DIY medicine: The rebellion against Big Pharma

• Author:
• Author name

  Quantumrun Foresight
• June 16, 2022

Insight summary

Skyrocketing drug prices are pushing scientific and healthcare communities to take matters into their own hands by producing affordable medicines. This DIY medicine movement is shaking up the pharmaceutical industry, prompting major companies to reconsider their pricing strategies and spurring governments to think about new healthcare policies. The trend is not only making treatment more accessible for patients but also opening doors for tech firms and startups to contribute to a more patient-centered healthcare system.

DIY medicine context

Rising prices of critical medicines and treatments have led members of scientific and healthcare communities to manufacture these treatments (if possible) so that a patient’s health is not placed at risk due to cost factors. In the European Union (EU), hospitals can produce certain drugs if they follow specific rules.

However, if healthcare facilities are primarily motivated to reproduce drugs due to high prices, they reportedly face increased scrutiny from healthcare regulators, with inspectors vigilant for impurities in the raw materials used to make these drugs. For example, in 2019, regulators banned CDCA production at the University of Amsterdam due to impure raw materials. However, in 2021, the Dutch Competition Authority imposed a USD $20.5 million fine on Leadiant, the world’s leading manufacturer of CDCA, for abusing its market position by employing excessive pricing strategies   

A 2018 study at the Yale School of Medicine found that one in four diabetes patients limited their insulin usage due to the drug’s costs, increasing their risk of kidney failure, diabetic retinopathy, and death. In the United States, Baltimore Underground Science Space founded the Open Insulin Project in 2015 to replicate the insulin manufacturing process of big pharmaceutical companies in protest against the industry’s excessive pricing practices. The project’s work allows diabetic patients to purchase insulin for USD $7 a vial, a marked reduction from its 2022 market price of between USD $25 and $300 a vial (market depending). 

Disruptive impact

The rise of DIY medicine, facilitated by partnerships between civil society groups, universities, and independent drug manufacturers, could significantly influence the pricing strategies of major pharmaceutical companies. These collaborations aim to produce medicines for severe illnesses at a more affordable cost, challenging the high prices set by large drug manufacturers. Public campaigns against these big companies could gain momentum. In response, these companies may feel compelled to lower their drug prices or take proactive measures to improve their public standing, such as investing in community health initiatives.

In the political arena, the DIY medicine trend could prompt governments to reevaluate their healthcare policies. Civil society groups may lobby for government support in local drug manufacturing to mitigate supply chain risks and enhance healthcare resilience. This move could lead to new laws that encourage domestic production of essential medicines, reducing dependency on international suppliers. Lawmakers might also consider introducing regulations that set a maximum price for specific drugs, making them more accessible to the general population.

As medicines become more reasonably priced and locally produced, patients may find it easier to adhere to treatment plans, improving overall public health. Companies in sectors other than pharmaceuticals, such as tech firms specializing in health apps or diagnostic tools, may find new opportunities to collaborate with these DIY medicine initiatives. This development could lead to a more integrated and patient-centered approach to healthcare, where individuals have more control and options for their treatment.

Implications of the growing DIY medicine industry 

Wider implications of DIY medicines may include: 

• Major producers of insulin, such as Eli Lilly, Novo Nordisk, and Sanofi, lowering insulin prices, thereby reducing their profit margins. 
• Major pharmaceutical companies lobbying state and federal governments to aggressively regulate (and outlaw) the manufacture of select drugs by organizations outside the traditional pharmaceutical industry.
• Treatments for a variety of conditions (such as diabetes) becoming more readily available in low-income communities, leading to improve healthcare outcomes in these areas.  
• Increased interest in and sales of pharmaceutical manufacturing equipment to civil society groups and independent drug production companies. 
• New medical technology startups being founded specifically to reduce the cost and complexity of manufacturing a range of drugs.
• Increased partnerships among independent organizations, leading to more democratized community-based healthcare.

Questions to consider

• Do you think the price of insulin should be regulated worldwide? 
• What are the potential disadvantages of specific medicines being manufactured locally versus large pharmaceutical companies?