The market-shaping goal

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Providing appropriate and affordable vaccines for the developing world

Market-shaping goal

Achieving Gavi’s mission depends upon a healthy vaccine market that provides sufficient supply of high quality, appropriate vaccines at low and sustainable prices. To meet these ambitions, Gavi has a strategic goal to shape vaccine markets to the benefit of developing countries.
 

By forecasting and pooling demand from eligible countries and purchasing large amounts of vaccines, the Vaccine Alliance has created a reliable market for vaccines in developing countries.

Gavi’s initial impact is evidenced by the changing production and supply base, in particular with pentavalent and tetravalent vaccines, accelerated price decreases and consistent application of tiered pricing that enables poor countries to pay significantly less than higher income countries for the same vaccine. Price drops of hepatitis B and hib-containing, as well as rotavirus and HPV vaccines illustrate how these dynamics play out, with the Advance Market Commitment (AMC) for pneumococcal vaccines as an example of how innovative financing mechanisms can influence the market.

Goal-level indicators

  • Reduction in vaccine price: change in weighted average price per child to fully immunise with pentavalent, pneumococcal and rotavirus vaccines
  • Security of supply: number of products offered as a percentage of five year target
  • View Gavi's targets for its market-shaping goal
     

Strategic Objectives

 

Vaccine Supply and Procurement Strategy

To facilitate and accelerate the achievement of Gavi’s market-shaping goal, the Gavi Board approved on 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 Alliance’s relative market power, Gavi is applying a tailored approach for each vaccine it funds – see HPV 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.

6 million

Approximately six million future deaths averted from hepatitis B, Haemophilus influenzae type B, measles, pertussis, pneumococcal disease, polio, rotavirus diarrhoea and yellow fever since Gavi's launch in 2000.

Gavi/Bill & Melinda Gates Foundation

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