A multi-billion dollar vaccine deal funded by aid

The Advance Market Commitment (AMC) is an innovative health financing mechanism sponsored by four G8 governments - Italy, Canada, the United Kingdom, Russia - Norway and the Gates Foundation. Much of the discussion surrounding the design the AMC over the last few years has taken place behind closed doors. Development Today’s exclusive coverage has focused on the problem of the lack of transparency, how the mechanism will work, what it will achieve and what it will really cost.

Administered by GAVI, the AMC involves a USD 1.5 billion subsidy aimed at incentivising drug companies to invest in the production of vaccines for pneumococcal diseases, a major killer of children in the developing world. Four drug companies have so far expressed interest in joining the AMC, which will mean entering into a ten-year supply commitment with a maximum price per dose fixed by the donors. According to GAVI, the AMC will save 7 million lives by 2030, assuming vaccine manufacturers continue to supply pneumococcal vaccine for ten more years. The total cost of the AMC project will be much higher than the USD 1.5 billion subsidy with the rest of the costs to be covered by GAVI through funding from donors.

Development Today revealed that Norway played a crucial role in forcing down the vaccine price set by the AMC donors from USD 10 to USD 7 per dose, and we have tried to explore the implications of this 30 per cent drop in price.

Here is an overview of headlines:

• Donors set in motion second AMC initiative (Read
• USD 1.5 billion vaccine scheme to cost donors billions more (Read)
• Vaccine dispute. GAVI brushes aside criticism (Read)
• GAVI denies cheaper AMC vaccines will save more lives (Read)
• PM Stoltenberg pushed G8 donors to cut vaccine subsidies to drug industry (Read)
• MSF: success of AMC depends on increased competition (Read)
Letter to the Editor by Norwegian Foreign Ministry: AMC, one of many initiatives (Read)
• Unsweetening the AMC deal - Editorial (Read)
• Radical simplification of health aid architecture (Read)
Opinion by Donald Light: Missing the real issue about the pneumo AMC (Read)
• Secrecy surrounds AMC aid deal for drug industry (Read)
Opinion by Tido von Schoen-Angerer: Questioning the 1.5 billion dollar vaccine deal (Read)
• Donors want more facts before finalising USD 1.5b subsidy for vaccine industry (Read)
• USD 1.5b package aims to boost supply of new vaccine (Read)

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