Pay For Success(PFS) is a new financial model for re-purposing off-patient medicines for developing new therapy without requiring to obtain regulatory approval for large clinical trials, financial burden and decades of clinical trials, testing and manufacturing.
Pay For Success program provides a framework to take off-patent drugs and conduct clinical trials to use the drug to treat new diseases. Under this new system, health insurers pay a subsidized price for generic drugs based on the promise of overall cost savings through improved health and reduced hospitalization. The reason it is so cheap and fast is because there are already years or even decades of existing safety data on generic drugs, giving clinical trials a huge head start. A typical investor will allocate fund to conduct clinical trial on off-patent drugs those that have potential to treat a new disease. The Clinical Research Team will conduct clinical trial on chosen potential drugs. The investor is well aware of the risk being part of the investment eco-system. They are the owners of the IP-NFT as result of trial. If the result is successful, the health insurers pay towards the cost of trial as well as manufacturing the drug. The Payor pays only when trial is successful. So, they are always on the winning side. The Payor amount is saved in a Smart Contract. A multi-sig body of people validate the clinical trial result so that money could be paid from Payor to investor who funded the project to begin with.
How it's made
- Impact Investor funds Clinical Trial for off-patent drugs and receives IP-NFT for Clinical Test Results. Fund released using Superfluid. - Clinical Trial Research Agency posts test results to Pay For Success (PFS) Contract - Payer (crowd-funded, multiple) deposits to the escrow account of the Contract and receives a NFT as certificate. Fund deposited to Compound for DeFi, interest earnings - PFS DAO identifies, conducts KYC and adds research Validators to the PFS Contract - Research Validators validate and sign test results - PFS DAO releases payment from Payer escrow account to investor. There is a 48 hour period during which executives (Cermaic DID) of the Contract can void the payment.