduction in Antibiotic Prescription for Bacterial Pneumonia Region SubSaharan Africa India China Latin America North America, Europe Rest of World Reduction in antibiotic prescription (%) 5 -10% 10-15% 15-20% 15-20% 5-10% 10-15% Reduction in inappropriate antibiotic prescriptions per year 20-25M 30-35M 25-30M 25-30M 10-15M 50-55M Impact on Antibacterial Resistance The resulting impact of delayed antibiotic resistance from In the developing world, millions of children die annually improved diagnoses has not been included in either the from drug resistant disease strains.31 While donors have mortality or the cost-effectiveness calculations presented spent more than $1.5 billion on advanced drugs to treat in this document, and should therefore be considered resistant diseases, since 2006, few interventions have an additional improvement to these estimates. More specifically targeted reducing the use of antibiotics. information on antibacterial resistance is presented in Another key benefit of the fever panel would be its impact Box 1: The rising concern of antibacterial resistance. 32 on delaying the onset of antibiotic resistance through more accurate diagnosis of bacterial infection and the resulting reduction of inappropriate use of antibacterial medication. Figure 8 provides the anticipated reduction in antibiotic usage resulting from universal adoption of a multiplex POC diagnostic for fever. 31 32 26 The Race against Drug Resistance, A report of the Center for Global Development’s Drug Resistance Working Group. The Center for Global Development (June 15, 2010), Press release “When Medicines Fail” BIO Ventures for Global Health Box 1: The Rising Concern of Antibacterial Resistance33,34,35,36,37 For many years, respiratory infections were inexpensively In 2009, the United States and the European Union cured with penicillin, one of the world’s first antibiotics. established a transatlantic task force to address antibiotic Today, penicillin effectively treats only half of the S. resistance. One of the primary objectives for this group was pneumoniae strains circulating in many developed and the promotion of appropriate therapeutic use of antibacterial developing countries, and less than a quarter of strains in medication. To highlight the severity of the problem, the WHO certain regions. In 1987, only 2% of patients infected with has issued a clear call to action to halt the spread of antibiotic S. aureus failed to respond to methicillin, an inexpensive resistance, adopting Combating Antimicrobial Resistance as antibiotic that had been used effectively against these the theme for World Health Day 2011. infections since the 1960s. By 2004, more than 50% of patients with S. aureus failed to respond to methicillin. According to Rachel Nugent, chair of the expert working group formed by the Center for Global Development (CGD) The onset of antibacterial resistance is causing an to prepare the report, The Race Against Drug Resistance, “drug enormous burden; increasing global health care cost by resistance is a natural occurrence, but careless practices in as much as $100B annually. A recent U.S. Senate report drug supply and use are hastening it unnecessarily.” In June indicated that antibiotic resistance costs more than $40B 2010, Nugent stated that “we can no longer afford to be in the U.S. alone. Separate studies have estimated direct indifferent to the spread of drug-resistant diseases. For the costs of increased hospital stay due to resistant S. aureus sake of all people who seek effective health care, now and in infection in the E.U. and the U.S. at $14B. the future, drug resistance must be addressed urgently and aggressively as a global health priority.” Over-prescription of antibiotics is widely accepted as a primary cause of resistance and there is a clear relationship, as shown in graph 1, between antibiotic usage and resistance in the community level. Emerging evidence shows that even individual antibiotics prescribed in primary care can contribute to antibacterial resistance on an individual basis for up to 12 months following treatment.38 While documented evidence is limited, many global health experts anticipate that the burden of antibiotic resistance in the developing world will be particularly severe, especially in areas where access to secondary, non-resistant medication is unavailable. 33 34 35 36 37 38 27 The Race against Drug Resistance, A report of the center for Global Development’s Drug Resistance Working Group. 111TH CONGRESS, 1ST SESSION H. R. 2400. To amend the Public Health Service Act to enhance efforts to address antimicrobial resistance. Effect of antibiotic prescribing in primary care on antimicrobial resistance in individual patients: systematic review and meta-analysis, BMJ 2010;340:c2096doi:10.1136/bmj.c2096. Extending the cure: policy responses to the growing threat of antibiotic resistance / by Ramanan Laxminarayan and Anup Malani; with David Howard and David L. Smith. BVGH expert interviews. Antibiotics prescribed to an individual in primary care were consistently found to be associated with resistance of urinary and respiratory bacteria to those antibiotics in that individual antibiotics prescribed in primary care may impact on bacterial resistance in a patient for up to 12 months. The greater the number or duration of antibiotic courses prescribed in the previous 12 months, the greater the likelihood that resistant bacteria would be isolated from that patient. BIO Ventures for Global Health The problem of antibiotic resistance requires a multi- Cost Effectiveness faceted, multi-stakeholder solution. While discussing Analysis suggests that the fever panel would be cost the potential for a multiplex POC diagnostic for fever, effective in the developing world in comparison to expert interviewees acknowledged that while overuse commonly used standards for cost effectiveness. As shown of antibiotics is extremely difficult to model and the in the table below, assuming a per unit diagnostic test cost implications are not entirely understood, delayed of between $2 - 5, excluding any cost of the base unit, the development of resistance is clearly an added benefit cost effectiveness would especially be high in sub-Saharan of reduced antibiotic usage. The proposed incentive Africa and India, and aligned with the commonly used program aims to contribute to this solution through the cut-off point for cost effectiveness (as used by the World development and roll-out of better diagnostics to address Bank) of $150 per life-year saved.39 inappropriate use of antibiotics. Figure 9: Cost-Effectiveness of POC Diagnostic for Pneumonia 40 39 40 41 28 Region SubSaharan Africa India China Latin America North America, Europe Rest of World Costeffectiveness ($ per life-year saved)41 $106-$271 $89-$228 $181-$471 $368-$973 $30,000$77,000 $834-$2,134 The World Development Report for 1993 (World Bank, 1993), which reviewed many public health interventions, suggests that interventions costing less than $150 per DALY saved are highly cost-effective. The cost-effectiveness calculation should be seen as preliminary. It takes into account the volume and costs of the diagnostic, the volume and costs of drugs prescribed/saved, and the estimated number of lives saved. It does not yet include estimates on other cost categories, such as the time and costs of health care providers or the differences in cost of care at different levels and/ different disease stages. In addition, the cost-effectiveness is calculated on life-year (LY) saved, a measure that does not include the morbidity component in the DALYs (making it more conservative than an estimate incorporating DALYs). Interestingly, the cost effectiveness of a POC diagnostic for pneumonia varies dramatically by region. The differences in cost-effectiveness are influenced in the differences in absolute mortality of bacterial pneumonia between the regions. For example, in North America and Europe there is a lower mortality burden associated with bacterial pneumonia so the absolute number of lives saved are fewer, which impacts the cost-effectiveness of the fever panel in these regions. Another obvious consideration for cost-effectiveness is the cost of the diagnostic. The cost-effectiveness of this intervention is directly correlated to the final cost of the diagnostic. A doubling of the cost of the diagnostic would roughly halve the cost-effectiveness, and vice versa. Preliminary analysis shows that sensitivity and specificity of the target diagnostic will have a significant impact on the cost per life year saved. For example in Sub-Saharan Africa, cost effectiveness nearly doubles where sensitivity and specificity change from 70% - 70% to 95% - 95% respectively. BIO Ventures for Global Health 7 Guiding Principles for Incentive Design 7. Guiding Principles for Incentive Design There are numerous barriers that must be addressed in order to enable access to needed POC diagnostics for patients in the developing world. Our proposed Global Health Innovation Quotient Prize (IQ Prize) addresses key barriers that today limit investment in R&D for these products — in particular, the lack of a commercial market, lack of funds for R&D, limited knowledge of required test characteristics, and limited access to clinical samples and trial sites that limit effective product development and performance evaluation of developing world diagnostic tests. The focus of the proposed IQ Prize is illustrated in Figure 10 below. Figure 10: Focus of Proposed Incentive Program by Product Development Stage Pay-for-Success “Pull” Incentives The majority of funding for global health diagnostics development has taken the form of “push” funding: upfront research grants and contracts from donors- such as the Bill & Melinda Gates Foundation, Grand Challenges Canada, Rockefeller Foundation, Wellcome Trust and other foundations, governments, and private donors- most often directed through product development partnerships (PDPs) to selected development firms. There are notable exceptions, such as the ongoing Grand Challenges that seek to engage industry directly. 30 BIO Ventures for Global Health While many of these efforts have successfully reduced the In designing an incentive that would be attractive to smaller burden caused by neglected diseases, other approaches are diagnostic companies, we considered the ways in which needed. The absence of substantial pull incentives that reward these companies are financed—primarily by raising equity companies for creating global health products has left many capital via the sale of stock, and by licensing product rights to small- to medium-sized innovators on the sidelines. Push large companies to secure interim compensation and share funding, even if it covers 100% of the cost of a global health risk during the product development process. Our analysis project, isn’t necessarily sufficient to drive companies to shift suggests that an appropriately sized milestone-based prize limited resources to global health R&D. In addition to direct that would reward success at notable inflection points in costs, there is an opportunity cost associated with diverting diagnostic development would meet the needs of both time and resources away from profitable developed world funders and diagnostic innovators. The benefits of milestone- projects towards global health R&D. For innovative companies based structures include: to put global health on a par with their priority developedworld research programs, this opportunity cost must be overcome through market-based incentives that are in line with reasonable commercial returns. • Industry familiarity with the approach, based on a long history of clearly definable end points that can trigger payments, especially in partnership relationships; • Smaller up-front investments by innovators, which are more likely to be within the financial capacity of Further, push funding requires donors to ‘pick winners’ and place bets in advance of results. Such a structure does smaller diagnostic companies and lowers their risk; • The potential to attract a larger cross-section of not necessarily reward success, as funding is most often organizations, including not only large diagnostic provided in advance, in anticipation of work completed. companies but also start-ups, small or medium-sized This carries with it a risk that the program may not yield venture-backed companies, and innovative emerging the desired results. By contrast, “pull” incentives of the kind proposed here do not require donors to “pick winners” in market diagnostic developers; and • Improved monitoring and evaluation of progress advance, instead creating a competitive structure in which toward targeted interim goals, as opposed to incentive donors pay for successful product development. structures where only the end result is compensated. Milestone-Based Incentives Summary of IQ Prize Existing pull mechanisms typically provide funding after More than 80 interviews with stakeholders confirmed our a drug or vaccine has received regulatory approval and is initial hypothesis: a milestone-based, pay-for-success prize ready for market launch (e.g., Advance Market Commitment; would help motivate diagnostic developers/innovators, Priority Review Voucher, X Prize). Often, large companies particularly small- to medium-size companies. This would have the revenue and typically profitability, lower cost of also provide a results-oriented structure which has the capital, and staying power to make multi-year investments potential for traction with potential donors and represents without interim compensation. Yet small, pre-profit diagnostic an alternate (and complementary) approach to current companies, which are most often the source of innovation push-based funding. in the field, cannot afford to make such long-term bets, even if the ultimate reward were to be substantial.42 To address the financial timelines and constraints of such diagnostic developers, a nearer-term incentive is required. 