GLOBAL HEALTH R&D FINANCING: THE EXPERIENCE OF NON-PROFIT PRODUCT DEVELOPMENT ORGANIZATIONS Claire Wingfield November 1, 2013 The economic urgency and the pathway to eliminate TB Paris, France

About the Global Health Technologies Coalition Product developers… Think tanks… Advocacy organizations… Other Implementing organizations…

GHTC paper series objectives The series will inform: Discussions aimed at improving the coordination and financing of health R&D addressing the needs of LMICs The implementation of activities as called for in a resolution passed at the 66 th World Health Assembly.

Non-profit product developers’ role in R&D for low and middle-income countries Nongovernmental organizations that partner with the public, philanthropic/not-for-profit, and private sectors to develop technologies— diagnostics, drugs, devices, vaccines, and microbicides—targeted at poverty-related and neglected diseases and conditions.

Challenges and impacts Donor shifts from unrestricted funding for a portfolio to more narrowly restricted project- or product- specific funding Organizations have less flexibility to shift funds to more promising projects. Funding—not science—may drive decision making. Product developers find it difficult to maintain a portfolio of products at different stages of development. Activities are scaled back as overhead funds shrink.

Challenges and impacts Small number of major funders Competition for smaller amounts of money increases as R&D costs rise and donor funds decrease. NPPD’s vulnerability to shifting funder priorities increases.

Challenges and impacts Misalignment of funder requirements Varying length and timing of donor cycles create significant funding gaps and jeopardize ongoing projects. Discordant donor requirements increase burden on and need for specialization of grants management.

Challenges and impacts Limited NPPD capacity to identify, cultivate and sustain funding Increased staff time and resources must be dedicated to resource mobilization and grants management. NPPDs require different business infrastructure and staffing configurations to pursue and manage new funding sources.

Recommended funding criteria Support a portfolio of products at different stages of development. Provide sustainable funding commitments. Support core activities. Incentivize new investment.

Thank you Claire Wingfield On behalf of Kaitlin Christenson