UNITAID Innovative Financing Mechanism  Denis Broun Executive Director

 80% of UNITAID funds from Air ticket tax Cameroon Chile France + multi year commitment Republic of Korea Madagascar Mauritius Mali Niger More countries soon  Applied to all fights departing from countries Amount can vary and decided by government »1 euro domestic economy »to 40 euros business international Neutral (all companies) No negative impact Norway – Co2 emission tax  20% multi budgetary contributions UK + multi year commitment Spain Cyprus Brazil + multi year commitment Gates Foundation  Over US$ 2 billion raised since 2006 Innovative Financing Mechanism

The Air Ticket levy  Applied to all fights departing from countries  Amount can vary and decided by government Around $US 1 domestic economy Over $US 40 business international  Neutral (all companies)

=  One adult or 2 child, life saving malaria treatment  One HIV test kit for a pregnant mother  One week HIV treatment for a child  One day of treatment for a patient on second line combination  One week first line TB treatment

Early stage product development Registration and policy for quality products Global market management Reformulation and adaptation Delivery of products UNITAID only achieves impact by enable its partners ~$300M Source: Partner survey, February 2011, n=31, UNITAID’s Strategy Document, Dec 2009 Government, Pharma Companies, Gates Foundation, NGOs $2B+ Global Fund, Bilaterals, World Bank, WHO Country governments, NGOs $4B+

Market Impact Framework Case for InterventionPathway from market to public health impact Public Health Problem Identified Commodity Access Issue & Market Shortcomings Identified Market Intervention Market Impact -Local/int'l prcm't -price - quality - availability - delivery Public Health Impact

UNITAID is one of several market players Coordination is critical: Global Fund (including MDC), PEPFAR, PMI, USAID TB, WHO, Stop TB, UNAIDS, RBM, GDF, etc.

Innovative spending Value for Money  Money goes further –User friendly (FDC) Efficacy/Quality/Price –Transaction cost (below 4 per cent)  Investing in products of proven public health benefit More medicines purchased and delivered = more lives saved  Creating and improving markets Incentives for manufactures to enter or develop market Better prices negotiated – purchases made for many countries high volumes Market impact dimensions vary by product; can include: – price, –quality, –availability and –timely delivery  Positive Externalities Market benefits and results achieved by UNITAID available to all    Value for money 

HIV-AIDS Medicines provision to low income countries 90% Generic drugs 10% Branded Medicines India TRIPS 2005 Africa TRIPS 2014