Important gains have been made in the global health area over the past decades. Human lives have been saved and it has translated into economic prosperity; healthy people make for healthy workers and family providers. Still, much remains in order to reach UN sustainable development goal #3 ‘good health and wellbeing'. In addition to infectious diseases, lifestyle related diseases weigh heavy on Low and Middle Income Countries (LMIC). The mismatch between large unmet medical needs and the number of available treatment options is nothing short of a textbook definition of market failure. The big pharmaceutical and medical device companies have built their businesses around premium priced therapies, mainly targeting high income countries. As LMIC catch up and soon will represent half the global economy, there is reason to challenge that model.
Meanwhile, great strides are being made in other medical areas such as cancer and rare diseases. Venture Capital (VC) has played an instrumental role in this innovation spur by funding unproven high risk technologies and demonstrating their clinical benefits in patients. It begs the question of what VC can achieve in global health? This whitepaper addresses that question from an investor’s perspective, focusing on the why and how it can be done. It outlines a global health VC toolbox – adjustments to traditional VC – that can be leveraged when moving from premium pricing to cost effective models. Hopefully, it can inspire more investors to bring global health into the spotlight.
In December 2019, we co-organized a panel discussion together with Friends of the Global Fund. The event was the first of its kind in the Nordics; bringing together academia, NGOs, life science companies, investors, large scale capital, and government for a discussion on innovative financing for Sustainable Development Goal 3 - good health and well-being for all.
The whitepaper is for informational purposes only and should not be considered as
investment or other professional advice. Information has been obtained from
sources believed to be reliable but the author does not warrant its
completeness or accuracy. All rights reserved at © emerging health ventures, 2019