Vaccine Financing

New, lifesaving pneumococcal conjugate vaccines are now available. Affordable pricing is possible, but the price of new vaccines will be more than pennies per dose. Expanding the pool of funds to pay for these vaccines is one way to ensure that pneumococcal disease is prevented and the lives of children around the world are saved.

The good news is that global immunization funding could be as much as $8 billion for new vaccines over the next 10 years with the advent of two innovative financing mechanisms: International Finance Facility for Immunizations and Advance Market Commitment.

Pneumococcal Vaccine Financing

Donors have committed over $1.6billion (>$100 million + $1.5 billion) through GAVI funding and Advance Market Commitment. Based on vaccine investment cases prepared by PneumoADIP and RotaADIP, GAVI has committed $200 million towards the purchase of pneumococcal and rotavirus vaccines, beginning in 2008. This funding will be used to purchase the existing seven-valent pneumococcal vaccine. Advance Market Commitment donors have committed $1.5 billion for new expanded-protection vaccines, which may be available as early as 2009.

A Momentous Step - The AMC

The Advance Market Commitment (AMC) is an innovative way to protect the lives of the world’s poorest children by making vaccines available in developing countries more quickly. It is based on the concept of putting money aside to guarantee the purchase of vaccines once they are developed, as long as they meet stringent, pre-agreed criteria about effectiveness, cost, and availability. It is a collaborative effort among developing countries, donor nations, and vaccine manufacturers.

The AMC has the potential to save 5.4 million lives by 2030, through accelerating access to vaccines that would not otherwise be available to children for many years. The governments of Italy, UK, Canada, Norway, and Russia, together with the Bill and Melinda Gates Foundation, have committed US$1.5 billion to pilot the AMC for pneumococcal vaccines.

Speaking at the launch of the AMC in February 2007 Gordon Brown, The Prime Minister of the UK, said, "this appalling arithmetic of death and disease around the world has moved us to action…we can ensure that the many are not denied the vaccines and medical advances that are available to the few."

For more information on the AMC, visit www.vaccineamc.org.

IFFIm

Launched in 2006 the International Finance Facility for Immunization (IFFIm) is an innovative mechanism which enables donor countries to go to the international bond market to obtain funds (on the back of legally-binding long-term donor commitments) to speed the purchase of currently available vaccines and earmark funds for new vaccines. Under this financing plan, revenue from bonds will become available earlier than would have been the case with normal aid budgets. IFFIm will be implemented through the GAVI Alliance. This sort of creative funding mechanism is in line with PneumoADIP’s aim of accelerating access to pneumococcal vaccines for the world’s children and is a welcome development.

For more information, visit www.iff-immunisation.org

Promoting Global Investment Through Innovative Financing Mechanisms

Cost-effectiveness analysis has shown that the cost-effectiveness of routine pneumococcal vaccination in low income countries is consistent with World Bank benchmarks for a good investment of health resources in low-income countries. With an international commitment to finance the vaccine, the global community can begin to assure a sustainable, affordable supply of vaccines as early as 2007.

PneumoADIP analyses suggest that, with a firm commitment from donors and countries, it should be possible to get early access to life-saving pneumococcal vaccines and achieve sustainable supply at affordable prices. PneumoADIP is working with industry, governments, international agencies, and non-government organizations to develop a business model to link vaccine demand and supply, and permit the accelerated introduction of pneumococcal vaccines in low income countries.