OnCo
bottlenecksBottleneck

Incentives reward me-too drugs and marginal gains

The system pays the same for a drug that adds two months as for a cure, so companies race to copy rather than to cure.

The economics of oncology reward being the fifth entrant to a validated target more reliably than being the first to attempt an unsolved one. Thousands of trials have tested PD-1/PD-L1 antibodies, more than a dozen of which are approved with near-identical activity, and TROP2 and HER2 ADCs, KRAS G12C inhibitors and BCMA-directed therapies each have crowded fields, while first-in-class attempts on the hardest problems (pancreatic cancer, glioblastoma, metastasis prevention, cachexia) are few. Prices are set with no relation to benefit, so a drug adding two months of median survival can be priced like a cure, and regulatory precedent makes the follow-on path cheaper and more predictable. Patents reward molecules rather than outcomes; nothing pays for the trial that shows a drug can be stopped, given for less time, or replaced by a generic. Aligning reward with magnitude of benefit, through value-based pricing, benefit-graded exclusivity, prizes and public development of unattractive assets, is the structural fix.

criticalfunding incentives59 ideas to fix it
How big the problem is
5,683 trials
Clinical trials of PD-1/PD-L1 inhibitors registered by 2021
2.1 months
Median overall survival gain of cancer drugs approved by FDA 2002-2014
No significant association
Correlation between cancer drug prices and clinical benefit (ESMO-MCBS, ASCO framework) in the US and Europe
No difference in price by novelty; no relation to benefit
Relationship between price and novelty (first-in-class vs next-in-class) or benefit for cancer drugs approved by FDA 2009-2013
Root causes
  • Price is unrelated to benefit, so a marginal drug earns as much per patient as a transformative one.
  • Validated targets carry lower scientific and regulatory risk, which capital markets prefer.
  • Regulatory precedent and surrogate endpoints make follow-on approvals faster and cheaper.
  • Patent exclusivity rewards new molecules, not new evidence about old ones or about how to use less.
  • The hardest problems have long, uncertain, expensive development paths with no interim commercial return.
What is already being tried
  • ESMO-MCBS and the ASCO Value Framework grade benefit so that payers and guidelines can distinguish transformative from marginal drugs.
  • The US Inflation Reduction Act (2022) introduces Medicare price negotiation, weakening the link between market entry and guaranteed price.
  • The EU pharmaceutical legislation reform proposal (2023) modulates regulatory data protection according to unmet need and comparative trials.
  • ARPA-H and the Cancer Moonshot fund high-risk programmes that private capital avoids.
  • FDA Project FrontRunner encourages first-line development of genuinely novel agents rather than late-line me-too positioning.
  • Cancer Grand Challenges and philanthropic funders (Stand Up To Cancer) support first-in-class attempts on neglected problems.
What breaking it looks like
Reward for a new cancer drug scales with its measured benefit, so that the expected return on a curative or first-in-class programme for an unsolved cancer exceeds that of a sixth entrant to a crowded class, and the share of new approvals that are first-in-class with substantial benefit rises measurably.

Ideas to fix it

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speculativephilanthropylarge cost
A $50 million prize for the first off-patent drug proven to extend cancer survival

Offer a large cash prize to whoever proves, in a rigorous trial, that a cheap existing drug helps people with cancer live longer. Prizes pull effort towards neglected problems.

speculativepolicylarge cost
A billion-dollar prize for the first durable cure of a lethal metastatic cancer

Governments and foundations would pledge a very large prize, paid only when a treatment is shown to keep most patients with a currently incurable metastatic cancer alive and disease-free for five years.

speculativeindustrylarge cost
A diversified royalty pool that finances academic phase 1 trials across fifty assets

Investors will not back a single university drug because most fail. A fund that finances fifty of them at once in exchange for a small slice of each one's future royalties spreads the risk enough to attract capital.

speculativepolicylarge cost
A guaranteed purchase prize for the first drug against a named hard target

Governments promised in advance to buy vaccines that did not yet exist, and they got made. The same promise could be made for a drug against a target everyone has given up on.