42 31 BVGH interviews and research. BIO Ventures for Global Health Figure 11: Milestone-Based Prize Concept The IQ Prize would provide for the following: • A TPP, confirmed through a consensus-based process by a group of independent experts, as the standard for achievement sought; • An open competition among diagnostic developers having the capability to achieve all or part of the TPP and who are willing to participate and agree to the rules of the competition; • A milestone structure rewarding successful completion of key inflection points in the development of a novel POC diagnostics meeting the TPP requirements and providing adequate commercial incentive to motivate industry participation; • Payment only for milestones achieved during the competition, i.e., no payment for prior results, although a competitor could enter midstream if earlier milestones have been satisfied. • A fixed, maximum number of awards at each level; • Objective determination by the same or another expert working group as to whether each milestone is achieved, with donor representation if desired 32 BIO Ventures for Global Health IQ Prize Design Principles Our proposed prize structure, therefore, is based on the following principles. Figure 12: IQ Prize Design Principles IQ Prize Design Principles 33 Prize should be a “pull” mechanism that rewards results “Pull”-based financial incentives reward results rather than funding inputs. Advantages include allowing donors to pay only for success, to solicit and access the broadest pool of technical knowledge and expertise, and to reap the benefits of market competition. Successful achievement of interim milestones should be rewarded for work completed during the competition Milestone-based rewards for performance divide product development into successive parts, set at industry-recognized inflection points. Advantages include: the ability to craft milestones tailored towards donor goals, to more accurately determine the appropriate milestone size relative to the task, and to engage a diverse range of participants by providing interim payments. Transparency and objectivity must be maintained Credibility of the incentive, both in terms of sponsorship and criteria for selection of awardees, is critical. Tying milestones to specific, objective criteria for each milestone, pre-identifying the number and amount of each award, and creating and consulting with a carefully selected independent group of experts at every level will ensure transparency and objectivity of the prize program and enhance the credibility of the program in the eyes of industry. Milestone award amounts should be set to motivate serious engagement on the part of industry Milestone awards must cover at least the cost of product development incurred for achievement of that milestone and provide an additional premium to compensate for risk, opportunity cost, and cost of capital. The premium provided should be greatest where the greatest risk is incurred. Milestone structure should pursue the final product Multiple awards will be provided for each milestone. The number of awards issued at each level is pre-determined based on typical attrition rates from one stage to the next, and with the aim of commercializing more than one successful product. Likewise, a bonus premium can be applied for those developers who satisfy not just the minimal but the optimal TPP, to incentivize these beneficial improvements. Milestone structure should fairly balance intellectual property considerations Developers will retain ownership and control of their pre-existing and newly developed intellectual property. Donor investment must be protected, however, if the developer is unable or unwilling to proceed in the competition or to supply an approved product. In these cases, technology transfer provisions would be established through intellectual property licenses to donors or their designees. These licenses could be limited both geographically to the developing world and to the specific field of use for neglected tropical diseases. A successful program should promote widespread access in endemic countries, without which innovation would not reach those in need Access and distribution of the final product(s) must also be assured through an access plan addressing issues such as affordability, supply, and distribution. Prize design and access plans should be structured to maintain affordability, ensure adequate supply, and support in-country manufacture and distribution. BIO Ventures for Global Health 8 IQ Prize Design and Structure 8. IQ Prize Design and Structure a. Criteria of Each Milestone BVGH’s Global Health Innovation Quotient Prize (IQ Prize) is designed to lead biotech developers toward developing a critically needed POC fever diagnostic. More than 80 stakeholders contributed to the design. The IQ Prize uses interim rewards for reaching key milestones along the product development process, the achievement of which are tied to specific, objective metrics for each milestone level. Each milestone in turn will advance innovation towards the final TPP. Selection of awardees at each milestone will be determined by an independent expert advisory group (EAG). The EAG will be comprised of recognized scientific, medical, commercial, and global health experts, selected by the donor(s). Membership of the EAG will be adjusted as appropriate to reflect the different technologies used at each milestone. This milestone structure reflects key inflection points in diagnostic test development and the requirements of the TPP outlined in Section 4. The milestones to be rewarded and initial perspectives on the criteria for successful achievement are laid out in Figure 13. Four clearly defined milestones were developed in pursuit of reaching the TPP – 1) proof of concept, 2) prototype creation and clinical evaluation, 3) clinical validation in the field, and 4) regulatory approval. The milestones are intended to describe the performance standards a developer must meet in order to receive a milestone payment. These milestones are intended to reflect the product development process for diagnostics, but have been grouped together so as to reward steps where performance can clearly be evaluated. These milestones have been vetted with a wide range of stakeholders as well as a panel of diagnostic company executives. 35 BIO Ventures for Global Health Figure 13: Milestones and Descriptions Milestone Description Proof of Concept of Platform Technology: Individual Pathogen Tests (Milestone #1) • Demonstration that the platform technology can be used to detect each of the five pathogens43 identified in the TPP as well as a single or multiple (signature) known pan-bacterial biomarker(s)44 in a small number of relevant clinical samples equaling or improving upon the sensitivity and specificity requirements defined in the TPP. Prototype Build and Initial Clinical Performance Evaluation: Fever Panel (Milestone #2) • • • • • Demonstration that, when an optimized alpha prototype device is used to diagnose the cause of fever in clinical samples45, the device meets or improves upon the sensitivity and specificity requirements defined in the TPP. Note that the number of clinical samples to give 90% powered statistics will be determined pending the input of a biostatistician. Demonstration of inter- and intra-laboratory reproducibility across a minimum of two laboratory sites as defined in the TPP. Demonstration that device and relevant assay materials meet or improve upon accelerated stability testing criteria determined to be representative of the minimum stability criteria46 defined in the TPP. Demonstration that the device meets or improves upon the minimum time to result criteria as defined in the TPP. Determination of bill of materials as checkpoint to ensure that cost is consistent with final test meeting target price guidelines. Clinical Validation in the Field (Milestone #3) • • Demonstration that, when the beta device is used to diagnose the cause of fever in patients in the field, the device meets or improves upon the sensitivity and specificity requirements defined in the TPP at multiple independent field sites when operated by local health care staff. Note that the number of clinical samples to give 90% powered statistics and that the number of independent field sites required will be determined pending the input of a biostatistician.47 Demonstration that all other specifications of at least the minimal TPP are met or exceeded. Regulatory Approval (Milestone #4) • Primary approval through the EU CE mark48 Milestone 1: To receive milestone payment 1, the developer must complete basic proof of concept tests of infected with Streptococcus pneumoniae, Staphylococcus its technology. The ability of the technology to diagnose, aureus, or Haemophilus influenzae B. Proof of concept at at a minimum, the relevant pathogens specified in the this stage of development is defined as correct detection TPP using existing biomarkers will be the key criteria for of positive and negative clinical samples for each evaluation. Access to clinical samples will be facilitated: pathogen, while meeting or exceeding TPP sensitivity and presently contemplated to be blood from patients infected specificity qualifications. 