Private sector financing for global health research and development is more important than ever. Philanthropy, government funding and pharmaceutical industry support have built a remarkable pipeline of global health innovations—with as many as 200 new products currently under development—but late-stage clinical trials are costly and development expenses are outpacing charitable support. Traditional investment capital can play a meaningful role in solving this problem, particularly when it is supplied by investors who include the expected social impact of their activities in their return calculations.
“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."
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.
“Innovation and investment in global health research and development are the way forward in tackling pressing health challenges and delivering meaningful results for those most in need around the world,” said the Hon. Christian Paradis, Canada’s Minister of International Development. “This Fund is blazing the trail, and Canada is proud to have played a key role in its establishment.”“Millions of children die each year or suffer from debilitating conditions because the right treatment does not exist for them,” said Jamie Cooper-Hohn, Chair of the Children’s Investment Fund Foundation (CIFF). “Relatively little investment goes to the development of new drugs, vaccines and diagnostics specifically targeted at children in developing countries where child mortality is most dire. CIFF is very pleased to be a major investor into the Global Health Investment Fund, which promises to deliver new finance and focus to this neglected area.”