speculativepolicylarge cost
A Health Impact Fund pilot that pays for measured health gain instead of price

Companies could choose to sell a new cancer drug at cost worldwide and instead be paid from a pooled fund according to how much health it actually delivers.

speculativephilanthropylarge cost
A non-profit pharmaceutical company for the cancers markets ignore

Build a drug company that does not need profits, modelled on the ones that developed new tuberculosis and sleeping-sickness drugs, to take on rare, paediatric and undruggable cancers.

speculativepolicysmall cost
A public equity index for trial sites and sponsors, tied to funding

Rank hospitals and companies each year on how well their trial participants match the people with the disease in their area, and use the ranking when deciding who gets public research money and trial contracts.

early clinicalpolicylarge cost
A public fund and label pathway to trial generic drugs against cancer

Cheap old drugs such as aspirin, statins, metformin and beta-blockers show hints of cancer benefit but no company will pay for the trials. Create a public fund and a way to update their labels.

being tested at scalephilanthropylarge cost
A public fund for trials that test less treatment

No company will pay to find out whether six months of its drug works as well as twelve. A dedicated public fund would pay for those trials, which save patients side effects and health systems money.

speculativeregulatorsmall cost
A repurposing label pathway with short exclusivity that non-profits can hold

Create a way for a charity or university to get a cheap old drug officially approved for a new cancer use, with a few years of protection on that use so trial costs can be recovered without high prices.

speculativepayerlarge cost
Advance market commitments for paediatric and rare cancer drugs

Payers would promise in advance to buy a set number of doses at a set price for any drug that meets a defined bar in a rare or childhood cancer, so companies know the market exists before they invest.

speculativeregulatorsmall cost
An abbreviated approval path for follow-on antibodies within a validated class

Once a class of antibody such as PD-1 blockers is proven, later copies could be approved on smaller trials showing equivalence, forcing price competition and freeing patients and money for genuinely new drugs.

early clinicalresearchsmall cost
An independent hype index grading cancer press releases and news stories

Rate every cancer breakthrough story and press release for spin, using set criteria, and publish the scores so journalists, institutions and readers can see who overstates.

being tested at scalepayerlarge cost
Bundled episode payments for cancer care with bonuses for guideline concordance

Pay hospitals a single amount for a whole course of cancer treatment, with extra for following the evidence, rather than paying per visit and per drug, which rewards fragmentation.

speculativepayersmall cost
Cap public prices for new cancer drugs to tiers of the ESMO and ASCO value scales

Oncology societies already grade how much benefit each new drug gives. Payers should tie the maximum price they pay to that grade.

early clinicalregulatorsmall cost
Conditional approvals that lapse automatically if the confirmatory trial is late

Drugs approved early on promising results should lose that approval automatically if the company fails to finish the follow-up trial by the agreed date.

speculativepolicysmall cost
Count replications and open data in hiring and promotion

Scientists are promoted for novel discoveries, not for checking others' work or sharing data. Changing what universities reward would change what scientists do.

speculativephilanthropylarge cost
Cure-focused prizes: pay for verified long-term cures, not for drugs

Governments and philanthropists commit large payments for whoever achieves a verified jump in ten-year cure rates for a specific cancer, however they do it.

speculativeregulatormedium cost
Develop drugs in children first when the target is a children's target

Children wait years for drugs because adult trials come first, even when the target belongs to a childhood cancer. Some drugs should start with children.

speculativepolicysmall cost
Disclose R&D and manufacturing costs of publicly funded cancer drugs to get coverage

Taxpayers fund much of the science behind new cancer drugs but never learn what they cost to develop. Disclosure should be a condition of public payment.

speculativeregulatorsmall cost
Escrow a share of adult revenue until the paediatric study is done

Companies often delay the childhood cancer studies they are required to do. A slice of the adult drug's revenue would be held back until the paediatric trial is completed.

speculativeregulatorsmall cost
Every screening programme must publish its overdiagnosis rate each year

Screening finds cancers that would never have caused harm, but programmes only report cancers found. Publishing the estimated overdiagnosis rate alongside would make the trade-off visible.

