What You Should Know:
– The U.S. Department of Health and Human Services (HHS) launches a new $50M venture capital partnership with nonprofit organization Global Health Investment Corporation (GHIC) to accelerate development and commercialization of technologies and medical products needed to respond to or prevent public health emergencies, such as pandemics, and other health security threats
– Through the BARDA Ventures program, the Biomedical Advanced Research and Development Authority (BARDA), part of the HHS Office of the Assistant Secretary for Preparedness and Response, BARDA intends to provide GHIC with a minimum of $50M over five years with potential for up to $500M over 10 years.
– In addition, GHIC will launch a global health security fund with matching capital from other investors. This partnership will allow direct linkage with the investment community and establish sustained and long- term efforts to identify, nurture, and commercialize technologies that aid the U.S. in responding effectively to future health security threats.
– With BARDA Ventures funding, GHIC plans to provide investment to companies developing breakthrough technologies. GHIC will collaborate with companies from around the world to source promising products with the potential to strengthen health security and generate financial returns. GHIC will structure investments with co-funding from additional private investors. As the technologies and companies generate investment returns, proceeds from BARDA Ventures funding will be returned to GHIC for reinvestment and sustainment of BARDA Ventures.
“While we tackle the pandemic’s impact, we’re exploring how the U.S. can better prepare for future public health emergencies, whether it’s the next pandemic or a bioterrorism incident,” said HHS Secretary Xavier Becerra. “The pandemic has demonstrated that the U.S. needs transformative technology that is not only available but also widely accessible. Today we are announcing an innovative, cost-effective approach that puts us on a better path to take on the next public health crisis and improve U.S. health care.”