{"id":156219,"date":"2021-12-27T20:23:45","date_gmt":"2021-12-27T14:53:45","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=156219"},"modified":"2021-12-27T20:23:45","modified_gmt":"2021-12-27T14:53:45","slug":"lets-re-emphasize-the-social-aspect-of-our-esg-investments","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/lets-re-emphasize-the-social-aspect-of-our-esg-investments\/","title":{"rendered":"Let\u2019s re-emphasize the \u2018social\u2019 aspect of our ESG investments"},"content":{"rendered":"\n

News: <\/strong>Need to start a new \u2018bio bond\u2019 asset class to support Biomedical research.<\/p>\n

In Environment, social and governance investing, while many of the investments goes to environment and governance aspect, Social-welfare investments are often neglected.<\/p>\n

But there is an urgent need to change this, especially in biomedical research, to make it more sustainable, and affordable.<\/p>\n

What are the issues\/concerns associated with the funding of Bio medical research in the US?<\/strong><\/h5>\n

When a treatment or cure shows promise, it then needs to be tested in clinical trials of increasing size, complexity and cost<\/strong>.<\/p>\n

At the start of these trials, they get funding mostly from university tech-transfer operations, philanthropy and outside investors.<\/p>\n

When a trial shows promise, the next step is another clinical trial and the expense for advancing the proposed cure goes up.<\/strong><\/p>\n

Likewise, it takes a lot of expensive trials<\/strong> before finding third-party investors willing to carry promising research for the end-stage trials essential for drug or medical-device approval.<\/p>\n

However, there is a concern, the equity investors on which biomedical research now depends demand major stakes<\/strong> in high-profile projects with high drug prices to meet their own market imperatives.<\/p>\n

Many nations bypass this equity-based, high-cost, high-risk business model with public investment. But the US has never done it, due to its historic aversion to direct federal investment in for-profit firms.<\/p>\n

Translational valley of death<\/strong> – The gap between promising early-stage clinical research and the end stage at which big money is needed.<\/p>\n

What can be done?<\/strong><\/h5>\n

The best way to bridge the translational valley of death is to change the biomedical-funding model<\/strong> that is currently dependent on equity investments.<\/p>\n

The proven way to create safe, sound, sustainable, and affordable financing is via a limited federal guarantee<\/strong>. This can be done by creating a new \u2018bio bond\u2019 asset class<\/strong>. This will reduce risks dramatically via the government guarantee and eligibility and diversification requirements.<\/p>\n

These requirements also ensure that guaranteed debt funding isn\u2019t misused by big biopharma<\/strong> in the form of a new subsidy or as a back-door backstop for venture capital.<\/p>\n

Source:<\/strong> This post is based on the article \u201cLet\u2019s re-emphasize the \u2018social\u2019 aspect of our ESG investments\u201d<\/strong> published in Livemint<\/strong> on 27th <\/sup>Dec<\/strong> 2021<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

News: Need to start a new \u2018bio bond\u2019 asset class to support Biomedical research. In Environment, social and governance investing, while many of the investments goes to environment and governance aspect, Social-welfare investments are often neglected. But there is an urgent need to change this, especially in biomedical research, to make it more sustainable, and… Continue reading Let\u2019s re-emphasize the \u2018social\u2019 aspect of our ESG investments<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-156219","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704843481},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/156219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=156219"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/156219\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=156219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=156219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=156219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}