Global Fund Watch [to 28 June 2014]
:: New Framework on Malaria Drugs to Save $100 Million
24 June 2014
GENEVA – In a major initiative that fundamentally changes how anti-malaria drugs are procured, the Global Fund is entering into new framework agreements with suppliers of artemisinin-based combination therapy (ACT) that are aimed at improving delivery and having a bigger impact, both in value for money and in lives saved.
Working closely with the UK’s Department for International Development, partners achieved a way to maximize transition funding for a private sector co-payment mechanism for ACTs, the driving factor in projected savings of over US$100 million through price reductions over two years. World Health Organization, the President’s Malaria Initiative, UNICEF, UNITAID and the Clinton Health Access Initiative all aligned their efforts in the process.
The agreement establishes framework contracts of two years with allocated and committed volumes of ACTs with a group of nine selected suppliers. In addition to the financial benefits, the framework will bring improvements in pipeline visibility, delivery performance and market sustainability, and also encourage local production…