1st supply agreements

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.

2nd supply agreements

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

Manufacturer Date of signature Annual supply commitment Tail price Supply start date AMC Funds allocated
GSK 23 March 2010 30 million doses US$ 3.50 January 2012 US$ 225 million
Pfizer Inc. 23 March 2010 30 million dose US$ 3.50 January 2013 US$ 225 million
GSK 12 Dec 2011 18 million doses US$ 3.50 January 2014 US$ 135 million
Pfizer Inc. 12 Dec 2011 18 million doses US$ 3.50 January 2014 US$ 135 million

TOTAL CONTRACTED SUPPLY

Year 2010 2011 2012 2013 2014 - 2020 2021 2022 2023
Doses contracted in 2010 7.2 million 24.2 million 50 million 60 million 60 million 28 million    
Doses contracted in 2011     9 million 9 million 36 million 36 million 36 million 18 million

3rd supply agreements

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   30 million US$ 3.50; reduced to US$ 3.05 from 2017[2] 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; reduced to US$ 3.05 from 2017[2] 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; reduced to US$ 3.05 from 2017[2] 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] On 17th March 2016, GSK announced that they are reducing the tail price of their pneumococcal vaccine (PCV-10) to US$3.05 per dose from 2017.
[3] 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

Year 2010 2011 2012 2013 2014 2015 2016-2020 2021 2022 2023 2024  TOTAL
Doses procured/ contracted in 2010 5.5 28.9 54 60 60 39.2 60 47.4 5     600
Doses procured/ contracted in 2011     13 17 36 36 36 36 36 6   360
Doses contracted in 2013       3 19 64.8 50 50 50 49.2 14 500
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.

4th supply agreements

Following the publication of the fourth Call for Supply Offers on 6 June 2017, Gavi is pleased to announce one new supply agreement for the supply of pneumococcal conjugate vaccines under the Advance Market Commitment (AMC). This new supply agreement includes another decrease to the AMC Tail Price for the multi-dose vial as well as additional short term supply to support an increase in demand triggered primarily by India’s decision to introduce PCV in a number of low income States through Gavi catalytic support limited in both time and value, expected to span 2017 – 2019 and consistent with the Gavi board decisions on support for India.

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

On 5th April 2018, UNICEF, in its capacity as Gavi’s procurement agency, confirmed its entry into a new supply agreement with Pfizer Inc. Pfizer will start supplying 19 million doses annually (Annual Supply Commitment) from 2018 for a period of 10 years. Consequently, 9.5% 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$2.95 for the 4-dose vial presentation from 2018 onwards. The total doses awarded to Pfizer under its four supply agreements amounts to 930 million.

In addition, Pfizer has agreed that the Tail Price outlined above can be applied to all doses (supplied in a 4-dose vial) remaining to be procured under its first, second and third supply agreements.

SHAPING MARKETS THROUGH PROVIDING INCENTIVES TO MANUFACTURERS

UNICEF has opted not to award the full quantities of the Gavi Strategic Demand Forecast for 2020-2021 in response to this fourth 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 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 of accessing lower tail prices through future offers.

STATUS OF AMC FUNDING

18.5% of the AMC funds corresponding to US$262.5 million remain unallocated and will be available for later calls for offers. Gavi and UNICEF will determine if there is a need to issue a new call for supply offers based on demand presented through applications to Gavi.

STATUS ON OVERALL SUPPLY COMMITMENTS

Manufacturer

Date of signature

Annual supply commitment (doses) Tail price Supply start date AMC Funds allocated
GSK 23 March 2010 30 million US$ 3.50; reduced to US$ 3.05 from 2017[1] 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. Further reduced to $3.05 from 2017 and $2.95 from 2018 for the 4-dose vial only[2] January 2013 US$ 225 million
GSK 12 Dec 2011 18 million US$ 3.50; reduced to US$ 3.05 from 2017[1] 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. Further reduced to $3.05 from 2017 and $2.95 from 2018 for the 4-dose vial only[2] January 2014 US$ 135 million
GSK 22 July 2013 24 million US$ 3.40; reduced to US$ 3.05 from 2017[1] January 2015 US$ 180 million
Pfizer Inc. 22 July 2013 26 million US$ 3.40 in 2013;
US$ 3.30 from
2014. Further reduced to $3.05 from 2017 and $2.95 from 2018 for the 4-dose vial only[2]
January 2016 US$ 195 million
Pfizer Inc. 5 April 2018 19 million US$2.95 for the 4-dose vial January 2018 US$142.5 million

[1] On 17th March 2016, GSK announced that they are reducing the tail price of their pneumococcal vaccine (PCV-10) to US$3.05 per dose from 2017.
[2] Following various price reduction announcements from Pfizer, doses procured under Pfizer supply agreements were purchased at US$3.40 in 2013 and US$3.30 from 2014 onwards. In 2017, doses procured under Pfizer supply agreements were purchased at US$3.05 for the 4-dose vial and from 2018 onwards, the price is further reduced to US$2.95 for the 4-dose vial.

TOTAL CONTRACTED SUPPLY AS OF APRIL 2018[3], IN MILLIONS

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018-2020 2021 2022 2023 2024-2027 TOTAL
Doses contracted in 2010 5.5 28.9 54.0 53.5 45.9 40.6 57.7 60.0 180 54.9 19.0     600
Doses contracted in 2011     13.0 11.7 33.8 35.1 31.9 36.0 108 36.0 36.0 18.5   360
Doses contracted in 2013       3.0 9.0 43.8 44.6 80.3 150 50.0 50.0 57.9 11.4 500
Doses contracted in 2018                 57 19 19 19 76 190
Grand Total  5.5 28.9 67.0 68.2 88.8 119.5 134.2 176.3 495 159.9 124.0 95.4 87.4 1650

[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 remains unchanged.

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