New Fund Supports Late-Stage Health Technology
Individual and institutional investors will be able to finance late-stage health technologies designed to save the lives of people in low-income countries, thanks to a new investment fund structured by JPMorgan Chase & Co. and the Bill & Melinda Gates Foundation.
The initial group of investors has injected $94 million into the Global Health Investment Fund (GHIF), and it will help advance finance solutions for illnesses such as malaria, tuberculosis, HIV/AIDS and maternal and infant mortality.
To help mitigate the risk of investing in the clinical development of new technologies, the Gates Foundation and the Swedish International Development Cooperation Agency have committed to partially offset potential losses in the Fund, which will seek a financial return for investors by targeting high-impact technologies with public health applications in both developed and emerging markets.
“The Global Health Investment Fund demonstrates the potential for innovative collaborations and thoughtful financial structures to mobilize new sources of capital for social challenges,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co. “This product brings a diverse group of investors together around the shared objective of developing life-saving technologies in a financially sustainable way.”
The GHIF will invest in new drugs and vaccines, emerging diagnostic tools, child-friendly formulations of existing products, expanding manufacturing capacity and other applications that will help bring affordable technologies to those most in need.
Philanthropy, government funding and pharmaceutical industry support have built a remarkable pipeline of global health innovation. Currently there are as many as 200 new products under development. However, late-stage clinical trials are costly and development expenses are outpacing charitable support, which increases the case for private sector financing for global health research.
“This innovative fund is mobilizing financing for medical advances that could potentially save millions of lives,” said World Bank President Jim Yong Kim. “It shows that we can align the needs of investors with the need for cures for diseases which cause so much suffering in developing countries."
Image credit: GHIF