< PreviousFUNDING 30 Pharma Business International www.pbiforum.net FUTURE Funding the 30-33.qxp_Layout 1 07/10/2019 12:09 Page 1Pharma Business International 31 www.pbiforum.net FUNDING © Shutterstock /Volodymyr Maksymchuk Recently, how pharmaceutical companies and research organisations are funded has received significant attention. Critiques over the funding of research and development have included concerns over the amount pharmaceutical firms invest in patient organisations, with information published in the BMJ highlighting that between 2012 and 2016 in the UK, more than £57m was donated by the drug industry. Arguments have stated that this funding prioritises commercially high-profile illnesses such as cancer and indicate concern over how pharma investment in certain conditions can alter research to benefit companies financially, as well as influence NHS drug decision makers. Further, disdain has been shown towards pharmaceutical companies that receive support essentially by the public, through grants and charities, that subsequently charge high amounts for products. In fact the age-old question over drug pricing led to UK Labour party leader Jeremy Corbyn, in September, announcing intentions to establish a state-funded generic drug manufacturer, use compulsory licensing to secure generic versions of patented medicines and set requirements for private companies to keep prices affordable as a condition for receiving public research funding. Responding, Dr Richard Torbett, Executive Director of Commercial Policy at the Association of the British Pharmaceutical Industry (ABPI), said: “‘Compulsory licensing’ – the seizure of new research – is not the answer. It would completely undermine the system for developing new medicines. It would send a hugely negative signal to British scientists and would discourage research.” As demand for new treatments continues to grow, a changing environment where tighter laws and restrictions are making the bringing of, say, a drug through development, trials and to approval more difficult and costly. There are a plethora of ways in which capital can be raised to fund essential research and development, whether it is a research firm, large pharmaceutical company or smaller scale developer raising funds. The pharmaceutical industry itself is clearly a major contributor to the development and research of treatments. In the UK, the industry invests significantly. According to new figures from ABPI, the industry spent £377.3m on collaborations relating to R&D activities during 2018, growing from £370.9m in 2017. Drug companies fund a large amount cancer research specifically, which as previously mentioned is currently causing controversy, and while companies may run their own trails to assess drugs they have developed, they may also give grants or supply their drugs free to other 32 Á There are several means through which to raise the capital vital for pharma firms and research organisations, from charities and foundations to government bodies and investment funds. FUNDING 32 Pharma Business International www.pbiforum.net organisations running trials. Corporate venture capital, where pharma firms invest their own funds into start-ups, is a key source for innovation finance, and globally over $34bn has been invested by pharmaceutical corporate equity investors. Governments are often a key funding source, for instance the United States’ National Institutes of Health (NIH) acts as the largest public funder of biomedical research in the world investing over $32bn a year. The NIH offers funding for grants, contracts and programs that help repay loans for researchers. Recently the NIH, through its National Institute on Aging, awarded a $9m grant over four years to T3D Therapeutics, to help fund a phase 2 clinical study regarding Alzheimer’s disease treatment. Meanwhile, in the UK, the government’s Innovate UK body has been pinpointed as a key funding source, with for instance IGEM Therapeutics, an immune- oncology company, securing a £750k grant from the Innovate UK Biomedical Catalyst Primer Award in April – its second following a £1.45m grant in 2018. The Biomedical Catalyst, which funds businesses and researchers to test and develop innovative health and care projects, typically runs multiple times a year. Since 2012 it has awarded over £250m in funding to more than 300 projects. The funding has been matched by £150m in private finance and many of its receivers have witnessed global success. Covering Europe, Horizon 2020 is the largest EU Research and Innovation programme with almost £80bn of funding © Shutterstock /Marian WeyoPharma Business International 33 www.pbiforum.net FUNDING © Shutterstock /Africa Studio available over seven years and promises “world-firsts by taking great ideas from the lab to market.” It has supported developments such as advanced vaccines for Ebola. Due to end next year, its successor will be Horizon Europe. Bringing further potential investment to the European pharma industry, in September, the European Investment Fund (EIF) and EIT Health revealed a collaboration to set up a new Venture Centre of Excellence. The collaboration will see EIF bring forth its potential investors, with its network of venture capital funds and its portfolio companies, and EIT Health share its network of health research institutions and pharma enterprises and their respective deal flow of start-ups. The cooperation is expected to attract more venture capital to the industry, enhance networking, market knowledge, strategic collaborations and the sharing of investment opportunities. There are also several alliances across the globe, bringing common sources of funding together. CEPI for example is a collaboration of governments, foundations, UN agencies and private sector organisations looking to help the development of vaccines against infectious diseases. In January, CEPI made a call for proposals for development of vaccines against Rift Valley fever and Chikungunya viruses, and since then over $66m has been invested in two Chikungunya and two RVF vaccine candidates. Another public/private partnership worth considering is the Innovative Medicines Initiative, which