Both multinational vaccine suppliers and a growing number of developing country manufacturers produce vaccines used in the world's poorest countries. A larger number of producers and bigger orders together create a more stable maket for vaccines and a decline in prices.
GAVI supports combination vaccines which are easier to introduce than a stand-alone antigen that requires an additional injection, as recommended by the Strategic Advisory Group of Experts (SAGE). However, the trade-offs involved in this choice – relatively higher prices and a limited supply base – were not fully analysed with regard to expected price decreases and increases in the number of manufacturers able to meet WHO pre-qualification requirements. As a result, GAVI has reassessed its ability to influence the market and improve its supply and procurement activities. Read more (Word - 40K) on GAVI’s activities in this area.
In 2002, the GAVI Financing Task Force commissioned a report on vaccine procurement (PDF - 385K) which found a number of shortcomings, including inaccurate demand forecasts and timelines to scale-up support for combination products. It recommended a more integrated supply and procurement system.
A new set of procurement principles was developed by UNICEF and the Bill & Melinda Gates Foundation and approved by the GAVI Board. In addition, the Boston Consulting Group was commissioned to report on how GAVI could better work with suppliers. A supply strategy group was formed with the GAVI partners in the summer of 2005 to consider improvements (PDF - 561K) in this area. Its recommendations resulted in the creation of a procurement reference group which provided advice and input to the most recent procurement round for Hib- and HepB-containing vaccines for 2007-2009. Read the procurement reference group report (Word - 181K).