The business case for medical product donations

At least two billion people worldwide live without reliable access to essential medicines. Needs-based medical product donations from pharmaceutical corporations are part of the solution. We unpack the business case and impact of medical product donations.

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The benefits of medical product donations are plentiful - from providing essential medicines to people in need, to the significant cost saving of destruction - medical product donations could be described as a ‘no brainer’. But what can get in the way of pharma companies donating product? And how can the pharma industry support best practice to achieve real population-scale health outcomes?

We interviewed IHP’s Corporate Partnerships Manager, Lily Jones-Herbst and Senior Corporate Partnerships Officer, Emma Shepherd to learn more:

Back to basics, what are the benefits of product donations for pharma companies?

ES: “The benefits of donating product are that you’re not having to destroy product, and therefore you save money. You also save on the environmental impact of destruction. You’ve also got the benefit of contributing to the ‘S’ in ESG policy because of the social impact of donating product. Further to that, a good social policy attracts top talent as it’s well recognised that people want to work for companies  that are ethical.”

LJH: “Further still, investors are looking to ESG as an indicator of company performance. If a company has made investment in their ESG and are making product donations, that’s an indication that the company is performing well; they’re giving back.

“There’s also the indirect benefit that when a company’s product is available in a new market – the healthcare professionals are becoming aware and familiar with the product, the knock on of which is demand to ministries of health to supply the product to ensure continuation of supply.”

ES: “Health system strengthening is an important benefit to donors. Product donations free up resources to strengthen healthcare systems in other ways; be that training, or infrastructure. For many ministries of health in middle and low-income countries, their budgets are tiny compared to what’s recommended by the WHO, so product donations help to fill the gap.”

LJH: “Product donations free up resources to train new doctors and build new health facilities. It’s all about improving a country’s health infrastructure and freeing up resource to invest elsewhere. In doing so, there’s more likelihood of ministries of health going on to purchase medicines for a population.”

What can discourage pharma companies from donating medicines?

ES: “Pharma companies can sometimes be hesitant about medical product donations because of concerns about product leaving the usual supply chain; that medicines may become falsified or be distributed in ways that are not aligned with GDP.”

LHJ: “IHP’s compliance and adherence to process provides assurance to donors, something that’s designed into Boaz. Our donors find that track and traceability through Boaz really valuable. Sometimes I’ve seen that be the trigger to overcome those hesitations or reservations.”

ES: “Sometimes there are anecdotes of medicines not being donated on a needs-basis, or product sitting unused in a warehouse, which can, understandingly put people off. That's why IHP only ship product we have a home for, and our partners are able to request the appropriate quantity they have need for. And of course, our long-dating requirements. It means that product doesn’t end up being in a warehouse for a long time that’s not needed and doesn’t end up needing to be destroyed upon expiry. Unfortunately, the anecdotes stick around, which can put people off.

“Long-dated product; needs-based donations; track and traceability for the end-to-end journey; being able to report on usage – these are hallmark characteristics of the IHP way, and as such, have been built into Boaz.”

Long-dated product; needs-based donations; track and traceability for the end-to-end journey; being able to report on usage – these are hallmark characteristics of the IHP way, and as such, have been built into Boaz.

LJH: “It’s also why IHP supports a constant process of improvement to improve the product donations space. Being part of PQMD (Partnership for Quality Medical Donations), and offering Boaz are examples of how we are promoting best practice and setting the standard for medical donation worldwide.

Tell us more about the impact of promoting best practice?

LJH: “Promoting best practice leads to a building of trust with all parties involved. You need trust from the donor company that the NGO partner is going to use it correctly. You need trust from the NGO partner in the donor company that they’re only going to supply stock that’s long-dated and quality medicine that would be used in the donor country itself. And then you need trust from patients in the recipient country; not only in the NGO partner who’s delivering the medicine but also the donor company who’s offering it.

“I also think it’s really important to have the local voice from recipient countries represented, which is sometimes lost in the conversations that happen elsewhere; something we are working to change. All our product donation offers are assessed by in-country clinicians who are working directly with the patients on the ground to ensure the product is needed.  

“This touches on the challenge of transparency too. For example, when sharing donations into Boaz, we require lots of information about each product which is so important. NGO partners use that information to make a decision on whether they need and can use the product. And also what quantity they require. That part of the process is vital in order to ensure the recipient can understand what it is they are getting. Boaz enables that; it ensures that the process is done well, and correctly from the start to end.”

How does Boaz build trust and promote transparency?

ES: “Through Boaz, we, and our donor companies have transparency through the end-to-end process. They can be assured that we work on a needs-led basis. Boaz ensures that everyone has sight of where and how the donation has been distributed. Donors can be assured that stock won’t be forgotten about in a warehouse.

“Through Boaz, IHP ensures that all parties stick to good distribution practice. IHP is regulated and compliant just as anybody else distributing product would be. And Boaz enables us to do that through things such as track and trace down to batch level. Through Boaz, we can see where the product has gone, and so, if there are any instances of adverse events of product recall – we know where the product is and can deal with it appropriately because it’s all tracked and traced via Boaz. We ensure that all parties stick to the standards and are trustworthy, making sure everyone ticks the right boxes. Boaz ensures that the process is done well, and correctly.

“Fundamentally, of course, this is about resourcing healthcare professionals and their patients with essential medicines they wouldn’t otherwise have access to. But product donations also act as a catalyst for good training for doctors and medical professionals. Some countries’ ministries of health departments may only purchase one type of medicine, but having a range can help healthcare professionals learn how to prescribe effectively because they have a choice of more than just one.”

When have you seen this all come together for success?

ES: “One donor company comes to mind, who originally donated in response to a humanitarian disaster. They had an excess of a particular drug, and due to their positive experience of working with IHP, they have gone on to make a planned donation too, and there’s a desire to do more.”

LJH: “Another company we work with are dedicated to increasing their support year on year. Having started with ad hoc donations, in recent years, this culture of generosity has become ingrained in their culture; they’re committed to it. They’re donating more and more, year on year!”

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Whatever you give, you could be making a life-changing, even life-saving difference to someone every month.

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