is jointly funded by the European Union, and the European pharmaceutical industry. Funding recipients vary from universities to mid- sized companies. Further, various investment funds are seeking life sciences opportunities. For instance, looking to mainly support late-stage innovation, The Global Health Investment Fund is providing financing – from mezzanine debt to preferred equity – to spur the development of drugs, vaccines, diagnostics and other interventions against diseases primarily affecting low- middle income countries. Charities are also important to acknowledge when considering avenues for funding. Cancer Research UK, for instance, is the single largest funder of cancer research in the UK. Focusing on the treatment of specific cancers, charities across the world have been paramount. For example, The Leukemia and Lymphoma Society, doubled its funding of research focused on childhood blood cancers in 2019, adding twenty new research programs worth $13.8m to its research portfolio. With these grants it has committed over $25m over a five-year period to change how children with blood cancers are treated.Thursday 24 – Saturday 26 October Pharmaist 2019 Istanbul Expo Centre, Turkey This exhibition is a platform for the pharmaceutical industry to purchase chemicals, raw materials, ingredients and technologies in Turkey. Here the latest products and technologies will be showcases and vital contacts can be forged. For more information, visit www.pharmaist.net. Monday 4 – Tuesday 5 November Digital Therapeutics Strategic Partnership Summit Sofitel Los Angeles, Beverly Hills This summit is designed to be a meeting of the stakeholders, featuring real case studies and lessons learned to foster collaboration and ensure a common goal is defined. The goal is to provide tangible resources while discussing standards for regulatory pathways, the benefits of strategic partnerships, and the importance of data sharing and governance. To find out more, visit www.exlevents.com/digital-therapeutics- summit/registration. Pharma EVENTS © Shutterstock / Billion Photos 34 Pharma Business International www.pbiforum.net © Monkey Business Images / Shutterstock.com Monday 18 – Tuesday 19 November Pharma Integrates Leonardo Royal Hotel London Tower Bridge Pharma Integrates is a unique event brining together key industry leaders across the pharmaceutical pipeline to share insights and Tuesday 5 – Thursday 7 November CPhI Worldwide 2019 Messe Frankfurt, Germany The world’s largest pharmaceutical exhibition, CPhI Worldwide houses six zones representing each stage of the pharmaceutical supply chain – from APIs, machinery and packaging, to outsourcing and biopharmaceuticals. Uniting over 45,000 visiting attendees and 2,500 international exhibitors, CPhI Worldwide is the place to network and source cost-effective pharma solutions from all over the world. To find out more, visit www.cphi.com/europe. Monday 11 – Tuesday 12 November Biomanufacturing World Summit 2019 Hilton La Jolla Torrey Pines, California The Biomanufacturing World Summit brings together the who’s who of pharmaceutical executives, cutting-edge technology providers and media partners for North America’s premier biologics event. For more information, visit www.biomanworld.com. Wednesday 30 – Thursday 31 October Lab Innovations 2019 NEC Birmingham Lab Innovations is the UK’s largest annual trade exhibition dedication to the entire laboratory industry, uniting more than 3,000 decision makers with over 150 laboratory suppliers and manufacturers across all sectors. For more information, visit www.easyfairs.com/lab-innovations- 2019/lab-innovations-2019.create debate on crucial topics that influence the future of patient outcomes. To find out more, visit www.lifescienceintegrates.com. Monday 2 – Tuesday 3 December Pharma Expo 2019 New York Bringing together pharma industries, researchers, drug makers, healthcare professionals and entrepreneurs, this expo will focus on drug discovery, delivery and design as well as manufacturing and pharmacovigilance, among other topics. It offers a valuable networking opportunity and insight into the latest industry trends. Find out more by visiting www.lexisconferences.com/pharmaceuticalsciences. Wednesday 15 – Thursday 16 January 2020 Pre-Filled Syringes 2020 Copthorne Tara Hotel, London Kensington As Europe’s leading pre-filled syringes conference, this important event will assess innovations in design controls and applications, enhancement of human factors and optimising formulation and containment. It also offers peer- to-peer networking with major industry players. To find out more, email events@smi-online.co.uk. www.pbiforum.netPharma Business International 35 © Alastair Wallace / Shutterstock.com Wednesday 27 – Thursday 28 November Digital Health World Congress Kensington Conference and Event Centre, London Digital Health World Congress features the future of digital health with AI and blockchain, the impact of genomics on global healthcare, how AI- docs will transform patient care globally, how digital pharma will create new markets, exploring personalised medicine market with AI, digital health ecosystem strategies and plenty more besides. To find out more, visit www.digitalhealthcareworldcongress.com. Tuesday 5 – Wednesday 6 November Drug Discovery 2019 ACC Liverpool, UK Drug Discovery is now in its 13th year and, for 2019, it will focus on ‘A Look Back to the Future’. This focus will include plenary introductions assessing how we got to where we are now and setting the challenges for discovering the drugs of the future. These will be followed by cutting-edge talks and examples of new directions in drug discovery. For more information, visit www.elrig.org. FEATURES Depression exposé Precision medicine Paediatric therapies Oncology Partnerships Purchasing Next issue: Deadline - 20th November 2019 REGULARS News Events M&A Round-up Eye on approvals Visit us at www.pbiforum.net where you’ll find the latest news as it breaks – and why not subscribe to our newsletters so you can have the latest news emailed to your inbox, in between printed issues? @pbiforumwww.pbiforum.net company/po-business-internationalNext >