Supply agreements

The following paragraphs are intended to provide specific information with regards to the first Advance Market Commitment (AMC) supply agreements. The names of the participating companies are listed in alphabetical order.

• GlaxoSmithKline Biologicals: following the first call for AMC supply offers, published on 4 September 2009, on 23 March 2010, GlaxoSmithKline (GSK) Biologicals signed a provisional supply agreement (PSA) with UNICEF. Under the PSA, GSK committed to supply 30 million doses annually (annual supply commitment) from January 2012 for a period of up to 10 years.
  
  Consequently 15% of the AMC funds were allocated to this manufacturer according to the AMC terms and conditions. The tail price for this agreement is US$ 3.50.
  
  This agreement remained provisional until the candidate vaccine was deemed AMC eligible by the AMC Independent Assessment Committee (IAC) on 16 April 2010.

• Pfizer Inc: on the same date, Pfizer Inc. signed a PSA with UNICEF. Under the PSA, Pfizer Inc. committed to supply 30 million doses (Annual Supply Commitment) annually from January 2013 for a period up to 10 years. Consequently 15% of the AMC funds were allocated to this manufacturer according to the AMC terms and conditions.
  
  The tail price for this agreement is US$ 3.50. This agreement remained provisional until the candidate vaccine was deemed AMC eligible by the AMC Independent Assessment Committee on 23 August 2010.

Capacity Development Period

In addition to those PSAs, GSK and Pfizer Inc. agreed to provide in total 7.2 million doses, 24.2 million doses, and 20 million doses for the years 2010, 2011 and 2012 as part of the AMC capacity development period.

The capacity development period is defined as the period during which suppliers develop dedicated manufacturing capacity to serve GAVI eligible countries.

Incentivise manufacturers

UNICEF opted not to award the full quantities of the GAVI Strategic Demand Forecast for 2014 in response to this first tender.

In order to incentivise manufacturers to accelerate the development of new vaccines, to contribute to the creation of a healthy market with multiple suppliers, and to enhance the possibility to access lower tail prices through future offers, quantities have been reserved for award at a later point in time.

With the conclusion of this first procurement round under the AMC, 70% of the AMC funds remained unallocated and available for successive rounds of calls for offers.

More on this topic

The following paragraphs are intended to provide specific information with regards to the starting date of supply, suppliers’ names, doses allocated, and amount of AMC funds that remain unallocated. The names of the participating companies are listed in alphabetical order.

On the week starting 12 December 2011, UNICEF as procurement agency on behalf of GAVI confirmed the entry into new supply agreements with GlaxoSmithKline (GSK) Biologicals and Pfizer Inc.

GSK will start supplying 18M doses annually (Annual Supply Commitment) from 2014 for a period of 10 years. The tail price for this agreement is US$3.50. Consequently 9% of the AMC funds are allocated to this manufacturer under this agreement according to the AMC terms and conditions. The total doses awarded to GSK under two supply agreements amounts to 48M annually.

Pfizer will start supplying 18M doses annually (Annual Supply Commitment) from 2014 for a period of 10 years. The tail price for this agreement is US$3.50. Consequently 9% of the AMC funds are allocated to this manufacturer under this agreement according to the AMC terms and conditions. The total doses awarded to Pfizer under two supply agreements amounts to 48M annually.

Capacity Development Period

In addition to those supply agreements, GSK and Pfizer Inc. have agreed to provide in total 9 million doses for each of the years 2012 and 2013 as part of the AMC capacity development period.

Shaping markets through providing incentives to manufacturers

UNICEF has opted not to award the full quantities of the GAVI Strategic Demand Forecast for 2016 in response to this second tender. In order to incentivize manufacturers to accelerate the development of new vaccines, to contribute to the creation of a healthy market with multiple suppliers, and to enhance the possibility to access lower tail prices through future offers, quantities have been reserved for award at a later point in time.

Status of allocation of PCV

52% of the AMC funds corresponding to US$780M remain unallocated and will be available for successive rounds of calls for offers.

Status on overall supply commitments

Total contracted supply