43 44 45 46 47 48 36 with P. falciparum or P. vivax, and sputum from patients Five pathogens: P. falciparum, P. vivax, Streptococcus pneumoniae, Staphylococcus aureus, Haemophilus influenzae B Such as procalcitonin Evaluation to be performed by contracted laboratory services that will ensure consistent and objective evaluation across incentive participants. As many fully validated clinical samples as possible will be used; however, additional clinical samples that require further testing with reference tests may be needed. The stability criteria defined in the TPP are designed to mimic the extreme storage and operation temperatures of the developing world where the devices will be used. The device and associated reagents should have shelf lives that meet or exceed these criteria. As actual shelf life evaluation will depend on final packaging and other local conditions, these TPP criteria will be evaluated using accelerated stability testing whereby the device and associated materials or reagents will be evaluated for performance both before and after storage at the temperature and humidity specified in the TPP. In order to validate performance against current gold standard tests, portions of clinical samples will be transported to centralized laboratory facilities for validation by gold standard reference assays. Unlike the approval of drugs, where the International Conference on Harmonization (ICH) has clearly defined certain organizations a “stringent regulatory authorities” (including the U.S. FDA; the Japanese Ministry of Health, Labor, and Welfare; the European Agency for the Evaluation of Medicinal Products/EMEA centralized procedure; the European Free Trade Area - represented by the Swiss Medic; and the Canadian drug regulatory authority, the Therapeutic Products Directorate, Health Canada) no such definition of “stringent regulatory authorities” for the evaluation of diagnostics has been developed nor is the definition necessarily directly equivalent to that established for the evaluation of drugs. Therefore, milestone 4 will require primary approval by the EU CE mark program as the minimum standard for achievement of this milestone as a proxy. This milestone may need to be adjusted in the future as the diagnostic community moves towards harmonization of regulatory processes as has been done for therapeutics. BIO Ventures for Global Health Milestone 2: Between Milestones 1 and 2, the respective achievement of Milestone 3 is defined as correct pathogen developers will need to build and optimize alpha prototype detection in patient samples as determined by comparison devices to prove the “fever panel” test concept. Optimization to results obtained with gold standard reference tests and will likely take several rounds of device modification and meeting or exceeding all the requirements of the minimal TPP. validation on a relatively small number of clinical samples. Lack of interference in the identification of all pathogens on Milestone 4: To satisfy the fourth and final milestone, the panel must be demonstrated if different sample types developers will need to obtain approval through the are to be analyzed simultaneously. When the developer European Union CE mark process. As the laboratory and decides optimization is complete, devices will need to field clinical validations described in Milestones 2 and be submitted by the developer to a contract research 3 will be designed to meet the majority of regulatory organization (CRO) or other laboratory contracted by the requirements, the burden on the developer for this step prize administrators for independent evaluation, paid for by should primarily be on completion of paperwork. Any the developer. Successful achievement of this milestone is country-specific additional evaluations that may be defined as meeting or exceeding key requirements defined required will be addressed separately by the developer, but in the TPP, including: test sensitivity, specificity, inter-site will not be the subject of a milestone payment. reproducibility, time to result, and duration of valid result. The results of the independent evaluation will be used as the criteria for the milestone reward. Core Package of Product Development Interventions There is a core package of product development The criteria for this milestone have been designed to interventions that are required to facilitate product minimize failure in subsequent milestone steps. At this development efforts by participating innovators and point in development, a tally should be taken of the costs to support the effective evaluation of these efforts at of test materials to confirm that they are consistent with each milestone. These interventions are directly linked the production of a final diagnostic test that is affordable to product development and milestone evaluations and to the developing world and consistent with the target would be funded within the scope of the incentive. price per the TPP. Interventions are needed to facilitate evaluation of Milestone 3: Devices that achieve Milestone 2 will then innovator development at each of the milestones. be further developed and submitted for performance Materials, contracted laboratory facilities, and/or clinical evaluation in the field by local health care staff. Aliquots field tests will be required to allow for accurate comparison of each patient’s sample will be analyzed using gold of devices at each of the first three milestones. Although standard reference tests for each of the pathogens on analysis of regulatory processes for diagnostics has been the panel and for the pan-bacterial biomarkers. This undertaken as part of the prize development process, represents the second component of clinical validation. additional country-specific information must be gathered While the TPP criteria are designed to minimize failure in during Milestone 4 to ensure each device meets the the field by outlining strict criteria at Milestone 2, devices regulatory requirements for each country targeted for that are too complex, difficult to transport, unstable, or distribution. As noted above, these are core interventions difficult to maintain are all likely to fail at this stage. As the that will be funded and administered within the scope of developer will also pay for these clinical validations, it will the incentive program. be in the developers’ best interest to ensure all minimum TPP requirements are met before submission. Successful 37 BIO Ventures for Global Health Figure 14: Core Product Development Interventions to Facilitate Milestone Evaluations Activity Description Milestone 2: Contract CRO for independent evaluation As part of Milestone 2, initial clinical validation of the prototype devices will be performed using fee-for-service evaluation through a contract research organization (CRO) or academic research groups as appropriate, paid for by the developer. An appropriate CRO (or other group) will need to be selected and relevant, standardized evaluation and reporting protocols established. Milestone 2: Access to validated clinical samples In order to minimize the cost of evaluation in Milestone 2, validated clinical samples are required. New samples can be obtained and evaluated by gold standard techniques at the CRO, or donations or access to validated clinical samples can be obtained through organizations with sample banks, such as WHO/TDR or CDC. Milestone 3: Establish sites for field evaluation Performance of diagnostics can vary geographically due to differences in climate, local variations in infectious organisms, differences in level of training of operators, etc. In order to fairly compare devices to the TPP performance, field evaluation of tests will be performed using fee-for-service contractors (paid for by the developer). To facilitate this, multiple relevant field sites capable of conducting evaluation of the devices must be identified and engaged through either contracted services or collaborations. Milestone 4: Survey of relevant governments to establish regulatory requirements In Milestone 4, regulatory approval must be obtained for the POC diagnostic test in the form of the EU CE mark. In preparation for this, government officials from low resource countries likely to use the new test must be consulted to determine what might be required of the developer beyond CE Mark approval for use in their country. b. Number of Awards A critical element in the IQ Prize design is determining the number of awards to be made at each milestone. From the innovator’s perspective, increasing the number of awards helps reduce risk in competing for the incentive, as it will increase the odds that they will be selected as a recipient. From the donor’s perspective, and in the case of milestonebased prizes, awarding a larger number of innovators also increases the pool of innovation that can be promoted to the next stage of the competition. However, the tradeoff is that the overall prize becomes more expensive to fund. We propose that the number of awards at each milestone be informed by expected attrition rates associated with advancing to the next product development milestone. We the final TPP. We believe that having multiple successful end-products will help promote market competition that will drive prices down, allow for alternate supply sources, and support the dual objectives of affordability and access to the final POC diagnostic. Our initial assumptions presented here are based on the input from a panel of 12 industry executives representing 10 diagnostic companies, ranging from small, privately held venture-backed companies innovating a single technology to large, publicly traded multinational diagnostic companies employing a variety of technologies with a portfolio of products. The likelihood of technical success at each milestone and the proposed number of milestone awards are presented in the table below. have used initial estimates of likely attrition gathered from industry executives to determine the number of awards proposed here, keeping in mind our ultimate aim of the IQ Prize to support two new diagnostic products that meet 38 BIO Ventures for Global Health Figure 15: Number of Awards Milestone 1: Proof of Concept (Technology) Milestone 2: Prototype Build / Initial Clinical Performance Evaluation Milestone 3: Clinical Validation in the Field Milestone 4: Regulatory Approval Estimated Attrition Rate49 20% 80% 25% Nominal Required Participants Based on Attrition Rate 19 15 3 2 Target Number of Milestone Awards 15 3 2 2 c. Size of the Milestone Payment milestone (Milestone 3). We have assumed that of the A key challenge in establishing pull incentives is two products developed through this incentive program, determining the appropriate size of the prize. The specific one will meet the minimal TPP and the other will achieve balance is in setting the prize high enough to attract the optimal TPP (and therefore receive a higher award innovators, but not so high as to overpay for an innovation. payment at Milestone 3). After initial consultation about the proposed TPP and milestones with a panel of industry experts, we believe Such a milestone award structure, which compensates for that milestone awards must reflect both costs and amount costs incurred by the developer and rewards a premium of risk incurred by the developer at that particular stage where significant risk is incurred, works well in the area of development. In other words, where milestones are of POC diagnostics for differential diagnosis of fever. associated with limited risk to the innovator, milestone Our research indicates that the proposed TPP for fever awards should roughly reimburse the costs incurred by diagnosis fulfills an unmet need in developing countries, the developer during the particular phase of development and that there is real market potential for such a product in question, as approximated using industry standard in the developing world. However, difficulty accessing estimates. Where achievement of milestones requires patient samples, lack of familiarity with navigating significant innovation and carries significant technical risk, developing world distribution channels, and uncertainty a risk premium will be applied to milestone awards. about consumer ability to pay for the test have prevented significant industry engagement to date. Our consultations Another important issue is that of motivating developers indicate that the proposed milestone-based incentive, to strive for achievement of the optimal TPP through combined with the potential for a sustainable market, the size of the milestone payments. We propose that an would motivate real investment on the part of innovative additional premium be paid to developers successfully diagnostic developers. achieving the optimal TPP at the Clinical Validation 49 39 Expected attrition rates are based on aggregating the results of an Industry Working Group meeting of 13 diagnostic company executives held in Cambridge, MA on December 17, 2010. BIO Ventures for Global Health Using estimates gathered primarily from a panel of industry experts and the assumptions outlined in Figure 15, we have approximated the cost, time, and likely attrition rate associated with achieving each milestone. Based on these estimates, we have proposed an award size, including a risk premium where appropriate, at each milestone. The payments that would be awarded to a successful developer at each milestone are outlined in the figure below: Figure 16: Size of Milestone Payment Awarded to a Successful Developer Additional secondary benefits to the developer from participation in the program include: • Non-dilutive funding for product development: Successful developers will access non-dilutive funding for product development. • Benefits to other commercial programs: Successful developers will be able to fund R&D efforts through this program that could have significant benefits outside the particular product application proposed here. • Leveraging possible developed world commercial opportunity: A test that could differentiate broadly • Achieving proof of platform: Early stage companies may achieve proof of platform through participating in this incentive program, making them more attractive to venture investors. • Learning how to operate in key emerging markets: The test that is the focus of the incentive program is one that has high potential