Pneumonia vaccine price drops dramatically for lower-income countries thanks to the Gavi pneumococcal Advance Market Commitment

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Pneumonia vaccine price drops dramatically for lower-income countries thanks to the Gavi pneumococcal Advance Market Commitment
New supply agreement between UNICEF and Serum Institute of India (SII) makes pneumococcal conjugate vaccine (PCV) available at US$2.00 per dose, a 43 per cent reduction from the Gavi price at the start of the Advance Market Commitment

Geneva/ New York, 16 June 2020 – Lower-income countries across the world will now be able to access life-saving pneumococcal conjugate vaccines, which protect against the leading cause of pneumonia, for US$ 2 per dose, thanks to a new supply agreement between UNICEF, Gavi’s procurement partner, and the Serum Institute of India (SII). The new price represents a 43 per cent reduction from the Gavi price of US$3.50 at the start of the Advance Market Commitment (AMC).

The supply agreement is the eighth to take place under the Vaccine Alliance’s Advance Market Commitment (AMC) mechanism, and the first to include a developing country manufacturer. Under the agreement, the Indian manufacturer will provide ten million PCV doses to Gavi-supported countries each year for the next ten years.The pneumococcus bacterium is the leading cause of severe pneumonia and is a major cause of morbidity and mortality worldwide. Most of these deaths occur in lower-income countries and include a disproportionate number of children under the age of two.

The AMC, which is set to end this year, was launched by Gavi in 2009 – with the support of donors Italy, the United Kingdom, Canada, Russia, Norway and the Bill & Melinda Gates Foundation – to solve a clear example of market failure: complex vaccines like PCV would normally reach low-income countries, where the disease burden is often highest, ten to 15 years after their introduction in industrialised countries. The AMC mechanism incentivised research and development (R&D), particularly for vaccines suitable for developing country epidemiological contexts, and an expansion in manufacturing capacity to meet demand from lower-income countries while maintaining an affordable price per dose…