Vaccine supply and procurement

Underlying the GAVI business model is an intention to ensure a lasting impact on vaccine markets to the benefit of the developing world.

The Alliance strategy for 2011-2015 now includes an explicit goal to shape vaccine markets. GAVI and its procurement partners support this goal through efficient procurement of quality vaccines while ensuring sustainable supply at affordable prices to GAVI countries.

On 4 July, GAVI launched a public consultation on the draft Vaccine Supply and Procurement Strategy. Consultation closed on 29 July and GAVI would like to thank all 15 individuals and organisations who commented. Organisations represented include CSOs, donors, and vaccine makers. Their comments are currently being reviewed, compiled and incorporated as appropriate into a revised version of the Supply and Procurement Strategy.

This revised version as well as the  consolidated comments and feedback received during the consultation process will be presented to the Programme and Policy Committee (PPC) of the GAVI Alliance Board in September for review and further comments. The PPC will then present the strategy to the Board for final review and decision in November 2011.

The value of pooling demand and purchasing

The majority of procurement on behalf of the Alliance is conducted by UNICEF, while GAVI-eligible countries in the Americas are sourcing their vaccines through the Pan American Health Organization (PAHO) Revolving Fund.

GAVI’s role in the global vaccine market is evidenced by the initial impact the Alliance has had in changing the production and supply base, accelerating price declines in some vaccines and supporting the application of tiered pricing that enables poor countries to pay significantly less than higher income countries for the same vaccine.

The hepatitis B, tetravalent and pentavalent vaccines illustrate how these dynamics play out, with pneumococcal vaccines as an example of how innovative financing mechanisms can influence the market. However, GAVI’s ability to shape particular vaccine markets though the magnitude of its procurement though UNICEF depends on various factors, including the number and capacity of manufacturers, the vaccine complexity and GAVI’s relative market power in terms of volume and revenue.

Revision of supply and procurement strategy

Previously, GAVI's Supply and Procurement Strategy for Hib and HepB containing vaccines was approved by the Alliance Board in 2005 and has at its core three broad objectives:

1. ensuring a sustainable quantity of supply through a diverse supplier base;
2. selecting products and presentations that best meet the needs of countries;
3. achieving a long-term affordable price that can eventually be sustainably financed by developing countries.

Moreover, GAVI's procurement principles provide additional guidance for decision making by GAVI’s procurement partners.

In view to move towards a more active market management approach, GAVI is currently in the process of revising its vaccine supply and procurement strategy for 2011 to 2015. A draft version of the strategy will be presented in September for the Programme and Policy Committee to consider. The PPC will then present the strategy to the Board for decision in November 2011.

The consolidated comments will be made publicly available at the time of this PPC meeting.

Information transparency

GAVI recognises the importance of timely, transparent and accurate information sharing on expected vaccine demand and supply dynamics. It therefore welcomes vaccine suppliers’ agreement to make pricing information more transparent. UNICEF publishes the vaccine prices paid to individual manufacturers.

More on this topic

From the GAVI site

The market-shaping goal

 

From other sites

• UNICEF Vaccine Price Data

What was the outcome of the public consultation?

The consultation generated significant interest: there were over 620 visits to the GAVI website and over 230 visits to the feedback form specifically. In total, 15 feedback forms were submitted from individual respondents and those representing a broader constituency: individuals (6 responses), donors (4), civil society (4), and pharmaceutical industry (1).

An overview of the process, as well as a summary of the main themes that emerged from the comments received is available here.

What will GAVI do with the comments?

All comments submitted through the online form have been reviewed, compiled and incorporated as appropriate into a revised version of the Supply and Procurement Strategy. This revised version as well as the consolidated comments and feedback received during this consultation process will be presented to the Programme and Policy Committee (PPC) of the GAVI Alliance Board in September for review and further comments. The PPC will then present the strategy to the Board for final review and decision in November 2011.

Why does GAVI need a supply and procurement strategy and what is the scope?

The GAVI Alliance’s success in saving children’s lives and protecting people’s health requires an adequate supply of appropriate, quality vaccines at minimised cost for GAVI and countries.

In order to actively influence vaccine markets to meet these objectives the GAVI Alliance needs a comprehensive strategy that recognises the differences across vaccines in terms of market maturity and competition, manufacturing complexity and the Alliance’s relative market power, as measured by revenues and volumes relative to other purchasers.

The draft document which was open for public consultation laid out the objectives of the new supply and procurement strategy and proposed the means to achieve them. It focused on the period defined by the GAVI Alliance’s five-year strategic plan (2011-2015).

However, it is recognised that the proposed measures will have an impact beyond 2015. The strategy applies to vaccines that have been recommended or will be recommended for use in GAVI-eligible countries and does not address issues related to vaccine-related supplies (e.g. syringes, safety boxes) or in-country supply chain management.

What was the process to date to develop the current draft of the new strategy?

The strategy review process was steered by a task team, under the oversight of the Programme and Policy Committee, composed of 10 experts in the field of vaccine supply and procurement. The final recommendations of the task team were presented to the PPC in May 2011 and the feedback by PPC members has been integrated into the draft strategy that was available for consultation.

With the consultation now closed, the GAVI Secretariat is revising the draft strategy based on comments received during the consultation. The revised version, together with detailed comments and consolidated comments received, will be presented to the PPC on 29 September.

More on this topic

From the GAVI site

Phase III (2011-15)