The Commission on Financing a Public Benefit Biotech Industry

The cost of capital determines the output of our industry

Developing new medicines and diagnostics is difficult, expensive and takes a long time.

This is why biotech companies are financed with high risk/high reward investors such as venture capital early on, followed by private equity and ultimately public markets (where 65-90% of profit is spent servicing shareholders).

Thus, capital sources determine which medicines will be produced: those that meet the demand for highest returns/profits

The output: We only have treatments for 10% of human diseases.

Shouldn’t there be more treatments for more diseases? Yes, how do we make it happen?

Public benefits vs. shareholder benefits

If we want companies that are aligned to public benefits vs. shareholder benefits, we need a financing system that supports more affordable medicines.

Companies need the latitude to invest in therapeutic, preventative, and diagnostic products at a sustainable cost to our healthcare system while still meeting shareholder expectations. Companies need:

• Investments for longer term (10+ years), with regularly distributed, modest “bond-like” returns
• A continuum of capital structures/vehicles that can sustain companies from early to mature stages

Want to contribute to this exciting innovation in investing? Yes, I want to contribute!

Financing is changing to address the climate crisis, it’s time for financing to change to address the medical crisis

If climate change is transforming today’s financial markets, why isn’t financial innovation meeting our needs for diversified, affordable medicines?

Just as Blackrock can implement new, sweeping, pro-environment policies in which “sustainability is the new standard for investing”, so can our industry establish investment priorities for global, sustainable, affordable pharmaceuticals.

Process, steps, outcomes:

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Help shape the new financial curve

The Commission’s work will be the foundation of the next generation of biotechnology companies who could save our healthcare economy while delivering more medicines for all of us.

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