Healthy markets for vaccines and other immunisation products allow manufacturers to plan production based on known demand, donors to maximise their investments and, most importantly, lower- and middle-income countries to buy suitable products at prices they can afford.
Market forces do not always serve low-income countries well. Historically, uncertain funding and demand for vaccines led to manufacturers not having the incentive to invest in new products at affordable prices for developing countries.
As a result, there was often a long time lag between the time a vaccine was available in rich countries and when it was introduced in LMIC countries.
Gavi was created to address these market failures. Gavi’s fourth strategic goal to ensure sustainable, healthy market dynamics for immunisation-related product and to incentivise innovation seeks to further Gavi’s mission to “leave no-one behind with immunisation.” Through our Market Shaping strategy, we make proactive efforts to improve the health of markets for vaccines and other immunisation products.
The market shaping strategy has three priorities:
Ensure healthy markets for vaccines and related products.
In 2015, the Gavi Secretariat, UNICEF and the Bill & Melinda Gates Foundation jointly developed a “healthy markets framework”.
The framework helps us to develop common strategies for vaccine markets across the Vaccine Alliance through the development of a clear and consistent definition of market health. Its main aims include: establishing a common way of thinking about market health, communicating Alliance assessments of individual markets, and improving trade-offs between how different market elements were analysed.
For the 2021-2025 period, the Healthy Markets Framework assesses overall market health by taking demand health directly into account, in addition to doing so through supply dynamics and innovation perspectives. Additionally, the new iteration of the HMF is designed to reflect a greater emphasis on long-term market views, in alignment with the Gavi’s overall objectives for this period.
VIPS represents an unprecedented three-year collaboration between the Gavi Secretariat, World Health Organization (WHO), Bill & Melinda Gates Foundation (BMGF), United Nations Children’s Fund (UNICEF) and PATH – known as the VIPS Alliance – to develop a single integrated framework to evaluate and prioritise vaccine product innovations and to drive these innovations forward.
Long-term strategic demand scenarios offer visibility into future market needs to Gavi stakeholders.
Market Shaping roadmaps help guide Gavi’s market shaping efforts by analysing the dynamics of each vaccine or other immunisation product market.
Detailed product profiles and the Cold Chain Equipment Technology Guide help countries decide which vaccine presentations or cold chain equipment are the best “fit” for their immunisation programmes.
Gavi's fourth strategic goal is to ensure sustainable, healthy market dynamics for vaccines and immunisation-related products; to incentivise innovation for the development of suitable vaccines; and to scale-up innovative immunisation-related products.
In 2017, a framework by which to assess whether Gavi’s market shaping activities caused unintended consequences in vaccine markets was developed. In accordance with the externalities framework, an external party conducted the first monitoring phase, driven by quantitative data and qualitative consultations with a wide variety of stakeholders. This public summary outlines the findings of this phase of monitoring.