The EU is the 2nd-largest provider of global health R&D funding

In 2015, the European Union became the second-largest funder of global health research and development (R&D) focused on poverty-related and neglected diseases (PRNDs), tuberculosis (TB), malaria, and HIV/AIDS (referred to as ‘global health R&D’ in this section). The EU institutions contributed US$171 million to global health R&D in 2015 (7% of total R&D funding in 2015), increasing by 20% from 2014 and almost doubling since 2012. 1 The majority of funding in 2015 went to academic and research institutions and approximately 23% to the European and Developing Countries Clinical Trials Partnership (EDCTP). In 2015 the EU overtook the UK in global health R&D, following only the US (which funds more than two-thirds of total public R&D investment).

The Commission reported US$484 million in commitment to global health R&D for 2014 to 2015. This figure refers to commitments rather than actual disbursements, which may be distributed across several years. Commitments focused on TB (34%), Ebola (29%), and HIV/AIDS (21%) and include a range of activities that go beyond laboratory R&D and development of new medical tools, such as building capacities in different regions to conduct research, as was the case during the response to the Ebola epidemic. It is worth noting that the Commission takes a broad approach to account for global health R&D funding, while G-FINDER data strictly focuses on actual expenditure for product development R&D only. Given the Commission and G-FINDER’s contrasting approaches, G-FINDER’s figure for EU investments into global health R&D is much smaller.

The European Commission's DG Research and Innovation has three main programs for global health R&D

The Directorate-General for Research and Innovation defines and implements the European Research and Innovation policy, which includes global health R&D. The European Union funds research and innovation through so-called framework programs that cover six years. ‘Horizon 2020’, the EU’s eighth Framework Programme for Research and Innovation, was launched in 2014. It has a total budget of US$95 billion for the period 2014-2020, and focuses on three key areas: Excellent Science (32% of the total budget), Industrial Leadership (22%), and Societal Challenges (39%). The latter includes Societal Challenge 1, ‘Health, Demographic Change and Wellbeing’, which aims to improve health and represents 10% (US$10 billion) of Horizon 2020’s total funding. It is estimated that approximately US$120 million will be spent on R&D for PRNDs. The exact share for global health R&D is not known yet since the Work Programme 2018-2020, which outlines funding opportunities for that period, is currently being developed.

The European Commission contributes to global health R&D through three main funding mechanisms, all of them funded through the ‘Societal Challenge’ section of Horizon 2020: the Work Programmes implemented directly by the Commission, the European and Developing Countries Clinical Trials Partnerships (ECDTP 2), and the Innovative Medicines Initiatives 2 (IMI 2).

  • Under Horizon 2020, the Work Programmes of Societal Challenge 1 focus on health challenges faced by Europe and also cover diseases that impose a high global burden. In 2014 to 2015, the relevant Work Programme provided €1.2 billion (US$1.6 billion) and will provide €685 million (US$910 million) for 2016 to 2017, according to the Commission. Global health R&D is not a major priority of the two current Work Programmes. Since 2015, however, the Commission has funded two projects for the development of vaccines against TB, investing €58 million in 2015 and 2016, and issuing tenders for research projects on HIV/AIDS, malaria, and/or other neglected infectious diseases (2014-2016), as well as urgent research needs for the Zika virus (2016). Lastly, the Commission published a call to improve the control of infectious epidemics and foodborne outbreaks through rapid identification of pathogens (2014).
  • EDCTP’s objective is to accelerate the development of health technologies for poverty-related and neglected diseases (PRND) in sub-Saharan Africa. EDCTP 2 is in its second business cycle, which runs from 2014 to 2020, and has a budget of approximately €1.4 billion (US$1.9 billion). The EU will provide €683 million (US$846 million) from the EU general budget, provided this is matched by contributions from European Participating States, in cash or in kind. In general, this means that donor governments can report existing investments in national research as in-kind contributions to EDCTP 2. According to data provided by the Commission, €85 million (US$113 million) was disbursed from 2014 to 2015 through EDCTP 2 on a range of activities, such as the clinical validation of diagnostics tools and research capacity development during the Ebola crisis, for example. Alongside TB, HIV/AIDS, and malaria, neglected tropical diseases are now also eligible for R&D funding.
  • IMI is a ‘joint undertaking’ between the EU and the European pharmaceutical industry that is represented by the European Federation of Pharmaceutical Industries and Associations (EFPIA). Under IMI 2 (2014-2020), the Commission provides half of the IMI budget, providing €1.6 billion (US$2.1 billion) from the Societal Challenge of Horizon 2020. €1.4 billion (US$1.9 billion) is provided as in-kind contributions by EFPIA companies. An additional €213 million (US$283 million) is provided as in-kind contributions by other life-science industries or organizations that are not part of EFPIA. €114 million (US$151 million) was invested into global health R&D through IMI 2 between 2014 and 2015 according to the EC, mostly allocated for research on Ebola, including vaccine clinical trials.