Developing country pharmaceutical industry

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More than half of Gavi vaccine suppliers are based in emerging markets. As more manufacturers based in developing countries enter the market, the increased choices they bring provides a more diversified supply base, as well as competition in vaccine markets which may result in driving down the price of vaccines.

Developing country pharma industry

Credit: Gavi/2007/Atul Loke.

DCVN logo Gavi aims to make vaccines more affordable for low-income countries by expanding the range of suppliers to include developing country manufacturers. The Vaccine Alliance has assigned a seat on its Board to a representative of the Developing Countries Vaccine Manufacturing Network (DCVMN), a voluntary alliance of 44 companies from 16 developing countries.

DCVMN goals

DCVMN's goals are closely aligned to those of Gavi and include:

  • To provide a consistent and sustainable supply of quality vaccines at an affordable price to developing countries
  • To strive for an international recognition such  that developing country vaccine manufacturers have an essential role in assuring the availability of quality vaccines for national immunisation programs
  • To encourage continuation of research and development efforts to meet the emerging vaccine needs in the developing world

Role on the Gavi Board

The Vaccine Alliance assigns a seat on its Board to a developing country pharmaceutical company, currently chaired by the Serum Institute of India, with PT Bio Farma as an alternate board member. The two companies are both members of the Developing Countries Vaccine Manufacturing Network (DCVMN), a voluntary alliance of state-owned and private companies. Developing country manufacturers are also represented on the Board's Programme and Policy Committee.

DCVMN also seeks to assist members achieve WHO prequalification and to foster collaboration and communication in the international vaccine industry.

Increased competition

There are already signs that increased competition is driving down the price of Gavi-supported vaccines.  For example, since 2001, the average price of pentavalent vaccine has decreased by more than 40 percent as the number of manufacturers increased from one to six. Four of these manufacturers are based in emerging markets.

Furthermore, investment and technology transfer is also broadening the range of vaccines produced in developing countries.

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