1. Summary of 3rd CEWG meeting by Chair and Vice-Chair
Open Session
CEWG on R&D Financing and Coordination
November 18, 2011

2. Administrative
Two members were unable to attend the meeting for personal reasons (Dr Hossein Malekafzali from Iran and Mr Shozo Uemura from Japan)
No new disclosures or material changes in conflict of interest

3. Prior to the meeting
WHO proactively approached each region for consultations. The following consultations were held:
AFRO – August 27th
EURO – October 5th (a special session during an international conference in Barcelona)
PAHO – November 7th (a virtual consultation)
SEARO – October 7th
WPRO – October 13th
Minutes are available on the website.

4. Prior to the meeting (cont.)
A small, working meeting took place September in Oslo to look at proposals that required further analysis. Six members were invited (one from each region), however, AFRO representative could not attend:
The Chair (EURO, Norway)
The Vice Chair (PAHO, Brazil)
EMRO rapporteur (Lebanon)
SEARO rapporteur (India)
WPRO rapporteur (Philippines)

5. Prior to the meeting (cont.)
First drafts of the report chapters including revised assessments were prepared and distributed to CEWG members.

6. At the meeting
The drafts of the report chapters and assessments were reviewed in detail.
WHO Legal Counsel presented the different mechanisms for making normative instruments under the WHO constitution: Articles 19 (conventions), 21 (regulations) and 23 (recommendations).
The Framework Convention for Tobacco Control was presented.

7. Proposals meeting CEWG criteria
A globally binding instrument
Direct grants to companies in developing countries
Equitable licensing
Patent pools
Pooled funds
Precompetitive R&D platforms / Open source and access
Prizes

8. Proposals meeting CEWG criteria less well or not directly related to R&D
Green intellectual property
Health Impact Fund
Orphan drug legislation
Priority review voucher
Purchase or procurement agreements
Tax breaks for companies
Transferable IP rights
Regulatory harmonization
Removal of data exclusivity

9. Recommendations Open knowledge innovation
Equitable licensing
Patent pools
Precompetitive R&D platforms / Open source and access
Prizes, in particular milestone prizes
Direct grants to companies in developing countries
Pooled funding
Convention
“A binding global instrument for R&D and innovation for health”
Coordination mechanisms
Strengthening capacity in and technology transfer to developing countries

10. Binding global instrument (Convention)
Because current funding is insufficient and global coordination is necessary to find solutions to the global disease burden,
CEWG recommends a binding convention (under article 19 of WHO constitution) for R&D related to Type II and III diseases and the specific R&D needs of developing countries in relation to Type I diseases.

11. Principles behind a binding instrument
Open knowledge innovation, de-linkage, competition, access and strengthening innovative capacity in developing countries
Global coordination mechanism
Call for increased public investment
Mechanism for redistributing resources
Pooling of funds to meet these aims
Not a replacement for the existing IPR system, instead supplements where the current system does not function

12. Preliminary financing recommendations – Government commitments
Total public funding of health R&D
(2% of health budget)*
To be defined as proportion of GDP
Public funding of R&D on technologies for type III, II + DC I
Public funding to global pool
Proportion of health development aid (ODA) to health R&D
5%*
*Commission on Health Research for Development 1990

13. Financing
Governments should consider different forms of revenue generation to meet the proposed funding commitments.
Taxes on activities harmful to populations’ health (e.g. tobacco, alcohol, etc.) may be appropriate and earmarked for health R&D.
If member states introduce any international indirect tax like the financial transaction tax, a portion of the revenues should be dedicated to global health R&D.
Voluntary private funding to global pooled funding mechanism

14. Coordination
WHO should play a central role in global coordination and management
Advisory function: Utilize ACHR and regional ACHR
Sharing/learning: Convene the R&D funders (e.g. HIROS) in multi-stakeholder forums for knowledge-sharing and coordination
Monitoring & evaluation: «Global Health R&D Observatory» with regional functions
Need for regional and national coordination
Utilize existing structures/institutions where appropriate, including with regard to global pooled funding mechanism

15. Recommendation summary
Convention
Open knowledge innovation
Direct grants to companies in developing countries
Pooled funding
Coordination
Strengthening capacity in and technology transfer to developing countries

16. Next steps
Complete the analytical work as a means of building a platform for the commencement of formal negotiations
Finalize the report (by Q1 2012)
Propose the establishment of an intergovernmental body and a technical committee to specify the content and begin formal negotiations
WHA discussions and resolution

17. Questions?