Innovative Financing for Global Health R&D
Because the eradication of diseases like tuberculosis and malaria would have a dramatic impact on emerging economies, investors in these countries including multinational aid providers, foundations, corporations and institutional funds sought to work together in innovative ways to increase the pool of capital available for drug discovery.
The Milken Institute convened a Financial Innovations Lab with support from the Bill & Melinda Gates Foundation in New York in June 2012 to explore the most effective financial models to fund the development of such drug treatments and vaccines. Lab participants, who included global health advocates and public and private sector investors, concluded that R&D for developing world diseases represented an opportunity to engage investors with both demonstrable financial and social returns. The lab outlined strategies for improving and expanding the use of financial tools to engage the largest pools of capital available. The group emphasized technology, health delivery mechanisms in remote locations, and improved global R&D collaboration as keys to progress.
Post lab, the Milken Institute partnered with the Gates Foundation and JP Morgan to structure the $108MM Global Health Investment Fund allowing individual and institutional investors to finance late-stage global health technologies combatting malaria, HIV/AIDS, tuberculosis and infant mortality in low-income countries.
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