How the pneumococcal AMC works

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The Pneumococcal Advance Market Commitment has helped speed up the development and availability of pneumococcal vaccines for developing countries. Follow the process that makes this possible 

In this pilot AMC, donors commit funds to guarantee the price of vaccines once they have been developed. These financial commitments provide vaccine manufacturers with the incentive they need to invest in vaccine research and development, and to expand manufacturing capacity. In exchange, companies sign a legally-binding commitment to provide the vaccines at a price affordable to developing countries in the long term.

World Bank

Donor

Commitment (US$)

Italy

635 million

UK

485 million

Canada

200 million

The Russian Federation

80 million

Norway

50 million

The Bill & Melinda Gates Foundation

50 million

Donors make grant payments to the World Bank, in accordance with its specific schedule or through an agreed demand-based payment arrangement.

The World Bank holds donor payments on its balance sheet. These are designated assets with a corresponding liability and are paid to Gavi according to AMC terms and conditions.

UNICEF: Calls for Supply Offers

Based on a 15-year Strategic Demand Forecast (SDF), which Gavi updates on a semi-annually basis, UNICEF issues Calls for Supply Offers. Suppliers willing to participate must sign a registration agreement, binding them to the AMC terms and conditions.

Offers must have a start date for committed supply of no later than five years into the future. Awards cannot be higher than the forecasted demand for the year in which suppliers propose to initiate deliveries.

Supply agreements

UNICEF assesses all offers received and enters into supply agreements with those manufacturers whose products have been deemed AMC eligible by the IAC.

UNICEF can also enter into provisional supply agreements with those AMC Registered manufacturers whose product has been accepted by WHO for prequalification review, or is already prequalified.

Independent Assessment Committee

The Independent Assessment Committee (IAC) establishes if the product meets the Target Product Profile (TPP) developed for the pneumococcal AMC.

Manufacturers

Participating manufacturers must make a 10-year commitment to supply a share of the target demand of 200 million doses annually at a price no higher than US$ 3.50 per dose (paid for by Gavi with a co-financing contribution from the recipient country governments, in accordance with Gavi’s standard co-financing policy).

In return, each manufacturer will receive a share of the committed AMC Funds of US$ 1.5 billion in proportion to their supply commitment.

For instance, if a firm makes an offer to supply 50 million doses, it is entitled to receive US$ 375 million, 25% of the total US$ 1.5 billion AMC funds. This amount is paid out as an additional US$ 3.50 per dose for approximately 20% of the doses they provide.

The pneumococcal AMC process

The pneumococcal AMC process
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