UNITAID Innovative Financing Mechanism Denis Broun Executive Director

Innovative Financing Mechanism 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 – Co 2 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

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

UNITAID only achieves impact by enable its partners Global Fund, Bilaterals, World Bank, WHO Country governments, NGOs $4 B+ Government, Pharma Companies, Gates Foundation, NGOs $2 B+ ~$300 M Early stage product development Reformulation and adaptation Registration and policy for quality products Global market management Source: Partner survey, February 2011, n=31, UNITAID’s Strategy 2010 -2012 Document, Dec 2009 Delivery of products

Market Impact Framework Case for Intervention Public Health Problem Identified Commodity Access Issue & Market Shortcomings Identified Pathway from market to public health impact Market Intervention -Local/int'l prcm't -price - quality - availability - delivery Public Health Impact

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

Innovative spending Value for Money goes further – User friendly (FDC) Efficacy/Quality/Price – Transaction cost (below 4 per cent) Investing in products of proven public health benefit Value for money • 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

HIV-AIDS Medicines provision to low income countries 10% Branded Medicines Africa TRIPS 2014 ric e n Ge s % g 0 9 dru India TRIPS 2005