for key emerging growth markets such as India and China. • Positive publicity: Successfully developing a multiplex fever panel that achieves the proposed TPP would garner significant positive attention. between viral and bacterial infection may have commercial potential in the developed world as well. 40 BIO Ventures for Global Health Assumptions around milestones, number of awards, and size of the award payments lead us to believe that the IQ Prize will take approximately 8 years and cost approximately $150M to yield two new POC diagnostic tests for fever that meet the requirements outlined in the TPP. These estimates are outlined in Figure 17 below, which identifies the probability of technical success (PTS), likely timing and cost associated with each proposed milestone, along with the proposed milestone award level and number of milestone awards at each milestone: Figure 17: Snapshot of Proposed Incentive Program * Probability of Technical Success d. Selection of Awardees incentive. As described above, milestone awards will be As noted, the IQ Prize utilizes interim rewards for reaching confirmed by an independent expert advisory group key milestones along the product development process, comprised of recognized scientific, medical, and global the achievement of which are tied to specific, objective health experts selected by the donor. This group will metrics for each milestone level. Milestone awards will determine whether or not a potential awardee has met be determined based on a “race to finish” approach the minimum technical requirements specified at each that grants awards to the first contestant(s) to meet the milestone. minimum requirements set by the administrators of the 41 BIO Ventures for Global Health This approach carries two significant benefits. First, it e. Eligibility Criteria encourages faster innovation to meet the technological The IQ Prize is designed to encourage the participation of challenge of each milestone. This premium placed on a wide range of innovators and technological approaches. speed is particularly ideal in situations such as this one, However, we propose that a basic set of eligibility criteria where technological innovation is desperately needed, be used to screen participating diagnostic innovators. and time saved can be translated into a real-world benefit In order to ensure that we do not unduly limit the in terms of lives saved. Second, the race-to-finish model competition through these requirements, we propose that provides a transparent set of rules for developers. The the bar for qualification be set relatively low, requiring only concept of “race to finish” is straightforward and easily that developers demonstrate a reasonable chance of being understood by developers. This is particularly important in competitive. centralized incentive models, such as a milestone-based Proposed eligibility requirements include: pull prize, since the administrators and donors must be • Demonstrated expertise in diagnostic research, trusted and the rules must be understood in order to development, or commercialization, as represented encourage participation by developers. by either company history or senior management experience; and However, this strategy does carry a particular drawback. • Sufficient resources to engage in the prize Specifically, while there is a time-saved benefit to this model, competition, either directly or through identified it means that the first developers meeting the minimal TPP contractor/subcontractor/partner relationships, as requirements will be awarded, even if others that cross the measured by: finish line later have potentially better products. In order to • Funds adequate to reach the first level mitigate this risk, we have proposed that the technological milestone, with a stated plan to fund hurdles outlined in the minimal TPP are sufficiently high subsequent levels (which could include receipt to ensure quality end-products that will meet user and of incentive payment); purchase needs, and we have also provided for two final awards as well as the optimal profile opportunity. • A facility or facilities logically capable of housing that work, licensed or certified as needed to conduct relevant work; and • Staff with adequate background and experience to demonstrate capability of completing the incentive program work. Our belief is that the eligibility process will help donors monitor the progress of the incentive in terms such as number of competitors, quality of developers, types of technology being developed, and progress that the developers are making. This type of information may be invaluable to predicting administrative costs and ensuring that the end-goals of each milestone are met. 42 BIO Ventures for Global Health f. Intellectual Property Considerations in seeking some value for their investment, and to facilitate Access to intellectual property (IP), including know-how, is continued innovation, if the participant receives a certain potentially a more complex discussion for diagnostics than for level of funding from IQ Prize. Companies and their investors therapeutics. In the case of therapeutics, the most important will certainly resist, however, any approach to IP which single piece of IP is often the composition of matter patent jeopardizes their core IP or technology. on the active pharmaceutical ingredient used in a treatment. Occasionally, manufacturing process or method of use Our program would therefore provide that each developer patents can be important in an IP portfolio for a therapeutic. will continue to own all IP generated through the prize In contrast, for diagnostics there are often multiple patents program, subject to the following conditions: supporting sample acquisition, sample processing, assay configuration and chemistry, and manufacturing, as well • If the company receives payment for one or more of as materials, reagents, software, and instrument design. Milestones 2 through 4, and after a reasonable period Moreover, some of the most important intellectual property of time50 is either unable or unwilling to continue is not the patents themselves but know-how, such as in the competition, the sponsor can, within a stated manufacturing expertise. The know-how to make a high period of time and at the sponsor’s option, require the quality product at the lowest possible cost is often the most company to provide a non-exclusive license, with right important component of a diagnostic company’s IP portfolio, of sub-license, to the IP generated in the competition and can be subject to trade-secret protections. and any pre-existing company IP necessary in order to practice the newly generated IP, in order to make, In order to retain the desired motivation of developers, the use, or sell the subject product. That license would be IQ Prize is designed so that the developers retain all rights limited by territory and field-of-use consistent with to their pre-existing and newly developed IP. However, the parameters and objectives of the competition, and sponsor interests would be protected if a developer would be subject in turn to due diligence and quality receives significant milestone payment(s) and withdraws requirements by the licensee and any sub-licensee. from further competition; or is unable to follow through on supply if their product is one of the final products chosen. • We suggest that receipt of payment for Milestone 1 alone Technology transfer of a product to another company for would not trigger the license requirement described ongoing development or manufacture is a complicated above, for two reasons: the IP generated at that point endeavor full of delays and outright failures. Thus the prize would not likely be highly useful to others, given the design is based on incentivizing the ongoing involvement relatively low probability of technical failure to reach of the developer. that milestone; and the sponsor funding at that point is not significant enough to risk deterring company It stands to reason that requiring a company to transfer its participation. Only after the much higher technical know-how and manufacturing expertise to a third party in standard of Milestone 2 is reached (and a more significant the developing world will be met with resistance by many amount paid) would the license requirement apply. potential program participants. However, under certain circumstances, donors who pay for the prize have good • A company would not be subject to the license reason to insist on access to intellectual property that is provisions above if it continued in good faith in developed through incentive funding. Sponsors are justified the competition despite not having received an 50 43 “Reasonable period of time” is to be determined by the sponsor for each milestone, with industry input. BIO Ventures for Global Health intervening milestone. For example, a company or to out-license manufacturing immediately after receives payment for Milestones 1 and 2, does not administration of the award. These plans would be held receive Milestone 3 because of the limited number of confidential by the sponsor. To the extent possible, payments, but continues to compete for Milestone 4. sponsors should assist in developing pre-negotiated purchase agreements with purchasing agents in • If a company goes through the competition and developing countries. The plan for manufacturing, or receives one of the final awards (Milestone 4), but is not out-licensing technology to one or more third parties for able or willing to provide ongoing supply at scale, the manufacturing, will be subject to review and validation company would also be required to provide the license by the sponsor or its delegate of the ability to produce described above, along with adequate technology/ at the scale projected. Requiring the submission of this know-how transfer to reasonably enable effective use of plan at Milestone 3 not only acts to verify the competitor’s the license by a third party manufacturer. The same due planning and good faith effort, but will give the sponsor diligence, quality, and expiration rules would protect the the ability to engage in the validation and review process company in this setting. prior to the final milestone payment, and thus prevent delay if that product is successful. The effect of the foregoing would be for the company to continue to own all IP generated: its own core IP, as well as IP generated in the competition. The sponsor receives assurance, however, that if the competitor exits following receipt of at least two milestone payments, the sponsor retains some benefit via the non-exclusive license. The sponsor is further protected by the license requirement if a company receives an award for an approved product but cannot or will not manufacture and supply the product. The company is protected by due diligence and quality requirements in the license arrangement, which itself would expire if the sponsor or sub-licensee does not progress the subject IP toward product approval or manufacture. Requiring a license only after receipt of Milestone 2 creates a floor for the requirement which will give comfort to companies without significantly compromising sponsor interests. For receipt of payment for Milestone 3, we recommend that awardees be required to either submit a good-faith (confidential) strategy to scale-up manufacturing and distribution of the POC diagnostic, including plans to obtain regulatory approval, maintain pricing consistent with the target product profile and product approval, and a willingness to negotiate and enter into purchase agreements or tenders with foreign Ministries of Health, 44 BIO Ventures for Global Health 9 IQ Prize Administration and Governance 9. IQ Prize Administration and Governance In this section we have outlined a potential administration To support the secretariat, we propose convening a and governance structure which is built around a program panel of industry experts familiar with all aspects of secretariat, likely imbedded within a host organization. the development and manufacture of POC diagnostics, The proposed secretariat will be responsible for managing including expertise in the developing world. Throughout the Global Health Innovation Quotient Prize (IQ Prize) on the course of the program, the EAG will meet to objectively behalf of donors, performing the following activities: determine whether a participating developer has satisfied milestone requirements and would therefore be eligible to • Directing the flow of funding from donors to developers; receive a milestone award. • Managing contractual relationships with developers; • Facilitating the work of the expert advisory group (EAG); and • Maintaining communication links amongst Figure 18 provides a more detailed summary of the proposed administration and governance structure as well as the roles and responsibilities of key stakeholders. stakeholders and with the general public. Figure 18: Overview of Program Governance 46 BIO Ventures for Global Health To ensure a lean architecture for the IQ Prize, with minimal overlap with existing institutions in the global health community, the secretariat should be embedded within an existing organization. The secretariat will require an estimated 2-3 full-time-equivalent (FTE) staff members to administer the program. Actual staffing will depend on the degree to which the secretariat functions are outsourced or provided by the organization managing it, which will depend on the competencies of the selected host organization. The core operational areas of the secretariat are outlined below: Operational Area Activities Governance and oversight • • • Strategic and general management support functions Performance measurement Financial management • • • Determining eligibility of innovators Establishing and managing the expert advisory group to evaluate successful achievement of milestones Payment processing • • Managing all communications with innovators and the public Transparent information sharing/management of online resources Administration Communications Final administration and governance structures will be designed with input from donors in order to determine voting rights and oversight procedures, create an objective and consistent milestone judging mechanism, and finalize the ongoing role of the program secretariat. 