The medical countermeasure review also found “start up” companies have difficulty finding investors willing to support development of medical countermeasures. To help bridge this gap, the HHS is exploring whether the government could establish a 501(c)(3) independent entity to assist our nation in developing a more robust and sustainable business sector. This sector would create a sustainable pipeline for new medical countermeasures for public health emergency threats
By repositioning the U.S. Government as a strategic partner and investor, BARDA through the not-for-profit strategic investor entity could provide meaningful fi¬nancial, business, and management assistance to private sector partners to develop the medical countermeasures the nation needs.
This strategic investor entity would spur innovation and provide the kinds of business and financial services and support that venture capital firms typically provide. At the same time, the strategic investor entity would be helping to mitigate the financial risk that biotechnology firms often face which stifles innovation.
The entity would support companies that have technologies that could address commercial and government needs, but which might otherwise lack the necessary financial capital or business acumen to develop a commercially viable, approved product. This approach also promotes the transition of medical countermeasure development and procurement from a “one bug, one drug” approach to an enterprise that can respond to any threat at any time. The strategic investor entity would work in concert with the Project BioShield Program, not replace it.