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; 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.
