Supply agreements

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In March 2010, the Advance Market Commitment (AMC) Secretariat announced the first signature of AMC supply agreements

The following paragraphs are intended to provide specific information with regards to the first Advance Market Commitment (AMC) supply agreements. The names of the participating companies are listed in alphabetical order.

  • GlaxoSmithKline Biologicals: following the first call for AMC supply offers, published on 4 September 2009, on 23 March 2010, GlaxoSmithKline (GSK) Biologicals signed a provisional supply agreement (PSA) with UNICEF. Under the PSA, GSK committed to supply 30 million doses annually (annual supply commitment) from January 2012 for a period of up to 10 years.

    Consequently 15% of the AMC funds were allocated to this manufacturer according to the AMC terms and conditions. The tail price for this agreement is US$ 3.50.

    This agreement remained provisional until the candidate vaccine was deemed AMC eligible by the AMC Independent Assessment Committee (IAC) on 16 April 2010.
  • Pfizer Inc: on the same date, Pfizer Inc. signed a PSA with UNICEF. Under the PSA, Pfizer Inc. committed to supply 30 million doses (Annual Supply Commitment) annually from January 2013 for a period up to 10 years. Consequently 15% of the AMC funds were allocated to this manufacturer according to the AMC terms and conditions.

    The tail price for this agreement is US$ 3.50. This agreement remained provisional until the candidate vaccine was deemed AMC eligible by the AMC Independent Assessment Committee on 23 August 2010.

Capacity Development Period

In addition to those PSAs, GSK and Pfizer Inc. agreed to provide in total 7.2 million doses, 24.2 million doses, and 20 million doses for the years 2010, 2011 and 2012 as part of the AMC capacity development period.
 

The capacity development period is defined as the period during which suppliers develop dedicated manufacturing capacity to serve Gavi eligible countries.

Incentivise manufacturers

UNICEF opted not to award the full quantities of the Gavi Strategic Demand Forecast for 2014 in response to this first tender.

In order to incentivise manufacturers to accelerate the development of new vaccines, to contribute to the creation of a healthy market with multiple suppliers, and to enhance the possibility to access lower tail prices through future offers, quantities have been reserved for award at a later point in time.

With the conclusion of this first procurement round under the AMC, 70% of the AMC funds remained unallocated and available for successive rounds of calls for offers.

Related DocumentsStrategic Demand ForecastTarget Product Profile (TPP)Legal Agreements

Manufacturers FAQs 

IAC Members (August 2009) 

The Pneumococcal AMC Process Sheet 

Pneumococcal AMC Inflation Review Application Process 

Pneumococcal AMC: OECD GDP Deflator Data 

Pneumo SDF version 5.0 - published 13 August 2012 

Pneumo SDF version 3.0 - published 11 March 2011 

Pneumo SDF version 0.1 - published on 7 August 2009 

Pneumo SDF version 0 - published on 12 June 2009 

 

TPP Master Table 

TPP Supplementary Information 

TPP Codebook 

Master Definitions Agreement 

Procedures Memorandum 

Offer Agreement 

IAC Charter and Bylaws 

More on this topic

Following the publication of a second Call for Supply Offers on 8 April 2011, The AMC Secretariat is pleased to announce the signature of new supply agreements for Pneumococcal Vaccines under the Advance Market Commitment (AMC)

The following paragraphs are intended to provide specific information with regards to the starting date of supply, suppliers’ names, doses allocated, and amount of AMC funds that remain unallocated. The names of the participating companies are listed in alphabetical order.

On the week starting 12 December 2011, UNICEF as procurement agency on behalf of Gavi confirmed the entry into new supply agreements with GlaxoSmithKline (GSK) Biologicals and Pfizer Inc.

GSK will start supplying 18M doses annually (Annual Supply Commitment) from 2014 for a period of 10 years. The tail price for this agreement is US$3.50. Consequently 9% of the AMC funds are allocated to this manufacturer under this agreement according to the AMC terms and conditions. The total doses awarded to GSK under two supply agreements amounts to 48M annually.

Pfizer will start supplying 18M doses annually (Annual Supply Commitment) from 2014 for a period of 10 years. The tail price for this agreement is US$3.50. Consequently 9% of the AMC funds are allocated to this manufacturer under this agreement according to the AMC terms and conditions. The total doses awarded to Pfizer under two supply agreements amounts to 48M annually.

Capacity Development Period

In addition to those supply agreements, GSK and Pfizer Inc. have agreed to provide in total 9 million doses for each of the years 2012 and 2013 as part of the AMC capacity development period.

Shaping markets through providing incentives to manufacturers

UNICEF has opted not to award the full quantities of the Gavi Strategic Demand Forecast for 2016 in response to this second tender. In order to incentivize manufacturers to accelerate the development of new vaccines, to contribute to the creation of a healthy market with multiple suppliers, and to enhance the possibility to access lower tail prices through future offers, quantities have been reserved for award at a later point in time.

Status of allocation of PCV

52% of the AMC funds corresponding to US$780M remain unallocated and will be available for successive rounds of calls for offers.

