A group of philanthropic funds and investors led by the Soros Economic Development Fund (SEDF) — the impact investing arm of the Open Society Foundations — has announced the launch of a social enterprise that will work to expand access to affordable state-of-the-art medical technology.

With support from the Bill & Melinda Gates Foundation and the aim of expanding global access to health care through decentralized research, development, and manufacturing in and for the Global South, Global Access Health (GAH) has acquired London-based Mologic Ltd with investments totaling at least $41 million. An innovator in the development of lateral flow and rapid diagnostic technologies, Mologic provides diagnostic tests for COVID-19 as well as tropical diseases such as dengue, bilharzia, and river blindness. Its efforts to develop affordable testing for neglected tropical diseases previously has been supported by grants from the Gates Foundation and other donors. The transformation of the for-profit company into a social enterprise will enable it to reinvest its profits in addressing gaps in the provision of global diagnostics in low-income communities and regions.

As part of the transaction, GAH also will integrate Global Access Diagnostics (GAD), a nonprofit established in April 2020 by the founders of Mologic — with support from SEDF, the UK Department for International Development, and other funders — that is focused on low-cost manufacturing of diagnostic tests and licenses Mologic's technology in Africa and South Asia.

"The COVID-19 pandemic has painfully demonstrated the fundamental inequities in global public health, and in particular the crucial importance of access in low- and middle-income countries to low-price, high-quality lifesaving diagnostic tools," said SEDF chief executive Sean Hinton. "In this unique transaction, philanthropic funds and investors are working together with a skilled and visionary management team in a truly innovative way to address at least one part of that failure by enabling a cutting-edge commercial business to focus all its resources on solving one of the world's most pressing public health issues."

"Mologic's transition into a social enterprise is a deliberate, logical, and natural step for a company focused on delivering affordable diagnostics and biotechnology to places that have been left underserved by the relentless pursuit of profiteering," said Mologic CEO Mark Davis. "With the support of our shareholders, donors, and partners, we have come a long way; we believe we have the people and the skills required for the challenges and opportunities ahead. And we hope this unique transaction will be an example for others to follow."

(Photo credit: Centers for Disease Control and Prevention)