speculativeregulatorsmall cost
Extra exclusivity for sponsors who run treatment-duration and de-escalation trials

Companies lose money when they prove a shorter course works, so they never test it. Give them a modest reward, such as extra months of exclusivity, when they do.

speculativepolicylarge cost
Government reinsurance for phase 2 failures of first-in-class cancer drugs

Investors avoid genuinely new cancer drugs because most fail in mid-stage trials. A public insurance scheme would repay part of the loss when a first-in-class drug fails honestly, making the bet worth taking.

early clinicalcliniclarge cost
Hospital-based CAR-T manufacturing at cost through a public network

Academic hospitals can already make CAR-T cells for a fraction of the commercial price. A public network would scale that so more patients can be treated for less.

speculativepolicysmall cost
Judge funding programme officers on burden alignment and trials completed

The people who run funding programmes are judged on money moved and papers produced. Judge them instead on whether their portfolios match the burden of disease and whether the trials they fund finish.

speculativepayersmall cost
Launch prices indexed to the ESMO benefit scale, revisited when survival matures

Pay more for drugs that clearly help people live longer or better, and less for those that barely move the needle, using a public benefit scale doctors already use.

speculativepolicysmall cost
Listed companies must disclose top-line data, not just 'did not meet endpoint'

When a public company announces a trial failure, it should be required to give the actual numbers, as it must for a success.

being tested at scalepayersmall cost
Make skipping radiotherapy the default for very low-risk breast cancer

Trials show older women with the lowest-risk breast cancers gain almost nothing from radiotherapy after lumpectomy. Yet most still get it. Track and reward omission.

speculativephilanthropylarge cost
Milestone prizes for first-in-class mechanisms reaching human proof of concept

Pay a fixed prize, of tens of millions, to the first team to show that a completely new way of attacking cancer works in patients, so that the riskiest early bets are rewarded even before a product exists.

early clinicalresearchlarge cost
Multi-arm, multi-stage trials to answer which order to give approved drugs

Several drugs are approved for the same cancer, but nobody tests which order works best because no company benefits from the answer. Public multi-arm trials could settle these questions efficiently.

early clinicalregulatorsmall cost
No accelerated approval for a combination without proof each part contributes

Regulators should refuse to approve a two-drug combination unless there is evidence that both drugs are doing something, so patients are not exposed to useless extra toxicity and cost.

early clinicalpayermedium cost
Outcome-based annuity payments for potentially curative one-time therapies

Instead of paying hundreds of thousands up front for a CAR-T or gene therapy, the health system would pay in yearly instalments that stop if the cancer comes back, so companies are paid for cures, not attempts.

speculativepolicysmall cost
Patent term extension scaled to proven survival gain

A drug that adds years of life would earn extra years of market protection; one that adds a few weeks would earn none. Extensions would be lost if the promised benefit is not confirmed.

early clinicalphilanthropymedium cost
Patent-free open-source development of repurposed and off-patent cancer drugs

Fund trials of old, cheap drugs with anti-cancer signals without seeking patents, and have generic makers produce them, so cost, not profit, decides whether patients get them.

speculativepolicylarge cost
Pay a prize for rare cancer drugs instead of hoping for a market

No company can profit from a drug for a cancer that affects a few hundred people. A guaranteed payment for success would change that calculation.

speculativepayermedium cost
Pay for cancer AI only when it has outcome evidence, then pay properly

Health systems would pay for AI tools that have shown in trials that they help patients, and pay nothing for tools that have not, giving makers a reason to run the trials.

speculativepayersmall cost
Pay for residual disease tests only inside a trial or registry

Leftover-cancer blood tests are being sold faster than evidence that acting on them helps. Paying for them only when the result is recorded would generate the missing evidence.

early clinicalpayermedium cost
Pay for supervised exercise the way we pay for drugs

A large trial showed a structured exercise programme improved survival after bowel cancer. Almost no health system pays for it, so almost no patient gets it.

speculativepayermedium cost
Pay insurers and health systems for cancers prevented and caught early

Health systems earn from treating cancer, not preventing it. Paying them for lower cancer incidence and earlier stage in their population would flip the incentive.

