POST 00901E : Hib INITIATIVE
Follow-up on Posts 00885E, 00887E, 00890E and 00896E
22 March 2006
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This posting contains two contributions, both from Michel Zaffran
(mailto:[email protected]) from GAVI in Geneva. In the first, he
briefly answers my question in post 00896E. It is thus subsidies. I was
just wondering to whom really go the untimate benefits of this system. In
the second, he explains GAVI vision about vaccine costs, question raised
by Anthony Battersby in his previous contributions on the Hib Initiative.
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Claude,
GAVI subsidy of prices to poorest countries is a way to tier prices and
accelerate availability for poorest should there be a recognised need for
the vaccine.
In the case of tetra and penta, the price was more fixed by the
manufacturer (monopoly) than by GAVI.
Michel
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Learning from the experience gained during the first 5 years of support to
countries, GAVI has moved away from the approach of donating the vaccines
. It is now subsidizing the vaccines at a price that is much lower than
the market price. Countries will however have to decide, based on the
evidence they have at their disposal, or the evidence they collect with
the support of partners such as WHO, UNICEF, the Hib Initiative etc...
whether the introduction of the new vaccines, at the proposed subsidized
price, makes public health and economic sense. They should clearly be
empowered to make an informed decision and prioritise among the public
health interventions at their disposal.
There are two assumptions ::
1) over the next 5 to 10 years the advent of new emerging suppliers will
generate competition and drive the prices of the vaccines downward to more
affordable levels and
2) during the same period of time the health and immunization budgets of
the concerned countries will increase and enable them to pay for the
market price of the vaccines at the end of the subsidized period.
While some of the 72 countries will achieve this objective, (we are
already seeing a few countries moving in that direction) we will certainly
be proven wrong for other countries. Indeed , these are the 72 poorest
countries in the World! In the interim, (10 years) lives will have been
saved and part of the economic burden associated with infant mortality
will have been reduced. As sustainability of the effort will not have been
achieved for these countries, it will continue to be a moral imperative
and the responsibility of the international community to continue to
support them.
In summary:
* Introduction of the vaccines should be an evidence-based country
decision: Partners such as WHO have a critical role to play to ensure that
countries build their capacity, put in place the mechanisms to collect and
analyse the evidence and decide, in the context of other public health
priorities.
* Country should contribute financially to the price of the vaccine,
albeit at a very low level, to ensure ownership of the decision to
introduce the vaccines.
* GAVI and donor partners will subsidize the price of the vaccines
during an extended period to allow for market forces to operate.
* The broader use of the vaccine will attract additional producers that
will eventually produce in larger quantities at lower costs.
* However the time of penny vaccines is gone. if we want to secure
reliable supplies of vaccines of assured quality, we, collectively,
countries and donors, must come to the realisation that new vaccines are
more expensive than the traditional ones and that these life saving
interventions are well worth paying a few dollars.
* The international community has the responsibility to provide long
term support to the poorest countries: The recent developments of the
IFFIm, the AMC pilots supported by the G7 and others are a very strong
signal of their commitment to development and to immunization.
Michel
Michel Zaffran
Deputy Executive Secretary
GAVI Alliance
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