The $300 Million Business Investment
On Thursday, the investment business, which specializes in global health, announced it is creating a $300 million venture fund designed to improve the global public system. The focus of the company is to accelerate medical innovations on public health issues the business feels have been ignored.
Managing partner at the company, Glenn Rockman, said, “Billions of people around the world live under constant assault from diseases like malaria, shigella, hookworm, tuberculosis, and Lassa fever, yet Wall Street and Silicon Valley typically pay little attention to these widespread challenges.” He added, “...Our new fund will finance cutting-edge research so we are better prepared for threats old and new alike, with the ultimate goal of saving or improving millions of lives by bringing urgently-needed drugs, vaccines, diagnostics, and medical devices to market.”
The business focuses on a handful of key areas for company investments, such as reproductive and sexual health, nutrition, maternal care, newborn and child health challenges, and neglected and high-burden or emerging infectious diseases. Additionally, the investment company has already invested in 14 different businesses developing medical technologies, with the caveat that each business must successfully commercialize the products to be broadly accessible to underserved populations in low or middle-income countries.
Furthermore, this new venture fund from the investment company is backed by some large business investors, including the Bill & Melinda Gates Foundation, the Ford Foundation, the International Finance Foundation, and many more.
Public Health Market
In 2019, the US government spent $3.8 trillion on public health, which accounts for 17.7% of the nation’s gross domestic product (GDP). Even though an enormous amount of spending went toward public health, low-income households are still the most neglected population.
In 2015, approximately 43 million Americans lived in poverty. As a result of their socioeconomic status, these individuals do not have the access to the healthcare that is available for higher-income households. In fact, poverty and low-income status is oftentimes associated with a shorter life expectancy, higher infant mortality rates, and higher death rates. In addition, ethnic and racial minorities experience even more severe health outcomes.
When it comes to global health, the story is very similar. The World Health Organization, or WHO, reported in 2015 that more than 16,000 children under the age of five died every day due to a lack of access to proper medical resources in lower-income family households. Furthermore, non-communicable diseases accounted for 37% of low-income deaths in 2015.
While it is an unfortunate story to tell, it is the reality of the situation. Venture funds from a business like Adjuvant are playing a critical role in the future of public health for low-income families.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.