BioCentury
ARTICLE | Company News

GlaxoSmithKline, Merck, Pfizer, Bill & Melinda Gates Foundation, Children's Investment Fund Foundation, German Ministry for Economic Cooperation and Development

September 30, 2013 7:00 AM UTC

JPMorgan and the Gates Foundation formed the Global Health Investment Fund (GHIF) to support late stage development of technologies against diseases that disproportionately burden low-income countries. With $94 million in committed capital from individual and institutional investors, the fund will invest in technologies with public health applications in developed and emerging markets. Potential investments include treatments and vaccines against cholera, diarrhea, HIV, malaria and tuberculosis, as well as products for improving global nutrition and family planning.

Investors will receive a royalty stream from products marketed at full price in the U.S., EU and Asia, allowing the products to be priced lower in developing countries. Additionally, 20% of profits generated will go to the newly established not-for-profit Global Health Investment Corp. to act as a permanent funding vehicle for GHIF. The Gates Foundation and SIDA have committed to provide investors with a loss protection of up to 60% of the fund's capital. Under the guarantee, the first loss up to 20% of invested capital is fully covered with investors covering 50% of any subsequent losses...