Status on overall supply commitments

ManufacturerDate of signatureAnnual supply commitmentTail priceSupply start dateAMC Funds allocated
GSK23 March 201030 million dosesUS$ 3.50January 2012US$ 225 million
Pfizer Inc.23 March 201030 million doseUS$ 3.50January 2013US$ 225 million
GSK12 Dec 201118 million dosesUS$ 3.50January 2014US$ 135 million
Pfizer Inc.12 Dec 201118 million dosesUS$ 3.50January 2014US$ 135 million

Total contracted supply

Year20102011201220132014 - 2020202120222023
Doses contracted in 20107.2 million24.2 million50 million60 million60 million28 million  
Doses contracted in 2011  9 million9 million36 million36 million36 million18 million

 

Related DocumentsStrategic Demand ForecastTarget Product Profile (TPP)Legal Agreements

Manufacturers FAQs 

IAC Members (August 2009) 

The Pneumococcal AMC Process Sheet 

Pneumococcal AMC Inflation Review Application Process 

Pneumococcal AMC: OECD GDP Deflator Data 

Pneumo SDF version 3.0 - published 11 March 2011 

Pneumo SDF version 0.1 - published on 7 August 2009 

Pneumo SDF version 0 - published on 12 June 2009 

 

TPP Master Table 

TPP Supplementary Information 

TPP Codebook 

Master Definitions Agreement 

Procedures Memorandum 

Offer Agreement 

IAC Charter and Bylaws 

Following the publication of the third Call for Supply Offers on 27 August 2012, Gavi is pleased to announce two new supply agreements for the supply of pneumococcal conjugate vaccines under the Advance Market Commitment (AMC). These new supply agreements include the first decrease to the AMC Tail Price as well as additional short term supply to support the accelerated introduction in a number of countries.

The following paragraphs provide specific information with regards to awarded suppliers, the starting date of supply, doses awarded, and amount of AMC funds that remain unallocated.

On 24 July 2013, UNICEF, in its capacity as Gavi’s procurement agency, confirmed its entry into new supply agreements with GlaxoSmithKline Biologicals (GSK) and Pfizer Inc.

GSK will start supplying 24 million doses annually (Annual Supply Commitment) from 2015 for a period of 10 years. Consequently 12% of the AMC funds are allocated to this manufacturer under this agreement according to the AMC terms and conditions. The tail price for this agreement is US$3.40. The total doses awarded to GSK under its three supply agreements amounts to 720 million.

Pfizer will start supplying 26 million doses annually (Annual Supply Commitment) from 2016 for a period of 10 years. Consequently 13% of the AMC funds are allocated to this manufacturer under this agreement according to the AMC terms and conditions. The Tail Price for this agreement is US$3.40 in 2013 and US$3.30 from 2014 onwards. The total doses awarded to Pfizer under its three supply agreements amounts to 740 million.

In addition, Pfizer has agreed that the reduced Tail Prices outlined above can be applied to all doses remaining to be procured under its first and second supply agreements. To access Pfizer’s reduced Tail Price, Gavi has provided a financial guarantee for the Tail Price component, equivalent to 80% of the total contracted quantities in the period between 2013 and 2015. The standard AMC commitments of 20%, 15% and 10% in the first three years of each supply agreement will be counted towards the financial guarantee. It has also been agreed to accelerate the procurement of doses at US$ 7.00 under the new supply agreement to ensure that all doses at that price will have been procured before 2016.

Capacity Development Period

As part of these supply agreements, GSK and Pfizer Inc. have agreed to provide a total of 42 million doses during the AMC capacity development period.

Shaping markets through providing incentives to manufacturers

UNICEF has opted not to award the full quantities of the Gavi Strategic Demand Forecast for 2017 in response to this third tender and has only awarded quantities to meet the approved demand. Quantities have been reserved for award at a later point in time in order to incentivize manufacturers to accelerate the development of new vaccines, to contribute to the creation of a healthy market with multiple suppliers, and to enhance the possibility of accessing lower tail prices through future offers.

Status of AMC funding

27% of the AMC funds corresponding to US$405 million remain unallocated and will be available for later calls for offers. During Q3 2013, Gavi and UNICEF will determine if there is a need to issue a new tender based on demand presented through applications to Gavi.

Status on overall supply commitments

Manufacturer Date of signature[1]   Annual supply commitment (doses) Tail price Supply start date AMC Funds allocated
GSK 23 March 2010 30 million US$ 3.50 January 2012 US$ 225 million
Pfizer Inc. 23 March 2010 30 million US$ 3.50; reduced to $3.40 mid 2013 and $3.30 from 2014[2]   January 2013 US$ 225 million
GSK 12 Dec 2011 18 million US$ 3.50 January 2014 US$ 135 million
Pfizer Inc. 12 Dec 2011 18 million US$ 3.50; reduced to $3.40 mid 2013 and $3.30 from 2014[2]   January 2014 US$ 135 million
GSK 22 July 2013 24 million US$ 3.40 January 2015 US$ 180 million
Pfizer Inc. 22 July 2013 26 million US$ 3.40 in 2013;
US$ 3.30 from
2014 onwards
January 2016 US$ 195 million

[1] Date of signature represents the first Monday of the week during which UNICEF signed the supply agreements.
[2] Once Pfizer’s third supply agreement becomes effective, doses procured under these supply agreements will be purchased at US$3.40 in 2013 and US$3.30 from 2014 onwards.

Total contracted supply as of July 2013[3], in millions

Year2010201120122013201420152016 - 20202021202220232024TOTAL
Doses procured/ contracted in 20105.528.954606039.26047.45    600  
Doses procured/ contracted in 2011    131736363636366  360  
Doses contracted in 2013      31964.850505049.214500  
TOTAL  5.5  28.9  67  80  115  140  146  133.4  91  55.2  14  1460  

[3] It should be noted that contracts are amended annually based on actual supply and demand to ensure that the total quantity on the supply agreements remain unchanged.

30%

Pneumonia and diarrhoea account for 30% - nearly one third - of child deaths in Gavi-supported countries.

WHO/UNICEF

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