The market shaping goal

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Shape markets for vaccines and other immunisation products

The Market Shaping Goal

Credit: Gavi/2014/Thomas Kelly.

Gavi aims to help make vaccine markets work better for lower-income countries. This means putting in place mechanisms that allow manufacturers to plan production based on known demand and donors to maximise their investments.

Most importantly, it permits developing countries to buy suitable vaccines at prices they can afford and to eventually transition out of our support.

In the 2016–2020 period, the Alliance is well-positioned to take bolder action in its market shaping efforts across existing and new product markets. Our market-shaping activities have been extended beyond vaccines to include other immunisation products, such as cold chain equipment.

We will continue to deploy successful tools that have yielded results thus far, while improving key processes such as procurement decision-making and coordination among partners.

STRATEGIC OBJECTIVES

Market shaping objectives 2016-20
  • The healthy markets objective: the Alliance aims to achieve moderate or high levels of “healthy market dynamics” in six markets.

We have also set specific targets for each market in terms of supply, cost and innovation:

  • Ensure adequate and secure supply (the supply objective);
  • Reduce prices to an appropriate and sustainable level (the cost objective) 
  • Incentivise development of suitable and quality products (the innovation objective).

US$ 1 = US$ 18

A study in Health Affairs covering 73 Gavi-supported countries over the 2011–2020 period shows that, for every US$ 1 spent on immunisation, US$ 18 are saved in healthcare costs, lost wages and lost productivity due to illness. If we take into account the broader benefits of people living longer, healthier lives, the return on investment rises to US$ 48 per US$ 1 spent.

Ozawa S, Clark S, Portnoy A et al. Return on investment from childhood immunizations in low- and middle-income countries, 2011-20, Health Affairs 2016

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