speculativeclinicsmall cost
Pay investigators for finishing and publishing trials, not for enrolling patients

Trial sites are paid per patient recruited, so nobody is paid to finish the study or report the answer. Shift part of the payment to completion and publication within a year.

speculativepayermedium cost
Pay oncologists for the time it takes to enrol a patient

Discussing and enrolling a patient in a trial takes an oncologist far longer than prescribing the usual treatment, and they are not paid for it. Paying for that time would remove a quiet disincentive.

being tested at scalepayersmall cost
Pay per course of radiotherapy, not per session, so short courses are not penalised

Hospitals are paid for each radiotherapy session, so a proven five-session course earns less than an unproven twenty-five-session one. Paying per course removes the reason to give more treatment than needed.

early clinicalpayermedium cost
Pay-for-cure contracts: instalment payments for curative therapies contingent on durable remission

For very expensive one-time treatments such as CAR-T, pay in instalments over years and stop paying if the cancer comes back, so price tracks the cure actually delivered.

early clinicalpayermedium cost
Payers fund trials of cheaper, shorter or lower-dose versions of expensive treatments

Health insurers and national health systems have every reason to find out whether half the dose or half the duration of a costly drug works as well. They would fund those trials directly and keep the savings.

speculativepayersmall cost
Payers pre-commit to cover off-label generics when a definitive trial is positive

Even when a trial proves a cheap old drug helps, insurers may refuse to pay because it is not licensed for cancer. A standing promise to pay would remove that fear.

speculativephilanthropymedium cost
Prizes for unpatentable surgical and radiotherapy techniques proven in trials

Nobody can patent a better way of operating or a shorter radiotherapy schedule, so nobody is rewarded for proving one. Prizes for technique improvements shown to work in trials would fill that gap.

speculativeresearchsmall cost
Promote academics for trials completed, data shared and findings replicated

Universities and cancer centres would change how they promote scientists, giving credit for finishing trials, sharing data, replicating others' work and publishing failures, not just for papers in famous journals.

speculativepolicylarge cost
Public co-investment in first-in-class phase 1 with a royalty return

A public investment fund would match private money in the riskiest early trials of truly new cancer drugs, taking a small share of future royalties so that taxpayers gain when the bets pay off.

early clinicalpolicylarge cost
Public-option manufacturing for essential generic cancer drugs in shortage

Cheap, essential chemotherapy drugs such as cisplatin keep running short because there is little profit in making them. A publicly-backed non-profit manufacturer would guarantee supply at a fair price.

being tested at scalepayermedium cost
Publicly funded dose-reduction trials of expensive approved drugs

Many approved cancer drugs probably work just as well at half the dose, which would halve their side effects and cost. Companies will not test this, so payers and public funders should.

early clinicalpayermedium cost
Reassess cancer drug prices at three years using real-world outcomes

Set the price of a new cancer drug provisionally, then adjust it up or down after three years depending on how well patients actually did.

speculativeregulatorsmall cost
Require head-to-head trials against the best in class for later entrants

Once two drugs of a kind exist, a third should have to prove itself against the best of them, not against an outdated comparison, so patients and payers learn which is actually better.

speculativepolicysmall cost
Shorter exclusivity for later-in-class drugs without added benefit

The fifth PD-1 antibody that is no better than the first should not get the same market protection as the first. Exclusivity would shrink for copies that add nothing.

speculativepayermedium cost
Social impact bonds for cancer prevention, repaid from avoided treatment costs

Investors would fund vaccination and screening campaigns up front and be repaid by health systems only if the campaigns hit verified targets, turning future savings into money for prevention now.

speculativepolicysmall cost
Sponsors deposit the confirmatory trial budget in escrow at accelerated approval

To get an early approval, a company would set aside the money for the follow-up trial up front, so the trial cannot be quietly abandoned.

speculativepolicysmall cost
Three years of indication-specific exclusivity for proving a new cancer use of an old drug

Nobody funds trials of old drugs because competitors can sell the result for free. A short exclusive period for the new use, like the one given for children's studies, would change that.

speculativeregulatorsmall cost
Transferable priority vouchers for first-in-class drugs, with price conditions

Reward companies that deliver a genuinely new kind of cancer drug with a sellable voucher for faster review of another product, but only if they agree to fair pricing and global access.

speculativepolicysmall cost
University licences with royalties indexed to benefit and global access

When universities license cancer discoveries to companies, the contract would reward companies that price fairly and sell in poor countries, and penalise those that do not, using the royalty rate as the lever.

