HHS Announces Venture Capital Partnership to Combat Future Pandemics and Health Emergencies
This week, the U.S. Department of Health and Human Services (HHS) announced a new type of public-private partnership that enables investments using venture capital practices. Through the BARDA Ventures program, the Biomedical Advance Research and Development Authority (BARDA) will partner with the nonprofit organization Global Health Investment Corporation (GHIC) to accelerate the development and commercialization of technologies and medical products needed to respond to or prevent public health emergencies and other health security needs.
Through the partnership, BARDA intends to provide GHIC with a minimum of $50 million over five years with potential for up to $500 million over 10 years. GHIC will launch a global health security fund with matching capital from other investors, allowing direct linkage with the investment community and establishing sustained and long-term efforts to identify, nurture, and commercialize technologies that will aid the U.S. in effectively responding to future health security threats, such as pandemics.
With BARDA Ventures funding, GHIC will provide investment to companies developing breakthrough technologies. GHIC will collaborate with countries throughout 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 investments, and investment return proceeds will be returned to GHIC for reinvestment and sustainment of BARDA Ventures.
Additional information on this new type of partnership for HHS is available here.