With a $23 billion portfolio, the Global Fund spends almost one of every three aid dollars on health products for HIV/AIDS, malaria, and tuberculosis drugs and diagnostics. In the current global climate of economic uncertainty and constrained resources, getting the most impact out of every dollar spent is paramount – allowing the Global Fund and the global community to save more lives with existing resources.
In 2011, the Global Fund sought ways to leverage its large-scale purchasing power to improve global market dynamics for health products across their $7B health portfolio. Better market dynamics can ensure the hundreds of millions of individuals supported by the Global Fund secure access to affordable, high-quality products without fear of sudden shortages.
“R4D helped fundamentally reshape the way the Global Fund approaches its more than $7B in health product investments. Through their work, the Global Fund incubated and launched an innovative Market-shaping Strategy that will save an initial $500 million, enabling the Global Fund to reach many more patients.
– Oliver Sabot, Global Fund Market Dynamics and Commodities Committee (MDC) and, EVP Clinton Health Access Initiative (CHAI)
- Market-shaping strategy development: In February 2011, the Global Fund’s Market Dynamics Committee (MDC) commissioned R4D to develop concrete strategies which optimized ‘value for money’ across its health commodities portfolio, with a particular focus on HIV/AIDS drugs. Working over a two-month timeline, R4D rapidly assembled a team, led by Managing Director Kanika Bahl, of leading business strategists, market dynamics experts, and pharmaceutical experts. The team undertook rigorous strategy development, with close engagement with 59 individuals working across the global marketplace including drug manufacturers; regulators; country purchasers; and major financiers.
- Incubating new approaches: The team developed groundbreaking approaches for the Global Fund to ensure countries purchase the most cost-effective high-quality products, accelerate introduction of new HIV/AIDS drugs, and prevent risk of supply disruptions of HIV/AIDS drugs for children.
- Global Fund adoption: The resultant recommendations were presented and approved by the Global Fund MDC and Board which included key actors in the health arena, including country representatives from across Africa; donor representatives from USAID, the Gates Foundation, UNITAID and DFID; and key technical agencies such as UNICEF, the Clinton Foundation, and others.