New Investment Fund Will Advance Late-Stage Vaccines and other Global Health Technologies

  New Investment Fund Will Advance Late-Stage Vaccines and other Global Health
  Technologies

  JPMorgan Chase, the Bill & Melinda Gates Foundation and partners announce
      successful capital raise for first-of-its-kind investment product

Business Wire

NEW YORK -- September 23, 2013

A new investment fund structured by JPMorgan Chase & Co. (NYSE:JPM) and the
Bill & Melinda Gates Foundation will, for the first time, allow individual and
institutional investors the opportunity to finance late-stage global health
technologies that have the potential to save millions of lives in low-income
countries.

With $94 million committed by a pioneering group of investors – including
anchor support from Grand Challenges Canada (funded by the Government of
Canada), the German Ministry for Economic Cooperation and Development (acting
through KfW) and the Children’s Investment Fund Foundation – the Global Health
Investment Fund (“GHIF” or the “Fund”) will help advance the most promising
interventions to fight challenges in low-income countries such as malaria,
tuberculosis, HIV/AIDS and maternal and infant mortality. To help mitigate the
risk of investing in the clinical development of new technologies, the Gates
Foundation and the Swedish International Development Cooperation Agency have
committed to partially offset potential losses in the Fund, which will seek a
financial return for investors by targeting high-impact technologies with
public health applications in both developed and emerging markets.

“The Global Health Investment Fund demonstrates the potential for innovative
collaborations and thoughtful financial structures to mobilize new sources of
capital for social challenges,” said Jamie Dimon, Chairman and CEO of JPMorgan
Chase & Co. “This product brings a diverse group of investors together around
the shared objective of developing life-saving technologies in a financially
sustainable way.”

LHGP Asset Management (“Lion’s Head”), a London-based asset manager
specializing in sustainable development, will be responsible for originating,
managing and exiting GHIF portfolio investments. In addition to the anchor
supporters, the Fund’s investor group includes organizations such as the
International Finance Corporation, GlaxoSmithKline, Merck, The Pfizer
Foundation, Storebrand and JPMorgan Chase, in addition to qualified
individuals and family offices.

“We invest in global health because we know that when health improves, life
improves by every measure,” said Bill Gates, Co-Chair of the Bill & Melinda
Gates Foundation.

Private sector financing for global health research and development is more
important than ever. Philanthropy, government funding and pharmaceutical
industry support have built a remarkable pipeline of global health
innovations—with as many as 200 new products currently under development—but
late-stage clinical trials are costly and development expenses are outpacing
charitable support. Traditional investment capital can play a meaningful role
in solving this problem, particularly when it is supplied by investors who
include the expected social impact of their activities in their return
calculations.

“This innovative fund is mobilizing financing for medical advances that could
potentially save millions of lives,” said World Bank President Jim Yong Kim.
“It shows that we can align the needs of investors with the need for cures for
diseases which cause so much suffering in developing countries."

The GHIF will invest in new drugs and vaccines, emerging diagnostic tools,
child-friendly formulations of existing products, expanding manufacturing
capacity and other applications that will help bring affordable technologies
to those most in need.

“Innovation and investment in global health research and development are the
way forward in tackling pressing health challenges and delivering meaningful
results for those most in need around the world,” said the Hon. Christian
Paradis, Canada’s Minister of International Development. “This Fund is blazing
the trail, and Canada is proud to have played a key role in its
establishment.”

“Millions of children die each year or suffer from debilitating conditions
because the right treatment does not exist for them,” said Jamie Cooper-Hohn,
Chair of the Children’s Investment Fund Foundation (CIFF). “Relatively little
investment goes to the development of new drugs, vaccines and diagnostics
specifically targeted at children in developing countries where child
mortality is most dire. CIFF is very pleased to be a major investor into the
Global Health Investment Fund, which promises to deliver new finance and focus
to this neglected area.”

Additional Partner Endorsements

  *Christopher Egerton-Warburton, GHIF Fund Manager: “GHIF joins the family
    of innovative financing mechanisms in global health. Although this is the
    first investment fund dedicated to global health R&D, we hope this will
    serve as a pilot for future funds of this type in global health and other
    sectors.”
  *Charlotte Petri Gornitzka, Director General, Swedish International
    Development Cooperation Agency (Sida): “Sweden and Sida are excited to be
    part of this groundbreaking initiative where private capital is put to
    work for development. It shows the magnitude of results that can be
    reached when aid, business and philanthropy work hand in hand.”
  *Dr. Norbert Kloppenburg, KfW Executive Board member: "Thanks to the Fund,
    more people will have access to improved health care—while at the same
    time a financial return will be generated for investors. The projects
    supported by the fund will improve the health status of many people,
    especially women and children, and will thus contribute to poverty
    alleviation."
  *Dr. Moncef Slaoui, Chairman Vaccines and R&D, GlaxoSmithKline: “I am
    convinced the GHIF will be instrumental in helping bring cutting edge
    innovation and solutions to diseases of the developing world and this is
    one reason why we are participating. This collaboration demonstrates that
    with an innovative structure, a fund with a humanitarian focus can appeal
    to a broader range of investors.”
  *Jeffrey A. Chodakewitz, MD, Vice President, Global Clinical Development,
    Merck: “As the first investment fund dedicated to global health R&D, GHIF
    has the potential to make a real impact on the health of underserved
    populations. The Fund’s unique ability to advance science while seeking to
    provide a reasonable return to investors aligns closely with Merck’s own
    commitment to discovering innovative solutions to the world’s greatest
    health challenges in a sustainable way.”
  *Caroline Roan, President, The Pfizer Foundation: “We are proud to join an
    esteemed, diverse group of partners to further global health through this
    innovative funding source. The GHIF’s investments will expand access to
    health care, save lives and foster new possibilities for communities of
    people that grow from improved health.”
  *Jonas Ahlen, Investment Manager, Storebrand: "We are excited to be part of
    GHIF as it gives our clients exposure to a new and attractive investment
    class, while at the same time improving the lives of poor people. We are
    proud to contribute to global health access through this ground breaking
    transaction, and hope we can inspire other institutional investors to
    consider this sector."

For additional background on the Fund and the organizations involved, please
visit www.GHIF.com.

This press release does not constitute an offer or solicitation with respect
to interests in GHIF or any other securities. Offers and sales of interests in
GHIF have not and will not be registered under the U.S. Securities Act and
such interests may be sold only to accredited investors. Neither the U.S.
Securities and Exchange Commission nor any other regulatory authority has
passed upon the merits of an investment in GHIF or the accuracy or adequacy of
this press release. Interests in GHIF are not subject to the protections of
the U.S. Investment Company Act of 1940.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm
with assets of $2.4 trillion and operations worldwide. The firm is a leader in
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available at www.jpmorganchase.com.

Contact:

JPMorgan Chase & Co.
Jennifer Kim, 212-622-7068
jennifer.h.kim@jpmchase.com
 
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