Key papers

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A $50 million prize for the first off-patent drug proven to extend cancer survivalA billion-dollar prize for the first durable cure of a lethal metastatic cancerA diversified royalty pool that finances academic phase 1 trials across fifty assetsA guaranteed purchase prize for the first drug against a named hard targetA Health Impact Fund pilot that pays for measured health gain instead of priceA non-profit pharmaceutical company for the cancers markets ignoreA public equity index for trial sites and sponsors, tied to fundingA public fund and label pathway to trial generic drugs against cancerA public fund for trials that test less treatmentA repurposing label pathway with short exclusivity that non-profits can holdAdvance market commitments for paediatric and rare cancer drugsAn abbreviated approval path for follow-on antibodies within a validated classAn independent hype index grading cancer press releases and news storiesBundled episode payments for cancer care with bonuses for guideline concordanceCap public prices for new cancer drugs to tiers of the ESMO and ASCO value scalesConditional approvals that lapse automatically if the confirmatory trial is lateCount replications and open data in hiring and promotionCure-focused prizes: pay for verified long-term cures, not for drugsDevelop drugs in children first when the target is a children's targetDisclose R&D and manufacturing costs of publicly funded cancer drugs to get coverageEscrow a share of adult revenue until the paediatric study is doneEvery screening programme must publish its overdiagnosis rate each yearExtra exclusivity for sponsors who run treatment-duration and de-escalation trialsGovernment reinsurance for phase 2 failures of first-in-class cancer drugsHospital-based CAR-T manufacturing at cost through a public networkJudge funding programme officers on burden alignment and trials completedLaunch prices indexed to the ESMO benefit scale, revisited when survival maturesListed companies must disclose top-line data, not just 'did not meet endpoint'Make skipping radiotherapy the default for very low-risk breast cancerMilestone prizes for first-in-class mechanisms reaching human proof of conceptMulti-arm, multi-stage trials to answer which order to give approved drugsNo accelerated approval for a combination without proof each part contributesOutcome-based annuity payments for potentially curative one-time therapiesPatent term extension scaled to proven survival gainPatent-free open-source development of repurposed and off-patent cancer drugsPay a prize for rare cancer drugs instead of hoping for a marketPay for cancer AI only when it has outcome evidence, then pay properlyPay for residual disease tests only inside a trial or registryPay for supervised exercise the way we pay for drugsPay insurers and health systems for cancers prevented and caught earlyPay investigators for finishing and publishing trials, not for enrolling patientsPay oncologists for the time it takes to enrol a patientPay per course of radiotherapy, not per session, so short courses are not penalisedPay-for-cure contracts: instalment payments for curative therapies contingent on durable remissionPayers fund trials of cheaper, shorter or lower-dose versions of expensive treatmentsPayers pre-commit to cover off-label generics when a definitive trial is positivePrizes for unpatentable surgical and radiotherapy techniques proven in trialsPromote academics for trials completed, data shared and findings replicatedPublic co-investment in first-in-class phase 1 with a royalty returnPublic-option manufacturing for essential generic cancer drugs in shortagePublicly funded dose-reduction trials of expensive approved drugsReassess cancer drug prices at three years using real-world outcomesRequire head-to-head trials against the best in class for later entrantsShorter exclusivity for later-in-class drugs without added benefitSocial impact bonds for cancer prevention, repaid from avoided treatment costsSponsors deposit the confirmatory trial budget in escrow at accelerated approvalThree years of indication-specific exclusivity for proving a new cancer use of an old drugTransferable priority vouchers for first-in-class drugs, with price conditionsUniversity licences with royalties indexed to benefit and global access

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