UNITAID Innovative Financing Mechanism

Denis BrounExecutive Director

80% of UNITAID funds from Air ticket tax• Cameroon• Chile • France + multi year commitment• Republic of Korea• Madagascar• Mauritius• Mali• Niger• More countries soon

Applied to all fights departing from countries • Amount can vary and decided by government

» 1 euro domestic economy » to 40 euros business international

• Neutral (all companies) No negative impact

• Norway – Co2 emission tax

20% multi budgetary contributions• UK + multi year commitment• Spain• Cyprus• Brazil + multi year commitment• Gates Foundation

Over US$ 2 billion raised since 2006

Innovative Financing Mechanism

The Air Ticket levy

Applied to all fights departing from countries

Amount can vary and decided by government• Around $US 1 domestic economy • Over $US 40 business international

Neutral (all companies)

= One adult or 2 child, life saving malaria

treatment One HIV test kit for a pregnant mother One week HIV treatment for a child One day of treatment for a patient on second

line combination One week first line TB treatment

Early stage product

development

Registration and policy for quality products

Global market

management

Reformulation and adaptation Delivery of

products

UNITAID only achieves impact by enable its partners

~$300M

Source: Partner survey, February 2011, n=31, UNITAID’s Strategy 2010-2012 Document, Dec 2009

Government, Pharma Companies, Gates Foundation, NGOs

$2B+

Global Fund, Bilaterals, World Bank, WHO

Country governments, NGOs$4B+

Market Impact Framework

Case for Intervention Pathway from market to public health impact

Public Health

ProblemIdentified

CommodityAccess

Issue&

Market Shortcomings

Identified

MarketIntervention

MarketImpact

-Local/int'l prcm't -price

- quality- availability

- delivery

PublicHealthImpact

UNITAID is one of several market playersCoordination is critical: Global Fund (including MDC), PEPFAR, PMI, USAID TB, WHO, Stop TB, UNAIDS, RBM, GDF, etc.

Demand(Buyers

and consumers)

Demand(Buyers

and consumers)

Non-UNITAID Interventions

UNITAIDInterventions

Market Shortcomings

Market Dynamics

Market Shortcomings

Supply(Sellers) Supply

(Sellers)

Policy, regulation, economics, guidelines, innovation, politics

www.unitaid.eu

Innovative spendingValue for Money

Money goes further– User friendly (FDC) Efficacy/Quality/Price– Transaction cost (below 4 per cent)

Investing in products of proven public health benefit• More medicines purchased and delivered

= more lives saved Creating and improving markets

• Incentives for manufactures to enter or develop market• Better prices negotiated – purchases made for many countries

high volumes• Market impact dimensions vary by product; can include:

– price, – quality, – availability and – timely delivery

Positive Externalities • Market benefits and results achieved by UNITAID available to all

Value for money

HIV-AIDS Medicines provision to low income countries

90% Generic

drugs

10% Branded Medicines

IndiaTRIPS2005

AfricaTRIPS

2014