ICAEW Switzerland - Impact Investing event - FIND Louisa Chaubert
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1. Product development partnerships (PDPs) bridge the gap between industry and patients to develop diagnostic solutions for diseases that lack profitable treatments by collaborating with public and private partners. 2. 21 of the 28 diseases that primarily impact developing countries lack essential diagnostic tools, and companies have little incentive to invest in research and development without potential for profits. 3. PDPs can accelerate the development and access to diagnostics more quickly and cost-effectively than either the public or private sector alone by leveraging contributions from various partners.
ICAEW Switzerland - Impact Investing event - FIND Louisa Chaubert
- 1. Product Development Partnerships: Bridging gap between industry and patients to achieve lasting Impact : https://www.finddx.org/ Louisa Chaubert, Finance Director, FIND
- 2. 21 out of 28 diseases of poverty lack essential diagnostic solutions The right dx needed must be easy to use and affordable Lack of potential for profits acts as disincentives for companies to invest in R&D (same problem for treatments and vaccines) Patients struggle to get quality diagnosis in LMICs
- 3. Overcoming challenges on the way to essential diagnostics Few tests in development or don’t make it to market Slow LMIC market penetration Impact stifled… • Gaps in science & knowledge sharing • Limited understanding of needs / priorities • Low market incentives given high development risks • Lack of supporting infrastructure for innovators • Fragmented regulatory and policy pathways • Unclear financing/ procurement pathways • Complex delivery channels • Weak health and lab systems • Linkage of testing and care • Logistics, support and quality use Prioritization of diagnostics low • Limited understanding of diagnostics value and thus minimal investment • Since 2007, R&D funding for diagnostics has stagnated at 3-4% 3 1 2 3 4
- 4. 4 As a not-for-profit Product Development Partnership, we collaborate with public and private partners to deliver dx solutions • PDPs are a proven model to drive research for neglected diseases • PDPs have accelerated promising products more quickly and cost- effectively than either public or private sector entities acting alone PDP model to drive Impact Governments Research institutes & NGOs DonorsAcademia Pharma/ biotech Companies Patients FIND is one of 17 PDPs working on improving global health
- 5. • 190+ people working toward a world where diagnosis guides the way to health for all people • 210+ Partnerships with industry, research/academia, government agencies and NGOs • Our mission: Turning complex diagnostic challenges into simple, holistic solutions to overcome diseases of poverty and transform lives FIND at a glance Easy-to-use diagnostic Connectivity & IT Policy & global implementation package Financing mechanism to buy dx and finance R&D Quality assurance Impact measurement Support & supply chain Holistic diagnostic solutions
- 6. FIND’s portfolio: Turning science into products and solutions to improve patient lives Catalyse Development Guide Use and Policy Accelerating Access Shape the Agenda SCIENCE PRODUCTS SOLUTIONS PATIENTS E-DiagnosticsTuberculosis NTDs Hepatitis C and HIVAMR / Outbreak Malaria
- 7. Funding sources 7 Restricted grants; 67% Flexible funding; 29% Fee for service; 3% Other; 1% BMGF; 18% Governments; 36% UNITAID; 23% Global Fund, 13% Industry, 2% Botnar, 2% Other; 5%
- 8. Impact investing: limited opportunities for PDPs Suitability of Impact Investment for PDPs Limited opportunities to attract impact investment capital Agility of PDPs to attract different sources or funding / stakeholders Clear opportunity for investment with clear market pathway can attract impact investors Real investment considerations need development and test of the approach Lack of specialized knowledge of investment in R&D for global health, hinders investments Way forward Clarify the investment case for potential “investors”, An investor needs to take the plunge in the field of R&D for global health to set a precedent. Ensure alignment on investment terms (investor and PDP; role, IP, investment terms) Build PDP organizational consensus and buy-in early in the investment design process to make negotiations more efficient.
- 9. How PDPs generate value for money Leveraging contributions from companies and academic partners (contributions in kind – staff, supplies etc) Costs are lower than in industry (low indirect costs, salaries lower than in pharma industry) Academia good at basic science but not good at tech transfer to industry (PDPs act as match maker between academia and companies) Most PDPs have an open access policy which ensures access to markets we are interested in PDPs are not driven by profit so are motivated to push pricing down for end user Motivation for governments is that by building the health of populations you raise productivity and hence global revenues.
- 10. Similarities between private and not for profit sectors Time reporting to enable staff costs to be allocated to grants Tight budgetary control and regular forecasting Strong ICS required Risk management Forex and treasury management Governance via board and committees
- 11. Differences between private and not for profit sectors Shareholders are our donors – looking for impact rather than profits Complex financial tracking system required – by grant, project etc varying start and end dates, reporting in different currencies. Funding is often time restricted and based upon financial reports or budgets. Tax exemption Grant audits in addition to statutory audits Legal structure – BoD work as volunteers but are still responsible for the organization
- 12. 1 Innovative diagnostics matter – but only if they reach the people who need them.