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The Ten Billion Dollar Question

Posted by: BIO Ventures for Global Health on 5/5/2010
The BIO International Convention provides distraction at every corner, but at Tuesday morning’s session on vaccines for the developing world, all eyes were on Erik Iverson, Associate General Counsel of the Bill & Melinda Gates Foundation.
 
Bill and Melinda Gates recently pledged $10 billion over the next ten years to vaccines, creating the “decade of vaccines.” The ten billion dollar question, of course, is what will the Foundation do with these funds?
 
Right now, all options are still on the table. Iverson said that it remains unclear where in the vaccine research field the Foundation will decide to invest the money. At the top of the agenda is an HIV vaccine, but according to Iverson, the Foundation is also looking carefully “across the entire spectrum” of needs—from capacity building, to technology transfer, to regulatory harmonization, to broader policy goals.
 
What is clear is that the need for financing for vaccine research and capacity building is unmistakable. Panelists listed their myriad priorities. These concerns included additional resources, training, and funding for discovery, lab work, clinical trials, approval, manufacture, and delivery of vaccines. Each of the panelists mentioned that innovative financing mechanisms and new incentives are also important.
 
Martin Friede, of the World Health Organization, also reminded the audience—and I will interject that this is a good reminder to readers as well—that “when we talk about capacity building in developing countries, we mean not only the capacity to manufacture vaccines but also the capacity to make decisions of what to do.” In order for vaccine manufacturing to be sustainable, developing country governments, companies, and scientists must be involved in all stages of work.
 
This type of partnership will require the cooperation and support of developing country governments, as well as continued financial support from wealthy nations.
 
Ultimately, the Gates Foundation hopes the $10 billion will serve to leverage other funds. “Ten billion dollars is really only a drop in the bucket,” Iverson emphasized.
 
Panelist Rita Khanna, General Counsel of the Aeras Global TB Vaccine Foundation, agreed, pointing to an $8 million grant from the Gates Foundation that Aeras was able to use to gain further funding. In this particular case, $8 million turned into $16 million, with additional funding from multiple partners.
 
Given that, I have extremely high hopes for this ten billion.
 
Thayer Hardwick is a Research Analyst at BIO Ventures for Global Health.
Categories: Incentives Meetings
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by simon on The Most Important Hire in Global Health
"I'd like to comment on the fact that the term "cost-effective" vaccines is not meaningful, since cost-effectiveness always depends on the Willigness to Pay of a given coutnry (which WHO recommends to be 1-3xGDP per capita). E.g. while in UK a medicines/vaccine that has incremental cost-effectiveness ratio of 43,000-130,000 USD/QALY will be considered "cost-effective", it will not be the case in India where the threshold is 1-3xGDP=1,000-3,000 USD/QALY. It means that the same vaccine would need to be 43x cheaper in India than in UK to be cost-effective. I believe that the future of developing countries will depend on their ability to develop vaccines locally and sell them at local prices. I am currently involved in a research project in India which aims at understanding the challenges of entrepreneurship and its role in affordable healthcare in the future. Best regards " Read more »

by Mark H on Trademark of Innovation
"Often the pharmaceutical companies are seen as evil because they do not do enough to help the poor by giving away medicines or licence rights. But we must consider two things: 1 they are commecial companies and have legal obligations towards their shareholders i.e. their prime concern is making money 2 these companies invest a vastly greater amount of money in R&D than the government. As a result their R&D occasionally finds cures inadvertently for other diseases - even if they are not actively trying to create the right medicine. So how do you create an incentive for the most effective creator of new innovative cures whose primary goal is to make money (like all companies)? Well the answer seems obvious - reward them with tax benefits that would help push them above their competitors. Whilst you could argue that this would prevent the government from reaping the benefits (tax) you could also say that the competition created would drive innovation and spending in the private sector which would improve the economy. A win win win situation - pharmaceuticals, government, developing countries!" Read more »

by BIO Ventures for Global Health on Ready to Go
"Thanks so much for your interest, Trudy. We are not currently working with the Carter Center but we are interested in speaking with them to gain epidemiological information for our Global Health Primer, and so hope to be working together in the future. " Read more »

  

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