15th GAVI BOARD MEETING
Geneva, Switzerland, 28-29 April 2005
Summary Report

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5. Advance market mechanisms

• It is clear that industry needs to receive indications about future demand for a vaccine – at the appropriate time when they need it to make their decisions.
• The proposal provides a foundation for thinking on the possibility of advance market mechanisms. However, a number of issues must be further explored. For example: is it possible to establish in advance the price of a future vaccine? Can suppliers be legally held to an agreement if their actual development cost is not recovered? Would this mechanism really encourage manufacturers by reducing their perceived risk? How would a sole source arrangement work?
• Advance market mechanisms may only be feasible once the ‘scientific barriers’ are overcome. This is especially relevant for HIV and malaria vaccines.
• Considering the huge malaria disease burden it will be important for GAVI to maintain a close watch on malaria vaccine development.
• The potential for advance market mechanisms to speed vaccine development may be enhanced if middle income countries are also considered in the demand scenarios.

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