Transcript Harnessing the New Sciences

Public-Private Partnerships
Washington DC: Global Health Council, June 1 2006
Charles A. Gardner
The Rockefeller Foundation
Goal: Product Availability for the Poor
IAVI: International AIDS Vaccine Initiative
MMV: Medicines for Malaria Venture
TB Alliance: Global Alliance for TB Drug Development
PDPs
IPM: International Partnership for Microbicides
PDVI: Pediatric Dengue Vaccine Initiative
GFHR: Global Forum for Health Research
R&D
MIHR: Ctr for Management of IP in Health R&D Local PPPs
BVGH: Bioventures for Global Health
Procurement
GDF: Global TB Drug Facility
Launch
Manufacture
Maturity
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010...
Priorities: Based on Health Inequities
Leading Causes
of Death
Perinatal conditions
Lower respiratory infections
HIV/AIDS
Diarrhoeal diseases
Unipolar depressive disorders
Ischaemic heart disease
Malaria
Cerebrovascular disease
Tuberculosis
Road traffic accidents
Percent of DALYs
in Developing /
Developed Regions
6.2
5.6
11.1
20.9
0.5
0.5
>100
0.7
26.3
1.0
IAVI & IPM
MMV & MVI
TB Alliance
& Aeras
Source: 1990 data from: Global Burden of Disease, Murray and Lopez, 1996, WHO, p. 180, 262; 2001 data from World Health Report 2002 Annex
Prepared by The Boston Consulting Group
Priorities: Based on Demand & Science
IAVI
Aeras
Social
Demand
TB Alliance
MVI
MMV
FIND
IPM
PDVI
Scientific Maturity
Filling the Ecological Niches
They Have Collectively Raised over $1.5 Billion USD
It wasn’t just about products

Product Development

Advocacy and Awareness

“Culture Change”
These were the original goals of The
Rockefeller Foundation in this field
PDPs: Public and Private Contributions
Core Budgets(1)
IP Rights for Disease
Endemic Countries(2)
Expertise(2)
Model/Process(2)
Advisory Board(3)
& Management(4)
Public Sector
Private Sector
Resources Invested
in Projects
R&D Work Being
Carried Out
100% Public
50-50 Joint Venture
100% Private
(1) Less than 1% private capital based on MMV and IAVI in 2003
(2) BCG subjective rating including development of sound business plans, conduct of pharmaco-economic analyses
(3) Approximately a third of Boards have private sector experience based on IAVI (8/19), MMV (4/9), & GAVI (2/18)
(4) Approximately 42% of management with private experience: IAVI (1/2); MMV (5/5); IPM (1/4); GATB (1/4); GAVI (1/11)
Non-Profit Business Models

A business plan; market analyses

CEO, CSO, CFO, Board of Directors
(Public and Private Representatives)
Stakeholders’ Meetings
 Portfolio Management Strategy


Access and Advocacy Strategy
PDP Portfolio Approach
new to public-sector product development

Better than Old Linear Model

Allows Modeling for Success

Insulates Donors from Risks
PDPs Expand Development Pipelines
2000
70
IOWH 3
60
TDR 11
50
Number of
drugs/projects
Products
in the
pipelines
of PDPs
GATB 7
DNDI 6
40
30
MMV 22
20
PPPs
Industry
*
**
10
Industry 21
19
Drugs developed since 1975 to 2000
55
Industry 14Drugs in development from 2000
0
21
63
Drugs developed in past
25 years (1975-2000)*
Drugs registered or in
development since 2000
Some with TDR collaboration
Further SME in-house activity yet to be included
Data from Mary Moran, LSE, Whitehall Presentation, funded by The Wellcome Trust
Priorities: Breakthroughs to increase access
OVERCOME DECLINING MARGINAL RETURNS
ON ADDED INVESTMENTS IN ACCESS
AIDS Care &
HIV Prevention
Marginal
Increase
in
Access
6-9 Months
DOTS Rx
(TB)
Vaccines &
Shorter Rx
Iron Lung
(Polio)
Level of Complexity
Health Expenditures
Product Development Partnerships
Northern headquarters, but global focus
 A mix of public and private contributions
 Follow non-profit business models
 Portfolio approach; expanding pipelines
“Products, Advocacy and Culture Change”
 Priorities are based on health inequities,
social demand, and maturity of the science
 Technological goal would increase access

Tilting health product innovation systems
toward the poor and vulnerable
Push
R&D
Pull
Intellectual
Property
Manufactur
e
Regulatory
Approvals
Goal
Procureme
nt
and Sales
Distribution
of
Essential
New
Products
• R&D funding from governments
• Fast-track regulatory approval vouchers
• Tax breaks for private sector R&D
• Transferable patent extensions
• Double-bottom-line venture capital
• Market analyses & partnering assistance
• Liability protection for manufacturers
• Global procurement / distribution funds
• Patent pooling; open source innovation • Advance Market Commitments (AMCs)
• Univ. humanitarian licensing practices
• Airfare Solidarity Contribution
• Public-private product development partnerships (PDPs)
Tilting innovation in health systems
toward the poor and vulnerable
Resource
Generation
Service
Provision
Health
Information
Distribution
Stewardshi of
Essential
p
New
Products
• Micro-insurance
• Earmarked consumption tax revenues
• Pooled procurement
• Conditional cash transfers
• Social marketing
• ICT for remote expert advice
• Social franchising
• Software to assist in diagnosis and referrals
• Conditional cash transfers
• Health system management changes
Tilting innovation in health systems
toward the poor and vulnerable
Distribution
of
Essential
New
Products
Resource
Generation
Service
Provision
Health
Information
Stewardshi
p
• Micro-insurance
• Earmarked consumption tax revenues
• Pooled procurement
• Conditional cash transfers
• Social marketing
• ICT for remote expert advice
• Social franchising
• Software to assist in diagnosis and referrals
• Conditional cash transfers
• Health system management changes