First Advance Market Commitment (AMC) pilot project formally launched: pneumococcal diseases in developing countries

The Finance Ministers of Italy, Canada and Russia, together with the United Kingdom, Norway and the Bill & Melinda Gates Foundation, the World Bank Group, the GAVI Alliance, UNICEF and WHO, “formally activated the implementation phase of the Advance Market Commitment (AMC) pilot project to accelerate introduction of vaccines against pneumococcal diseases in developing countries.” The action represents a formal step in their $1.5-billion commitment, made in Rome on February 9, 2007, “when they decided to adopt the innovative AMC approach to save lives in the world’s poorest nations.”

The AMC against pneumococcal disease “will prompt the establishment of new production plants dedicated to pneumococcal vaccines (and) over the long term, this will create a self-sustainable market at affordable prices for recipient countries.” The currently existing pneumococcal vaccine is sold at over US$70 in industrialized countries. But thanks to the AMC, the long term price for developing countries will be US$3.50. In June 2008 the GAVI Alliance Board confirmed its intent to provide US$1.3 billion to support the purchase of pneumococcal vaccines by poor countries interested in buying them. GAVI hopes to assist up to 60 of the world’s poorest countries to introduce these vaccines by 2015. With today’s ceremony, “donors are making the AMC fully operational, helping create a new market with all parties having signed the package of legal agreements that outline their respective roles.”

AMC donor contributions (US$)

Italy – $635 million
UK – $485 million
Canada – $200 million
Russia – $80 million
Norway – $50 million
The Bill & Melinda Gates Foundation – $50 million

TOTAL – $ 1.5 Billion

http://www.gatesfoundation.org/press-releases/Pages/advance-market-commitment-pneumococcal-pilot-090612.aspx

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