• Market shaping

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  • Gavi’s market shaping efforts aim to make life-saving vaccines and other immunisation products more accessible and affordable for lower-income countries.

  • Credit: Gavi/2014/Sanofi Pasteur.

    Healthy markets for vaccines and other immunisation products allow manufacturers to plan production based on known demand, donors to maximise their investments and, most importantly, developing countries to buy suitable products at prices they can afford.

    Market failures

    Market forces do not always serve low-income countries well. Historically, uncertain funding and demand for vaccines led to manufacturers not having the incentive to invest in new products at affordable prices for developing countries.

    As a result, there was often a long time lag between the time a vaccine was available in rich countries and when it was introduced in developing countries.

    Gavi was created to address these market failures. Through our market shaping goal, we make proactive efforts to improve the health of markets for vaccines and other immunisation products.

    The healthy markets framework

    In 2016, the Gavi Secretariat, UNICEF and the Bill & Melinda Gates Foundation jointly developed a “healthy markets framework”.

    The framework helps us to develop common strategies for vaccine markets across the Vaccine Alliance, track progress against the “healthy market dynamics” indicator in our 2016–2020 strategy, inform our supply and procurement roadmaps and support UNICEF’s procurement strategies and processes.

    We have committed to improving the health of six vaccine markets between 2016 and 2020.

    PUBLIC CONSULTATION

    Lessons learned from the first 10 years of Gavi’s existence suggested that market forces alone would not sufficiently improve supply security and pricing for low-income country markets. Drawing from these lessons, Gavi shifted to a more explicit and proactive approach to shaping vaccine markets with the development of a strategic goal on shaping markets (SG4) and a Supply and Procurement Strategy (SUPPRS), which sets out the strategic framework to deliver on our ambitions.

    While primarily intended to benefit the countries that Gavi supports, the ultimate goal of Gavi’s market shaping work is to improve the health of markets as a whole – for manufacturers, countries and partners. But in doing so, our market shaping activities may have unintended consequences for these stakeholders. Such consequences, or externalities, can be both positive and negative, short- and long-term.

    For example, downward pressure on vaccine prices might raise uncertainty about the long-term return on investment for vaccine development. This could deter manufacturers from developing new products that are needed, or from entering the market altogether. Such pricing pressure might also cause existing manufacturers to exit the market, and put supply security at risk. On the other hand, Gavi’s ability to attract new entrants into the vaccine market, stimulating competition and reduce prices across the market has benefits well beyond Gavi countries.

    WHY DOES GAVI NEED YOUR INPUT?

    In SUPPRS 2016-20, Gavi committed to monitoring the unintended consequences of it activities in Gavi-supported and non-Gavi-supported countries, and on manufacturers and partners. This will help us better weigh risks and consequences against potential benefits. To do so, we are asking you to provide examples of externalities and how to monitor them.

    HOW CAN YOU HELP?

    Read the full project brief here before providing your feedback.

    Respond to our survey here.  

    As you identify unintended consequences to monitor, please also suggest ways to evaluate them.

    WHAT WILL GAVI DO WITH YOUR COMMENTS?

    All comments submitted through our online feedback form will be reviewed, compiled, published in summarised form and considered in prioritising externalities of market shaping. Once we have identified key externalities to monitor, we will hold a second public consultation to gather additional feedback.

    Deadline: July 30th, 2017.  

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