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The G8 & R&D for neglected diseases

The G8 & R&D for neglected diseases. Stewart Tyson DFID. International Financing Facility (IFF) IFF-Immunization French tax proposals What the G8 can do to support R&D.

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The G8 & R&D for neglected diseases

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  1. The G8 & R&D for neglected diseases Stewart Tyson DFID

  2. International Financing Facility (IFF) • IFF-Immunization • French tax proposals • What the G8 can do to support R&D

  3. Millennium Project, Africa Commission, Financing for development conference, G8 preparations all highlight need for additional ODA (and action on debt relief and trade) • Need to look for innovative means to raise serious money

  4. The IFF • ‘The big mortgage’ • OECD countries issue bonds to raise money on capital markets –as for large infrastructure projects • Frontload spend to 2015 • OECD countries pay back over long term using future aid budgets • Interest in Europe, none in US • Aim to raise additional $50bn annually

  5. IFF Immunisation • Pilot to test the approach • Likely launch in 4th quarter 2005 • UK, France, Sweden confirmed, also interest in Germany, Italy, Spain, Belgium • UK will fund one third of total • Aim $4bn disbursement over 10 years –will double current spend on immunisation • Pay back $7bn over 20 years –never more than 1% of future aid flows • Prevent 5m child deaths to 2015 • Funds channelled through existing structures

  6. Back to Big IFF • Likely to move forward with a coalition of the willing • Aim $50 bn additional ODA but more likely $15bn annually • Use existing disbursement channels • Big pot of money rather than separate projects such as the IFFIm

  7. Landau proposals • Tobin (currency transfer) tax –little support • Aviation tax –fuel/ticket-support in Europe work underway to look at practicalities and return (likely hundreds of millions euro)

  8. G8 messages • Highlight importance of health- development link (cf CMH calls -$3 bn call for R&D) • Restate commitment to MDGs and need to address financing gap (recent EU commitment to more ODA) • Increase direct investment in R&D for vaccines and drugs • Provide market incentives • ‘HIV, malaria, TB, other parasitic and neglected diseases’ • Invest in strengthening health systems

  9. Looking beyond the G8 • Need new drugs, vaccines, diagnostics • Increase access to and use of existing drugs (ACT, paediatric formulations) • Aim universal access to essential health services • Send signal of predictable market (GAVI-HiB) • Increased direct investment in priority R&D • Use range of approaches(tax breaks on research /sales, APC, prize schemes) • PPP

  10. DFID-Mixed bag of approaches • More ODA-140% increase from 1997-2007 • More research spend (£25m 04/05- £51m 07/08 • Support PPPs (IAVI, MMV, Microbicides but no TB or most neglected diseases as yet) • Better coordination –Global AIDS Vaccine Enterprise (but still at early stage) • Interest in APCs –G7 working group • Vaccine research tax credit • IFF

  11. Challenges • Increased developing country engagement in research • Success of R&D PPPs –increasing $ needs as move to late stage research • Looking beyond HIV/TB/Malaria • Taking forward new models of collaboration and funding • Making health systems work

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