47 BIO Ventures for Global Health 10 Monitoring and Evaluation 10. Monitoring and Evaluation It will be critical for the Global Health Innovation Quotient Prize (IQ Prize) to have a comprehensive monitoring Key components of the M&E framework • A baseline study to determine the point of comparison and evaluation (M&E) framework to assess the progress for future M&E, including the development of achieved in attaining its goals and objectives. Please note counterfactuals.51 that the cost associated with M&E has been included in the overall overhead costs associated with the IQ Prize. • Annual monitoring of both the IQ Prize and the complementary activities required to support the public health goal of the prize.52 M&E of the IQ Prize and its impact will be essential to • A process evaluation about two years after the launch (1) demonstrate progress toward achieving the program of the IQ Prize to assess whether the mechanism is objectives, (2) inform any refinement of the prize working as expected and to obtain information on any design required, and (3) guide the use of supporting outstanding design issues. interventions. These M&E activities will be critical to • Outcome evaluations every 3 years.53 The outcome ensuring the effectiveness of the IQ Prize and must be evaluations will focus on assessing the extent completed as outlined below. of achievement of IQ Prize objectives, as well as addressing design issues, as required. They will The following M&E principles should apply to the IQ Prize: 52 53 49 outcome evaluation is expected approximately 3 • Routine monitoring and evaluation of whether the years after the launch of the program, provided that prize is efficient and effective in achieving its goals; sufficient developers have joined the program. It will • Integration, where possible, into existing tools 51 include an analysis of the counterfactuals. The first be up to the donor whether or not to attempt to and activities to obtain the necessary information, measure the impact of the IQ Prize on overall health minimizing the burden on endemic countries and in the developing world as part of these outcome existing investments in M&E; and evaluations. Linking the IQ Prize directly to reductions • Collation, analysis, and feedback of data collected in mortality, morbidity, and delayed antibiotic resistance and a clear strategy for feeding back information would be important and informative, but would require to stakeholders in endemic countries and the significant effort to collect data and appropriately international global health community. attribute results to the prize. Counterfactuals are a simulation of what would have happened without intervention, or if the intervention had taken a different (but specified) form. Assessing the difference between the situation under the existence of the milestone-based incentive program, and the counterfactuals contributes to the assessment of impact of the incentive. Monitoring is the process of collecting and analyzing information to track the efficiency of the project in achieving its goals, in order to provide regular feedback that helps to track costs and timeliness to compare what was planned to actual results. Evaluation is the systematic process of collecting and analyzing information to assess the effectiveness of the project in achieving its mission. Evaluation will provide regular feedback to help analyze the consequences, outcomes, and results of project team activities. BIO Ventures for Global Health M&E Structure Specific structures and dedicated resources are required to ensure satisfactory implementation of the M&E activities. It is proposed that the prize secretariat be responsible for monitoring, including: • Managing the monitoring activities, with accountability to the donor for these activities; • Managing the independent contractors required for the implementation of the baseline study; and • Producing annual reports, as identified in the requirements for annual monitoring. To ensure the independence, objectivity, and credibility of the outcome evaluations, it is proposed that an external body be responsible for evaluation, including: • Managing the evaluation activities, with accountability to the donor for these activities; • Conducting the outcome evaluations every 3 years, comparing the extent of achievement of the prize objectives relative to the baseline study/ counterfactual assessment. 50 BIO Ventures for Global Health 11 Financial Requirements Over Time 11. Financial Requirements Over Time Building on the assumptions outlined in Section 7 of this document, it is estimated that the total donor funding requirement for the Global Health Innovation Quotient Prize (IQ Prize) is approximately $150M (including $500K per year for administration and overhead costs as shown in Figure 19 below).54 To llustrate donor costs over the life of the project, we have assumed that milestone payments will be made in equal amounts at the end of each year across the duration of each milestone. For example, Milestone 1, which is anticipated to take a developer on average 1.7 years to complete and require a total of $58.5M in award payments, is shown with donor payments in years 2 and 3 of $29.3M. Figure 19: Summary of Total Donor Cost over the Project Timeline ($M) Milestone payments have been rounded to nearest $100k at each milestone. Individual milestone lengths rounded up to the next full year to calculate number of payment years per milestone. The illustration shown above represents the base case base case scenario discussed in this document provides for scenario based on average estimates of R&D cost, time, a high likelihood of achieving two successful diagnostic and risk received from a panel of industry experts. Donor developments using a range of technological approaches, funding levels are likely to dictate many of the final IQ Prize including innovative molecular platforms which carry characteristics including the number of awards given at added future benefit of addressing a potentially wider each milestone, the type of companies likely to participate, range of diseases. and the range of technology pursued by developers. The 54 52 Administration and overhead costs assume (1) the cost of two fully-loaded administrator FTE salaries of $150k and (2) general operating expenses incurred by the host organization of $200k per year. Limited additional costs associated with the expert working group and milestone evaluations have not been included. Further refinement of these figures will be required prior to project launch. BIO Ventures for Global Health 12 Impact Considerations 12. Impact Considerations a. Access Provisions We have organized the access proposal into four Access is an important part of the Global Health Innovation broad categories: Quotient Prize (IQ Prize), because having an impact on the • Appropriateness health of people in poor countries is the motivation for • Regulatory approval this project. Unlike the developed world markets, access is • Affordability often a hugely challenging aspect of delivering a medicine • Manufacturing, supply, and distribution or diagnostic tool where it is needed in the developing There are numerous potential approaches that could be world. taken to support the ultimate aim of ensuring access in the developing world. As the IQ Prize is focused on product development, rather than on access interventions, we have limited our proposal to those interventions that we believe to be most essential. These are outlined in the table below: Figure 20: Access Proposal Goal Access Proposal Appropriateness • The Target Product Profile was developed to specifically meet the health needs of developing countries and to meet the particular product requirements for use in low resource settings. Regulatory Approval • POC diagnostics must satisfy regulatory requirements before commercial use in a given country. The prize program requires approval by the EU CE Mark as the requirement for achieving Milestone 4. CE Mark is an appropriate regulatory standard that will enable registration in high-burden developing world countries. • Price has an inherent impact on access. Our TPP will have a target ex-works price target built in13, to ensure the ultimate uptake of the product. This price will be determined based on cost to produce, expected volume, country demand, priority, and other relevant factors. Affordability • The IQ Prize has the end goal of commercializing two products that meet at least the minimal TPP. This will ensure post-prize competition that is expected to drive prices down even further (and may be preferred in order to address regional or country differences in manufacturing requirements and capabilities). Further, by incentivizing the development of multiple products, donors can help protect against unanticipated obstacles, for example, in the event the developer discontinues work, shifts their market focus, or decides to sell their technology to a third party who cancels the project. • We should not overlook the possibility of third party subsidies as a method of reducing price to public purchasers in the developing world, but these approaches would need to be considered outside the scope of the proposed prize program. Manufacturing, Supply and Distribution 54 • Developers are encouraged to meet developing world demand and will be required to submit a plan for manufacturing and distribution to do so. Donors will also take an active role in facilitating market access. A developer unable or unwilling to supply a relevant market will provide an enabling out license of its IP to a third party supplier, to allow the market to be served. There may be additional requirements on the developer to ensure that the product is distributed in developing countries. For example, donors may require developers to agree to supply a specified, mutually agreed volume of the product, based on forecast of effective demand , either through direct manufacture and distribution of the diagnostic, or through licensing the technology to a third-party manufacturer. This and other potential approaches would need to be carefully developed and vetted with industry in advance of the launch of the IQ Prize. BIO Ventures for Global Health b. Supporting Interventions The IQ Prize focuses on accelerating product development Secondary Package of Supporting Interventions efforts for the proposed POC diagnostic test for fever. In Supporting interventions that do not directly impact the addition to awarding milestone payments to successful milestones outlined in the IQ Prize but are essential to diagnostic developers that successfully achieve each of the developing a sustainable platform include: identified product development milestones, it is