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

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

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

IFF Immunisation Pilot to test the approach Likely launch in 4 th 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

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

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)

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

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

DFID-Mixed bag of approaches More ODA-140% increase from 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

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