Vaccine supply and procurement

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Gavi's strategy for 2011-2015 includes an explicit goal to shape vaccine markets

The value of pooling demand and purchasing

The majority of procurement on behalf of the Vaccine 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 Vaccine 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.

Supply and procurement strategy

To facilitate and accelerate the achievement of Gavi’s market-shaping goal, the Gavi Board approved in November 2011 the Vaccine Supply and Procurement Strategy for the period 2011-2015. The strategy aims to ensure sufficient and uninterrupted supply of high-quality vaccines, promote low and sustainable costs for developing countries, and foster an environment for innovation.

Recognising the differences across vaccines in terms of market maturity and competition, manufacturing complexity and the Vaccine Alliance’s relative market power, Gavi is applying a tailored approach for each vaccine it funds – see human papillomavirus vaccine roadmap.

Drawing on key partners and particularly UNICEF Supply Division which manages most of the vaccine procurement, Gavi will aim to achieve its fourth strategic goal objectives through:

  • continued strengthening and dissemination of forecasting to ensure timely, transparent and accurate market information; and
  • innovative approaches to making demand more predictable, accelerating vaccine development, increasing levels of production, and improving vaccine portfolio management to ensure efficient and effective vaccine procurement and supply-chain management.

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.

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Long-term strategic demand forecasts offer visibility into future market needs to Gavi stakeholders including donors and industry partners 

For more than 4 years, Gavi, the Vaccine Alliance has been using strategic demand forecasts (SDFs) to improve its understanding of vaccine markets. In the context of Gavi’s supply and procurement strategy, the SDF is an important tool to ensure clarity and understanding of the Gavi market for important stakeholders, including manufacturers, donors, and countries.

The SDF has three primary uses:

  1. predict the Vaccine Alliance’s long-term vaccine volume required for the Gavi market;
  2. input into Gavi’s impact projections which include numbers of people vaccinated and health outcomes such as deaths averted;
  3. serve as the basis for calculating financial requirements for the Gavi-supported vaccine programmes.

 

The SDF is generated by the Gavi Secretariat Demand Forecasting Team twice a year and includes all 73 countries that were eligible for Gavi support as of 2011 and a time horizon of 3 to 20 years.

Gavi benefits from the expertise of a SDF Advisory Team composed of Vaccine Alliance partners and other experts. This group serves as an advisory body responsible for providing advice to the Gavi Secretariat on the SDF. This includes providing advice on the global methodology including selection of data sources and assumptions used to forecast vaccine demand.

Other consultation takes place with vaccine experts in the public and private sectors to ensure the SDFs reflect a range of views into the evolution of vaccine markets. Presently, Gavi is producing SDFs for 10 vaccines, including:

  • human papillomavirus
  • inactivated polio
  • Japanese encephalitis
  • measles-containing
  • meningococcal A
  • pentavalent
  • pneumococcal conjugate
  • rotavirus
  • typhoid conjugate
  • yellow fever

The 2014 SDF v9 is current as of the second quarter of 2014.

The public consultation process on the draft Vaccine Supply and Procurement Strategy 2011-2015 is now closed. Thank you to all who have provided feedback.

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 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 Vaccine 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 Vaccine Alliance needs a comprehensive strategy that recognises the differences across vaccines in terms of market maturity and competition, manufacturing complexity and the Vaccine 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'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.
 

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