important to recognize that there are a variety of other important factors that contribute to effective case management and 1. Measuring demand for a multiplex fever diagnostic and ensuring sufficient supply for the developing world; 2. Promoting adoption by developing country rational treatment use in endemic countries. These factors governments and multilateral organizations who include patient treatment-seeking behavior, product manage health care systems, especially in low availability, the national regulatory environment, provider resource settings; and knowledge, local distribution capacity and supply-chain 3. Encouraging continued innovation to incorporate efficiency, patient demand and education, and product optimal parameters and integration of additional efficacy. biomarkers in subsequent product developments. A secondary package of supporting interventions has been developed based on a broader assessment of supply- As noted above, these would be funded and administered chain challenges. These interventions will help companies: outside the scope of the IQ Prize. • Effectively measure and meet demand for the diagnostic test • Promote country-level adoption • Encourage continued product innovation This secondary package of supporting interventions could be supported by the prize donor if desired, or funded outside of the scope of the prize by other donors and/or organizations that are already focused on these types of activities. In summary, the broader package of supporting interventions has not been included in estimates of overall funding requirements of the IQ Prize, as they would be funded outside the scope of the prize 55 BIO Ventures for Global Health Measuring and Meeting Demand As devices progress through the IQ Prize, it will be necessary to begin preparing for scale-up and delivery of successful devices. Although the potential health impact and utility of the fever panel have been analyzed in the context of developing the IQ Prize, more information is needed to understand the demand for such a device and to design supporting interventions to meet this demand as outlined below. Figure 21: Supporting Interventions to Measure and Meet Demand Activity Description Demand forecasting In order to ensure that a product developed through the IQ Prize is produced in sufficient quantities to meet demand in the developing world, in-depth analysis and forecasting of the potential demand for a successful product must be conducted. This forecasting will: Inform potential volume and therefore manufacturing costs of a product; Inform developer participation choice by defining the market potential of the device in the developing world; and Guide the development of additional supporting interventions to optimize uptake in the developing world market. Purchasing agreements Develop purchasing agreements with multilateral organizations and national governments thus developing the market for the new POC diagnostic and driving cost of production down through increased volumes. Identify potential distributors and connect potential distributors with developers and purchasers. Distribution channels 56 Regulate economic operators of the diagnostic-distribution chain involved in distributing lowcost tests, including treatment prices and alignment of incentives to enable an appropriate price/margin structure, through mechanisms such as: Wholesaler volume rebates Suggested/recommended retail pricing Maximum suggested retail price BIO Ventures for Global Health Promoting Adoption and Utilization Beyond developing an environment to maximize availability of the fever panel, supporting interventions that will create an environment to foster uptake and utilization within developing countries and among multilateral organizations that guide global health policy are outlined below. Figure 22: Supporting Interventions to Promote Adoption and Utilization Activity Description National policy and WHO preparedness Work with WHO and national policy makers including Ministries of Health to integrate into IMCI guidelines or other national treatment guidelines. Public education and awareness (IEC) Build awareness of availability, efficacy, pricing, and rational use of fever panel diagnostic through media campaigns directed at patients and by packaging and labeling products appropriately. Provider training Train health professionals and other health workers to promote appropriate use of the diagnostic, including operation, maintenance, interpretation of results, and data reporting. Operational research Conduct additional field-based operational research to explore the full utility of the POC Dx in conjunction with current WHO IMCI guidelines for fever in different levels of health infrastructure across multiple countries and geographic regions. Data reporting An added value of the fever panel POC Dx is the ability to gain new epidemiological information on the origin of fever in a given area. Data reporting plans for public health purposes should be developed with Ministries of Health or other users/purchasers of the devices. Encouraging Continued Innovation Mechanisms to support and promote the development of biomarkers and diagnostics for active TB and HIV are ongoing independent of the IQ Prize. As best in class biomarkers emerge, they can be integrated into the fever panel, either during or after the prize program. However, improving upon pan-bacterial and developing pan-viral biomarkers to enhance the capabilities of the fever panel are not currently an area of focus. Therefore, to encourage innovation in this area an additional intervention may be needed as outlined below. Figure 23: Supporting Interventions to Encourage Continued Innovation 57 Activity Description New pan-bacterial and pan-viral biomarker discovery Create parallel incentives with other prize programs (e.g., InnoCentive) to stimulate new biomarker discovery for pan-bacterial or pan-viral detection and future integration into the POC diagnostic test for fever BIO Ventures for Global Health A Appendix A: Organizations and Individuals Consulted Appendix A: Organizations and Individuals Consulted Academics / Global Health Clinicians: David Mack, PhD, Alta Partners Brian D. Wright, PhD, University of California, Berkeley David Steinmiller, PhD, Claros Diagnostics David Brown, PhD, Independent Consultant Doug Dolginow, MD, Ignite Institute Doreen Ramogola-Masire, MD, Botswana-University of Pennsylvania Partnership Elizabeth Bailey, MPP, Commons Capital Elizabeth Molyneux, MD, World Child Cancer Jack B. Wilkins, MBA, GeneEx George W. Rutherford, MD, University of California, San Francisco James A. Geraghty, JD, Genzyme Corporation Gerald J. Kost, PhD, University of California, Davis John Clarkson, PhD, Atlas Genetics Ltd. Groesbeck Parham, MD, University of Alabama Medical Center Kara Palamountain, Northwestern University Julia Gage, PhD, National Cancer Institute Lynette Denny, MD, University of Capetown Madhukar Pai, PhD, McGill University Malcolm Molyneux, MD, Liverpool School of Tropical Medicine and Malawi-Liverpool-Wellcome T rust Clinical Research Programme. Geoff McKinley, PhD, Independent Consultant Jean-Francois de Lavison, MBA, Ahimsa Partners John A. Hurvitz, JD, Covington & Burling LLP John McDonough, T2 Biosystems Karen Hedine, Micronics Knut Seifert, Roche Diagnostics Krista Thompson, MBA, Becton Dickenson Leighton Read, MD, Alloy Ventures Chandrasekhar Nair, MCE, bigtec Labs Natarajan Sriram, Tulip Group Mark Schiffman, MD, MPH, National Cancer Institute Neil Butler, Independent Consultant Paul Yager, PhD, University of Washington Patrick Beattie, Diagnostics for All Paul A. Wilson, PhD, Columbia University Peter Chun, PhD, EASE-Medtrend Biotech Ltd. Philip Castle, PhD, MPH, National Cancer Institute Peter Dailey, PhD, Cepheid Rebecca Richards-Kortum, PhD, Rice University Robert Schueren, PhD, Agilent Technologies Rosanna Peeling, PhD, London School of Hygiene and Tropical Medicine Robert Wallis, ME, Pfizer Samuel Sia, PhD, Columbia University Shama Bhat, PhD, Bhat Biotech India Serigne Mbaye Diene, PhD, Academy for Educational Development (AED) Susan Bromley, PhD, Novartis AG Sarah Smiley, AdvaMed Talha Syed, JD, University of California, Berkeley Syd Daftary, Bharat Serums & Vaccines Ltd./ Advy Chemical Temina Madon, PhD, University of California, Berkeley Thomas Lowry, PhD, T2 Biosystems Industry Executives and Investment Community: Alex Rubido, PhD, Independent Consultant Anthony P. Lakavage, JD, Becton Dickinson Bala S. Manian, PhD, ReaMetrix Teva Rothwell, Independent Consultant Una Ryan, OBE, PhD, DSc, Diagnostics for All Wendy Woods, MBA, Boston Consulting Group William Rodriguez, MD, Daktari Blessed Okole, Technology Innovation Agency Candice Pillay, PhD, Technology Innovation Agency (South Africa) Chris Colwell, MPP, Becton Dickinson Daryl Pritchard, PhD, Biotechnology Industry Organization David Friedman, Ativa Medical 59 BIO Ventures for Global Health Non-Profit Organizations and Government Representatives Alan Magill, MD, Walter Reed Army Institute of Research Amy P. Wong, Clinton Health Access Initiative Bernhard Weigl, PhD, PATH David Wholley, MA, Foundation for National Institutes of Health Hellen Gelband, Resources for the Future Jane Rowley, Independent Consultant Kevin Kain, PhD, McLaughlin-Rotman Centre for Global Health, University of Toronto Mark Perkins, MD, The Foundation for Innovative New Diagnostics (FIND) Maurine Murtagh, JD, The Murtagh Group Patrick Lammie, PhD, U.S. Centers for Disease Control (CDC) Peter A. Singer, MD, McLaughlin-Rotman Centre for Global Health, University of Toronto Rachel Nugent, PhD, Center for Global Development Richard M. Thayer, MBA, The Catalysis Foundation and Halteres Associates Robert Hecht, PhD, Results for Development Institute Ruth Levine, PhD, .S. Agency for International Development (USAID) Tala de los Santos, MBA, PATH Ted Roumel, PhD, Independent Consultant Tido von Schoen-Angerer, MD, MSc, Médecins Sans Frontières (MSF) Travis Carley, CCS Trevor Peter, PhD, Clinton Health Access Initiative (CHAI) Francis Moussy, PhD, World Health Organization Special Programme for Research and Training in Tropical Diseases (WHO/TDR) 60 BIO Ventures for Global Health B Appendix B: Project Approach Appendix B: Project Approach This report is informed by more than 80 interviews in the fields not only of diagnostics, but therapeutics conducted with a broad range of stakeholders, including (drugs) and vaccines as well. The financial model we have the executive teams of diagnostic companies – both large commissioned for this proposal provides a framework and small and in both the developed world and emerging which should be readily adaptable to those tools, and with markets, global health experts working to support proper inputs, other disease states as well. Our hope is that development and introduction of new diagnostic tools, this structure resonates with funders and innovators across global health clinicians working in the field in low-resource all of these sectors in order to advance the prevention, developing country settings, academics, and venture diagnosis, and treatment of neglected diseases in the capital investors. A full list of individuals and organizations developing world. consulted can be found in Appendix A. The analyses performed to date have resulted in our Primary research was supported with reviews of relevant framing design principles for a prize structure to promote clinical, technical, and global health research literature as the development, launch, and distribution of a multiplex well as information provided on company websites. We panel for the differential diagnosis of fever in children have reviewed relevant data sources on disease burden, under age 5, as resulting from malaria or lower respiratory epidemiology, standards of care in both diagnostics infection of bacterial origin, as distinct from viral infection. and therapeutics, and related topics such as antibiotic Statistics cited elsewhere demonstrate the significant need resistance. We have also undertaken a survey of currently for improved treatment methods for these diseases, which available diagnostic tools, both point of care and have a substantial impact on the world’s poorest children. otherwise, in the developing world, in order to determine We believe that a point of care diagnostic platform which the degree of unmet need. Our analysis has considered meets our Target Product Profile has the potential to potential innovations in diagnostic technologies and have a significant positive impact