5th Global Meeting on Implementing New and Under-utilized Vaccines, 22-24 June 2011
Workgroup 3. The Vaccine Supply and Pricing Situation
Background
Given that there are many new vaccines and there is great interest in adoption of these vaccines, the interrelated issues of pricing and supply are extremely important for countries, donors and suppliers alike. A potential impact of the recent successful GAVI Pledging Conference brings (a) increased demand and supply certainty; (b) resources to act upon supplier price reductions for GAVI vaccines, both of which could lead to price reductions for GAVI countries based on secure quantities.
At the same time, with revised GAVI eligibility criteria being applied, there are more countries moving into the Lower-Middle Income Countries (LMIC) grouping and out of GAVI eligibility, with an equal number of children now living in LMICs as there are in GAVI countries.
In this context it was considered important to review current perceptions around prices, articulate the issues constraining LMICs from being able to introduce new vaccines including prices, and identify strategies and tools at the disposal of the international community to address the situation.
Main Topics of Discussion
An interactive quiz gauged perceptions, expectations and challenges on vaccine pricing. An overview of current and prospective supply situations, an update on pricing and transparency of information, a better understanding of GAVI's market shaping strategy and ongoing activities was presented and key observations and conclusions for new vaccines in LMIC and graduating countries discussed.
Specifically for LMICs the price of new vaccines is a concern with introduction rates of new vaccines lagging behind those countries receiving support from GAVI. There is both inequity in access to funding between countries, but also to vaccine pricing with an increasing number of countries unable to access prices similar to those negotiated by GAVI and UNICEF.
The option of pooled procurement as a possible tool to improve price, supply, and demand was repeatedly discussed, and access to information was highlighted as a key obstacle to moving forward in this direction.
Recommendations
The following actions were requested of the global partners working in the area of reducing vaccine prices and ensuring quality and security of vaccine supply:
- WHO - Facilitate improved access to product and pricing information and to initiate a coordinated effort on LMIC issues.
- WHO/Partners - Continue to develop pooled procurement mechanisms among groupings of countries, including those that are not necessarily along regional lines.
- UNICEF - Continue to provide access to pricing information for GAVI vaccines.
- GAVI - Explore GAVI GNI threshold and eligibility criteria to reduce the inequality between countries in accessing GAVI support and vaccine prices.
- GAVI/UNICEF - Implement the draft supply and procurement strategy.
- Partners - Determine optimal ways to provide support to LMICs to promote low prices, strengthen decision-making capabilities (including generating and interpreting epidemiological information and ability to conduct cost-effectiveness analysis) and improve supply of new vaccines (e.g., pooled procurement, technical assistance, capacity building).