1. REPURPOSING - SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK IES17206
&
MICHAEL ADAM IES17

2. Solution: Repurposing drugs
Introduction
500 million people globally suffer from one of 7,000 diseases that lack a known, effective treatment
Industry address only 10 to 30 additional diseases each year
 250 to 700 years to find treatments for them all!
Development of a new drug takes $2 billion and years
Solution: Repurposing drugs
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

3. But how to fund this projects?
Drug Repurposing
But how to fund this projects?
SIB
Pay-for-Success ? T
taking existing scientific or medical knowledge and technology that is “approved” for human use in one disease or condition
Applying this knowledge and technology to other diseases or conditions
Less risky way to have the opportunity to treat all disease
Drugs which failed could be reused
It allows innovation from practice
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

4. Repetition: SIB 5 2 1 3 4 GOVERNMENT BOND-ISSUING ORGANISATION
Payment based on defined outcomes
Returns dependent on outcomes
GOVERNMENT
BOND-ISSUING ORGANISATION
INVESTORS
Outcomes
contract 2 1
SERVICE PROVIDERS
Funds
Services
Process 3
Outcomes
measurement
EVALUATOR 4
TARGET POPULATION
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

5. SIBs Today Peterborough Prisoners Program UK 5 million pounds
Newpin Child Care Program
Australia
US $7 million
Central California Asthma Cooperative
USA
US $0.66 million
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

6. Advantages and Criticism of Pay-for-Success
Could mean improved efficiency and effectiveness of governments and non-profits
government agencies will learn to quantify the costs of social issues
nonprofits will learn to quantify the benefit of their interventions
PFS is an important step toward making governments and nonprofits accountable
PFS employs private capital to serve a social need, the money is well spent
appropriate only for a narrow cohort of nonprofits:
they must be able to effectively deliver and measure their social impact
must be able to translate that impact into financial benefits or cost savings that are traceable
inability of these other organizations to raise PFS funding could hamper their ability to deliver social services
evaluating any nonprofit’s impact is both expensive and necessarily complex
high transaction cost of the initial PFS contracts
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

7. Potential of SIBs for Repurposing
Creating an economic engine
Funneling private investment
Financial incentives
Creates a new, potentially profitable market
Investors can take risk in return for associated possible returns
Returns can potentially beat benchmark interest of safe investments by a lot
Social/ethic incentives
Giving back to society
Helping less fortunate people in need  “warm feeling”
Leave a mark / cause lasting impact
Positive image
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

8. Creating an economic engine Funneling private investment
Potential of SIBs
Creating an economic engine
Funneling private investment
Possible synergies
Increasing efficiency and succes rate
Life quality improvements for sick people
Financial and social incentives
Savings for government
Profits for investors
Decreased healthcare cost
More available funding
Many projects/ trials
Increasing number of found cures
WIN-WIN-Situation – that is what for examples Cures Within promotes and wants to realise
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

9. REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
Cures Within Reach
Partners
Global Cures
Findacure
Numbers for Good
Costello Medical
UK’s National Health Service
Bridges Social Impact Bond Fund
US-based global nonprofit organization
Prepares to pilot a first SIB for the repurposing of generic drugs  “CureAccelerator™”
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

10. Pilot SIB - Structure £ £? Sovereign Wealth Funds NHS as “Payer”
Private Investors
Impact Investors (e.g. Bridges Social Impact Bond Fund)
NHS as “Payer”
Clinical trials at disease centers of excellence in the UK
Cures Within Reach
Issues and manages SIB
Selects 10 projects
External evaluator will check the success factors:
Improvements for patients
Savings in health care
Results - Success?
Improvements for patients through repurposed drug?
Savings for NHS?
Sovereign Wealth Funds
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

11. Vision of future Global SIB£?
Private Investors
Impact Investors (e.g. Bridges Social Impact Bond Fund)
NHS as “Payer”
Clinical trials at disease centers of excellence in the UK
Cures Within Reach
Issues and manages SIB
Selects 10 projects
External evaluator will check the success factors:
Improvements for patients
Savings in health care
Results - Success?
Improvements for patients through repurposed drug?
Savings for NHS?
UN / WHO / World Bank supported forming of global fund
International funding from various investor types
Sovereign Wealth Funds
International NGOs specialized on drug repurposing
If the pilot succeedes, they want to expand
Globally spread clinical trials
Linked through open source platform
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

12. Conclusion
If the pilot SIB is successful, it has the potential to eliminate the lack of economic incentive for drug repurposing.
An “economic engine” could fire up and flush lots of funding into the sector, instantiating drug repurposing efforts globally.
An increased rate of finding cures can potentially be life changing for millions of people.
But keep in mind:
Incentivizing the “payer” + sufficient success rate is crucial!
Sovereign Wealth Funds
General Take-Away: Finance is a fundamental lever to change the world – for the better or the worse! And that outcome depends on how the financing is handled.
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

13. REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
Wisdom on Finance
“Finance is a fundamental lever to change the world – for the better or the worse… the outcome depends on how the finance is applied.”
Michael Adam
Sovereign Wealth Funds
General Take-Away: Finance is a fundamental lever to change the world – for the better or the worse! And that outcome depends on how the financing is handled.
REPURPOSING SOCIAL IMPACT BONDS FOR MEDICINE
LAURA HAJEK & MICHAEL ADAM

14. THANK YOU FOR YOUR ATTENTION