Pharmaceutical Public-Private Partnership Agreement Sample Contracts
PHARMACEUTICAL PUBLIC-PRIVATE PARTNERSHIPS: MOVING FROM THE BENCH TO THE BEDSIDEPharmaceutical Public-Private Partnership Agreement • September 4th, 2014
This article provides a game theory and law-and-management analysis of for- profit pharmaceutical public-private partnerships, a complex type of legal ar- rangement in the highly regulated pharmaceutical industry. A pharmaceutical public-private partnership (PPPP) agreement is a legally binding contract be- tween a private pharmaceutical enterprise and a public research university (or a private university conducting publicly funded research) to support research leading to new commercial pharmaceutical and biologic products. The key pur- pose of this article is to provide a theoretical explanation and a practical per- spective on how properly crafted PPPP arrangements can promote innovation more efficiently than traditional self-optimizing contracts. In particular, a prop- erly framed binding contract, coupled with respect for positive incentives, can move the parties away from an inefficient prisoners’ dilemma Nash equilibrium to the Pareto Optimal Frontier and thereby increase both th