on global health, and platforms which could have application in the developing specifically the reduction of mortality in children under world. We have investigated the potential costs to age 5 from pneumonia and other bacterial infections. innovators of developing a multiplex panel capable of satisfying the objectives of the target product profile We look forward to refining our analysis based on specific (TPP). We have also reviewed other prize structures, both funder needs and priorities, as well as further industry as to point of care diagnostics specifically, and financial consultation and deeper analysis. incentives generally. In conducting this research, we identified similar published work and tried to leverage, rather than duplicate, prior efforts. We acknowledge that there are many other organizations and efforts directed at designing and promoting effective R&D incentives for global health, and we have attempted to consult with these groups and align our efforts with theirs. Our background work before preparing this specific proposal is intended to serve as the platform for a milestone-based prize which could stimulate innovation 62 BIO Ventures for Global Health C Appendix C: Disease Selection Appendix C: Disease Selection Disease Selection Criteria Viral pneumonia and viral meningitis were excluded as The criteria we used to evaluate possible panels no treatment is available for these diseases. If a patient of diseases included: is negative for both malaria and the bacterial tests listed above, the patient will be assumed to have a viral infection • Diseases characterized by shared but non-specific symptoms. and treated with paracetamol and other supportive therapy only. • The syndrome, or the predominant diseases encompassed by that syndrome, has a significant health impact. • If untreated, the disease has a high mortality and/or morbidity rate. • When treated, there is a success rate ≥75% and/or ≥10 year improvement in life expectancy with a high quality of life. • Treatment is acute, of short duration, and selfadministered, or results from a single intervention by a clinician/health care worker. Other considerations included: • Preference to have a potential impact on maternal or child health. • Likelihood for developed world application to create a diagnostic that is cost effective and practical for long term use. • Level of technical “innovative” step towards developing an effective product. • Level of active diagnostics research and development within each respective disease area. Using these criteria, “fever” was identified as a symptom that can encompass multiple diseases of significance, including malaria, pneumonia and other respiratory infections, meningitis, diarrhea, tuberculosis, and HIV. Further refinement using the criteria described above resulted in identification of our suggested minimal fever panel: To supplement the minimal panel, the following components would add significant value but may require significant new innovation to identify biomarkers and are therefore included in the optimal TPP only: • Pan-viral marker (viral pneumonia, viral meningitis, and other viral infections): Although treatments are rarely given for viral infections, inclusion of pan-viral marker would serve as a control to support a health care worker’s decision not to give an antibiotic when the bacterial tests are all negative. • Active tuberculosis (TB): Active tuberculosis is often confused with pneumonia when diagnostics are not available. Unlike bacterial pneumonia, tuberculosis treatment requires long courses of expensive antibiotics. Delayed or improper treatment of TB can be fatal, and can also contribute to a worsening problem of drug resistance. • HIV: HIV is a complicating factor for diagnosis of disease. HIV positive status can alter a patient’s immune response causing false negatives in an immune-based diagnostic. HIV positive patients are also more susceptible to atypical infections that may not be captured by common causes of diseases included on the proposed panel. • Malaria (Plasmodium falciparum and P. vivax) • Bacterial pneumonia (Streptococcus pneumoniae, Staphylococcus aureus, and Haemophilus influenza b) • Supplemental pan-bacterial marker (bacterial pneumonia, bacterial meningitis, other bacterial infections) 64 BIO Ventures for Global Health D Appendix D: Integrating a Multiplexed Diagnostic into the IMCI Guidelines Appendix D: Integrating a Multiplexed Diagnostic into the IMCI Guidelines An overview of the WHO/UNICEF IMCI guidelines is present- • Definitive diagnosis of malaria and/or pneumonia in ed in Figure 3 of the “Need for New Diagnostics” section. patients with fever and respiratory symptoms: Rapid Here, a summary of the need for definitive diagnostic tools breathing is a danger sign in children with severe and the potential impact of the proposed multiplexed POC malaria as well as a sign for the presence of pneumonia. diagnostic on the IMCI guidelines are presented. Without a diagnostic, health care practitioners must presumptively treat both conditions or make a guess as Unmet Diagnostic Needs in Low Resource Settings to which disease the patient has. A diagnostic that can Within the IMCI treatment algorithm, there are several help a health care practitioner make a correct decision areas where improved diagnostic methods would increase and avoid unnecessary treatment. screen for malaria and pneumonia simultaneously would the quality of care: • Diagnosis of severe disease: When a child is unconscious • Alternative diagnosis of patients with suspected malaria or severely ill, s/he is presumptively treated for malaria and who test negative: There are now POC diagnostics bacterial infection (possible pneumonia, meningitis, or available for malaria. Although these tests are not sepsis) and referred to a hospital. However, in many rural yet widely used, initial introduction has identified a areas, transportation to hospitals or skilled medical facilities few challenges. One challenge is that in patients with is not possible. Without a definitive diagnosis at the point suspected malaria, but who test negative, health care of care, the health care provider is unable to ensure the workers are not equipped to make an alternative appropriate treatment has been administered. diagnosis. In small trials, this has resulted in administration of antimalarials despite a negative test result or the • Definitive diagnosis of bacterial pneumonia: Pneumonia increased use of presumptive antibiotic therapy.57 A is primarily diagnosed by observing rapid breathing. diagnostic that provides alternative diagnoses for patients However, breathing rate is not entirely indicative of without malaria would help overcome the challenges whether the person has bacterial pneumonia. Across all faced by malaria-only diagnostics. cases, accurate clinical diagnosis of pneumonia is less than 60%.56 Viral pneumonia, asthma, and the common cold can also cause changes in breathing rate but will not be affected by antibiotic treatment. Although a POC diagnostic for S. pneumoniae bacterial pneumonia is available in the developed world, it is not widely used in the developing world and would miss bacterial pneumonia caused by other bacterial species. 56 57 66 Lynch et al “A Systematic Review on the Diagnosis of Pediatric Bacterial Pneumonia: When Gold is Bronze.” PLoS One 2010; Ebell, M., “Clinical Diagnosis of Pneumonia in Children” American Family Physician, 2010. Reyburn H et al (2006) “Rapid diagnostic tests compared with malaria microscopy for guiding outpatient treatment of febrile illness in Tananzia: radomised trial.” BMJ 334: 403.; Msellem MI et al (2009) “Influence of rapid malaria diagnostic tests on treatment and health outcome in fever patients, Zanzibar: a crossover validation study.” PLoS Medicine 6: e1000070. BIO Ventures for Global Health Impact of a New POC Diagnostic for Fever on Treatment Algorithm presented in the figure below. Integration of the diagnostic provides the following benefits: A multiplex POC diagnostic test that can identify bacterial • Definitive diagnosis to guide treatment in severe disease infections, especially bacterial pneumonia, would reduce the A multiplex POC diagnostic that can identify bacterial patients infections, bacterial withespecially danger signs; number of treatments given basedtest on presumptive diagnosis pneumonia, would reduce the number of treatments given based on presumptive diagnosis and educed excessive usedifferential of antibiotics or antimalarials and increase theability ability of health workers to increase the of minimally minimallytrained trained health workers to• R perform successful diagnosis of disease. caused by presumptive treatment in patients with fever perform successful differential diagnosis of disease. and cough that may have only one infection; A summary of how a new diagnostic could complement the IMCI treatment algorithm when it Abecomes summaryavailable of how a is new diagnostic complement • Identification of co-infections that may require dual presented in could the figure below. Integration of the diagnostic provides the following benefits: the IMCI treatment algorithm when it becomes available is treatment; and ¥ ¥ ¥ ¥ • Epatients mpowerment of health care workers to provide Definitive diagnosis to guide treatment in severe disease with danger signs; Reduced excessive use of antibiotics or antimalarials caused by presumptive treatment supportive therapy rather than presumptive antibiotics in patients with fever and cough that may have only one infection; or antimalarials if all tests are negative. Identification of co-infections that may require dual treatment; and Empowerment of health care workers to provide supportive therapy rather than presumptive antibiotics or antimalarials if all tests are negative. Figure 24: Integration of New Minimal Fever Panel Diagnostic into IMCI Guidelines Figure 25: Integration of New Minimal Fever Panel Diagnostic into IMCI Guidelines 57 67 BIO Ventures for Global Health E Appendix E: Definition of Terms Used in the Target Product Profile (TPP) Appendix E: Definition of Terms Used in the Target Product Profile (TPP) Definition of terms for TPP: at the temperature and humidity specified in the TPP. Sensitivity: Sensitivities are defined in absolute terms Regulatory requirements will also be taken into account. for organisms where positive diagnosis would result in treatment. In clinical validation, the performance of the Steps to test result: The numbers of steps to test result fever panel diagnostic will also be compared to the gold includes the total number of steps needed for sample standard assays listed under “reference test.” collection, performance of assay protocol, and reading of test results. There should be no steps required for sample Specificity: Specificity will be determined for each preparation, which if needed at all will be internal to the individual component assay/organism. As the specificity device. requirement for each organism will be set at the same level, this section has been condensed to a single value. Time to result: The time to result is the time from application of the patient sample to the device through Reproducibility: Reproducibility will be evaluated in the the time of readout. laboratory clinical validation by performing assays by multiple technicians in a single lab and by technicians in different labs. Duration of valid result: Current POC diagnostics based on Reproducibility will further be evaluated by examining test lateral flow often have a narrow window of time where the performance across multiple clinical trial sites. visible result is valid. If a health care worker proceeds to see other patients before the test result is read or would like to Quality control: The device should contain positive or record the test result several hours later, the result is no longer negative controls to allow the operator or the test itself to valid. Therefore, the duration of the valid result, either through report if the test readout is valid. maintained visual accuracy, data capture, or data storage should ensure that the result remains valid for 24 – 72 hrs. Interfering diseases: Ideally the diagnostic will not have limitations in terms of co-morbidities that will interfere with the test results. For instance, if a patient on a particular medication or with a particular viral disease not diagnosed by this panel always appears as a false positive for a particular assay, this would constitute an interfering disease. Stability: The