Reading Room Production — page 468

Draft products and capabilities required to address our public health needs, the U.S. Government will reduce its fixed costs while providing itself with greater flexibility in stockpiling and enhanced agility in responding to unexpected threats. Because multi-use approaches have the potential to yield commercially appealing products, industry already has an inherent motivation for exploring this space. Industry is currently constrained however, because such technological leaps are generally outside of the accepted risk portfolio for large pharmaceutical firms, and the smaller biotech companies (that drive much of the innovation in the life sciences) have difficulty in acquiring capital for such risky endeavors without a wellcircumscribed end market. Therefore, we must also find ways to increase investment in such highrisk/high-reward approaches. The U.S. Government will assess whether incentives such as research and development tax credits and transferable priority review vouchers would increase collaborations between large pharmaceutical firms and smaller companies developing innovative technology. The U.S. Government will also consider establishing an independent, not-for-profit venture-capital entity that spurs innovation by providing critical early-stage investments in multi-use approaches. 'A model for an entity that addresses national security needs while supporting the development of multi-use products already exists in the form of In-Q-Tel, which was launched by the Central Intelligence Agency (CIA) in 1999 as a private, independent, not-for-profit organization. Rather than seeking single-solution custom products, In-Q-Tel engages with companies that build successful technology solutions that can be sustained by the commercial market. Meeting the demands of the commercial market stimulates continued product development and enhancements with added value for the Intelligence Community (IC).! AlthoughlHeneeforward] the U.S. Government will adopt credible multi-use capability as a high Priority goveming principle for future investments in medical countermeasures, fx adopting met tit ple ver, we will not jeopardize current success nor tie the hands a government to act in the best ltercets of the American people. Going forward, the extent to which we apply the principle to legacy programs and investments will be determined on a case-by-case basis. IL. Collaborations, Partnerships, and Cooperatives The pharmaceutical industry too often relies on anachronistic technologies or practices because our regulatory paradigm and market forces present large costs and marginal returns for many innovations in the development and manufacturing process. It is often against the economic interest 1 Analogous to corporate strategic funds such as those found at Intel Corporation, Motorola, and Disney, In-Q-Tel 'operates for the strategic -- rather than financial -- benefit of its customers in the IC. In-Q-Tel targets its technology engagements based on a deep understanding of the needs of its customers in the CIA and the IC. To best serve these customers, lr Tel plays multiple roles, serving as: A technology accelerator, fostering development and introduction of technologies needed by the IC; A capabilities builder, helping nascent commercial technologies mature into commercial-off-the-shelf products the government can buy; '+ Anidea lab and forum for innovation, providing the IC with insight and access to both new technologies and leading innovators and thinkers; and '+ A strategic investment firm, investing in companies and helping build businesses into reliable providers for the Ic. 'Commented [a3]: I got rid of "Henceforth" since it sounds too such ike a royal degree and will feed the current anxieties. I Delieve that we get the same effect with the way Thave changed i, afmuci 2010-02-11 20:09:00