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GAVI Update

Washington, DC, 15-16 July 2003

>>Back to the 11th GAVI Board Meeting

6. Vaccine procurement process

  • Board members expressed concern about reported price increases for the combination vaccines. While it is understood that prices will only reduce once there is competition in production and supply, increased demand should have the effect of lowering price over time.

  • According to UNICEF Supply Division, vaccine prices are going up for several reasons. One, manufacturers are increasing their investments in capacity, and the amortization of this needs to be done over a shorter time than normal, given the accelerated introduction of new vaccines under GAVI. Another is the weakening of the US dollar - many vaccines are supplied from Europe and UNICEF Supply Division requests prices in US dollars, as it is a US dollar-based organization.

  • It was recognized that the maturity of the combination vaccines, as indicated by competition in production and lower prices, will take longer than the current round of GAVI approvals. The Vaccine Provision Project (VPP) will prepare a 'lessons learned' document once the 2004-06 procurement round is complete.


The Board:

    6.1 Requested the VPP to come back to the Executive Committee with a proposal for specific actions GAVI can take in the premature market environment to ensure vaccine supply at affordable prices.

    6.2 Requested the Secretariat to organize a teleconference of the VPP Oversight Committee in the near future to address the Board's concerns about vaccine pricing. [The first teleconference took place on 22 July 2003.]

>>Back to the 11th GAVI Board Meeting

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