stability criteria defined in the TPP are designed to mimic the extreme storage and operation temperatures of the developing world where the devices will be used. The device and associated reagents should have shelf lives that meet or exceed these criteria. As actual shelf life evaluation will depend on final packaging and other local conditions, these TPP criteria will be evaluated using accelerated stability testing whereby the device and associated materials or reagents will be evaluated for performance both before and after storage 69 BIO Ventures for Global Health F Appendix F: Impact Model Appendix F: Impact Model Overview • Current and estimated future number mortality due The section outlines the potential health impacts of the to bacterial pneumonia infection new POC diagnostic for fever symptoms proposed by • Estimated current and future utilization of antibiotics the Global Health Innovation Quotient Prize. Given the to treat bacterial pneumonia infections current availability of POC diagnostics for malaria, the • Estimated cost effectiveness of the new diagnostic outputs calculated by this impact model were focused on test (measured as cost per life and life year saved) improvements in testing for bacterial pneumonia in order to The model distinguishes between six regions- Sub-Saharan demonstrate potential health impact. Africa, India, China, Latin America, North America/Europe, Input assumptions around target population and the rest of the world (ROW)- in order to calculate demographics, disease characteristics, testing and similarly disaggregated outputs. Where appropriate, impact treatment parameters, and diagnostic user requirements has also been rolled-up to the global level. were used to calculate key outputs including: A summary of the modeling and logic is shown • Estimated current and future number in Figure 25 below. of accurate diagnoses and treatments of bacterial pneumonia infection Figure 25: Impact Model Overview 25: Impact Model Overview Calculations (outputs) Assumptions (inputs) Demographic Outputs • Target population (under 5 - 000s) • Fever cases per year (under 5 - 000s) Demographic Inputs • Total population, by country/region • % at risk (population under 5), by country/region 1 2 Treatment and Testing Outputs • Change in accurate number of bacterial pneumonia diagnoses • Change in accurate number of bacterial pneumonia treatments • Change in total antibiotic use 5 Disease Inputs • Fever case data (fever cases /child /yr; % seeking treatment), by country/region • Disease incidence (% of fever cases), by country/region • Bacterial pneumonia mortality, by country/region Testing and Treatment Inputs • Access to infrastructure, % by country/region • Current treatment paradigm, by infrastructure access level and country/region • Cost of testing and treatment, by country/region 2,3,4 Mortality and Cost Effectiveness Outputs • Change in bacterial pneumonia mortality • Cost per life saved • Cost per life year saved 71 Diagnostic Inputs • Infrastructure requirements for the future diagnostic • Diagnostic accuracy for both current and future diagnostic methods BIO Ventures for Global Health Summary for Model Logic (4) Using both the infrastructure accessibility and accuracy Referring to Figure 25, the calculation of key outputs listed requirements defined in the Target Product Profile for above is described in the following 5 steps: the proposed diagnostic, a new treatment paradigm was modeled for each segment and resulting post-intervention (1) In order to calculate demographic outputs, regional/ (future) levels of accurate diagnosis and treatment of country data on population and the percent of the bacterial pneumonia were calculated. These resulting population under the age of five58 was combined with disease figures were compared with the baseline diagnosis and incidence and treatment seeking behavior data . These inputs treatment data calculated in step 3 to calculate the were used to calculate the target population for the proposed treatment and testing outputs. These outputs included diagnostic as well as the number of fever and bacterial the change in accurate number of bacterial pneumonia pneumonia cases per year in each region/country. diagnoses, in accurate number of bacterial pneumonia 59 treatments, and in total antibiotic use. (2) Region/country specific access to health care infrastructure data60 was used to disaggregate the (5) Mortality and cost effectiveness outputs were demographic outputs described in step 1 between those then calculated using the demographic outputs (step with access to no, minimal, and moderate/advanced health 1), treatment and testing outputs (step 4), bacterial care infrastructure. From this point forward, all modeling pneumonia mortality rates (disease inputs), and cost calculations remained disaggregated by both region/ assumptions for testing and treatment (testing and country and access to infrastructure level (henceforth treatment inputs).62 “segment”) and were only combined to summarize region/ country outputs. (3) Assumptions around the current testing and treatment paradigm and current diagnostic accuracy61 were used to determine the number of individuals currently being tested and accurately treated for malaria, and the subsequent accuracy of current diagnosis and treatment of bacterial pneumonia. 58 59 60 61 62 72 Population Reference Bureau (2009), “World Population Data Sheet” UNICEF/WHO (2006), “Pneumonia: The forgotten killer of children” RAND Corporation / Gates Foundation (2006), “Developing and interpreting models to improve diagnostics in developing countries” Assumptions were informed by over 80 interviews with global health and diagnostic industry experts conducted by BVGH in the second half of 2010 Based on industry standards and consultation with over 80 global health and industry experts BIO Ventures for Global Health Input and Assumption Detail The Table below provides a comprehensive summary of inputs variables and assumptions used to model the health impact of the proposed diagnostic. Highly sensitive input variables, which have significant impact on mortality and cost effectiveness estimates include bacterial pneumonia mortality rates, testing and treatment costs, and future diagnostic user requirements including accuracy rates and infrastructure accessibility. Input Variable Assumption Sensitivity (10% increase in the input variable) Delineation aligned with UNICEF data on bacterial pneumonia incidence and mortality. Source: Population Reference Bureau 2009 World Population Data Sheet N/A Demographic Inputs Population, by region/country % at risk (population under 5), by region/country - Mortality: +8% - Cost effectiveness: marginal increase Calculated based on Population Reference Bureau 2009 World Population Data Sheet statistics Note: this impact due to the increased number of cases available to be tested by the diagnostic Disease Inputs Fever case data (fever cases /child /yr), by region/ country 73 - Mortality: +10% - Cost effectiveness: n/a Source: UNICEF/WHO (2006), “Pneumonia: The forgotten killer of children” Note: this impact due to the increased number of cases available to be tested by the diagnostic - Mortality: +5% - Cost effectiveness: n/a Fever case data (% of cases seeking treatment), by region/country Source: UNICEF/WHO (2006), “Pneumonia: The forgotten killer of children” Disease incidence (% of fever cases), by region/country Source: UNICEF/WHO (2006), “Pneumonia: The forgotten killer of children” - Mortality: +10% - Cost effectiveness: +8-9% Bacterial pneumonia mortality, by region/country Calculated based on total number of cases and guidance from UNICEF/WHO (2006), “Pneumonia: The forgotten killer of children”9 (see Figure 26 below). - Mortality: +10% - Cost effectiveness: +10% Note: this impact due to the increased number of cases available to be tested by the diagnostic BIO Ventures for Global Health Input Variable Assumption Sensitivity (10% increase in the input variable) Testing and Treatment Inputs Source: RAND Corporation / Gates Foundation (2006), “Developing and interpreting models to improve diagnostics in developing countries” (see Figure 27 below). Infrastructure levels defined as: Access to infrastructure, % by country/ region No infrastructure: medical care within a village or community; no or very limited access to electricity, clean water, physical health care infrastructure, and medical care professionals N/A Minimal infrastructure: medical care within rural health clinics; limited access to electricity, clean water, basic medical facilities, and minimally trained medical care professionals Moderate/Advanced infrastructure: medical care in urban health clinics and hospitals; access to electricity, clean water, laboratories, and medical care professionals Current treatment paradigm, by infrastructure access level and country/region Cost of future testing, by country/region Assumptions of the current and future use of antimalarial medication following accurate test results by malaria prevalence and infrastructure level (see Figure 28 below). Based on consultations with over 80 global health and industry experts conducted by BVGH in 2010. Note: assumptions held constant in both current and future scenarios in order to allow for a comparison in health outcomes based on improved diagnosis and not subject to any changes in treatment procedure. Assumption of $2.00-5.00 per unit, depending on region, based design requirements for the proposed diagnostic. NOTE: currently does not include the cost of distribution and administration or the potential cost of a base unit. Assumption of $1.00 per treatment Cost of antibiotic/ antimalarial treatment, by country/region Note: held constant in both current and future scenarios as well as consistent in all regions. This will ensure that the cost of treatment does not impact cost-effectiveness calculations as treatment costs will be unaffected by the proposed intervention. Significant impact on both mortality and cost effectiveness - Mortality: n/a - Cost effectiveness: -10% - Mortality: n/a - Cost effectiveness: marginal increase due to increased antibiotic cost savings Diagnostic Inputs Infrastructure requirements for the future diagnostic Diagnostic accuracy for both current and future diagnostic methods 74 Assumption based on the target product profile. Current modeling assumes that the future diagnostic will be accessible in minimal, moderate, and advanced infrastructure levels. Significant impact on both mortality and cost effectiveness Current diagnostic method: following malaria treatment- sensitivity of 40%; specificity of 80% and not following malaria treatment- sensitivity of 60%; specificity of 60% Future diagnostic: assumption based on the target product profile. Significant impact on both mortality and cost effectiveness Note: current clinical diagnosis assumes that individuals are more likely to receive an accurate diagnosis for bacterial pneumonia if the cause of fever is assumed to be cause by an illness other than malaria. BIO Ventures for Global Health Figure 26: Modeling Assumptions: Bacterial Pneumonia Mortality, by Region/Country SubSaharan Africa India China Latin America N. America and EU ROW Treated bacterial pneumonia mortality 0.22% 0.14% 0.05% 0.05% 0.03% 0.25% Untreated bacterial pneumonia mortality 2.21% 1.43% 0.46% 0.45% 0.33% 2.50% Figure 27: Modeling Assumptions: Access to Infrastructure, % by Country/Region SubSaharan Africa India China Latin America N. America and EU ROW No infrastructure 25.0% 25.0% 10.0% 5.0% 3.0% 5.0% Minimal infrastructure 47.0% 30.0% 20.0% 5.0% 5.0% 5.0% Moderate/Adv infrastructure 28.0% 45.0% 70.0% 90.0% 92.0% 90.0% Figure 28: Modeling Assumptions: Access to Infrastructure, % by Country/Region 75 Current paradigm: AM for Positive Test Result (%) Current paradigm: AM for Negative Test Result (%) Future paradigm: AM for Positive Test Result (%) Future paradigm: AM for Negative Test Result (%) High malaria prevalence: Mod/Adv infrastructure 100% 0% 100% 0% Low malaria prevalence: Mod/Adv infrastructure 100% 0% 100% 0% High malaria prevalence: Minimal infrastructure 100% 100% 100% 100% Low malaria prevalence: Minimal infrastructure 0% 0% 0% 0% High malaria prevalence: No infrastructure 100% 100% 100% 100% Low malaria prevalence: No infrastructure 0% 0% 0% 0% BIO Ventures for Global Health BIO Ventures for Global Health 221 Main Street Suite 1600 San Francisco, CA 94105 USA Phone/Fax: +1 415-446-9440 www.bvgh.org
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