A CGD Working Group produced an economic and legal framework for funds to incentivize vaccine development. The G-7 Finance Ministers endorsed the approach and five donors (Canada, Italy, Norway, UK and Russia, and the Gates Foundation) committed $1.5 billion to create an incentive for a vaccine against the strains of pneumococcus disease prevalent in low-income countries. For updates, see Advance Market Commitments for Vaccines, a joint effort of the GAVI Alliance and the World Bank.
***
 Making a commitment in advance to buy vaccines if and when they are developed would create incentives for industry to increase investment in research and development. New commercial investment would complement funding of research and development (R&D) by public and charitable bodies, accelerating the development of vital new vaccines for the developing world.
This report presents the proposal from theory to practice, by showing how a commitment can be consistent with ordinary legal and budgetary principles. A draft contract term sheet is included, highlighting the key elements of a credible guarantee.
This generation can leave an historic legacy. By creating arrangements that devote the same scientific effort to diseases of the poor as we put into diseases of the rich, we can make a lasting contribution to the defeat of poverty.
Newest
Popular
Experts
Publications
Events
Multimedia
-
Would an Advance Market Commitment work in climate finance? CGD visting senior associate Jan von der Goltz joined a panel on Advance Market Commitments (AMCs) at the Marketplace on Innovative Financial Solutions for Development in Paris, March 4, 2010. (For a round-up of the best ideas from the Marketplace, click here. Jan assessed the idea of extending the AMC concept – which CGD pioneered for the vaccine market – to climate finance. The takeaway message: AMCs are powerful tools in dealing with market failure – but they are complex financing structures, and must be tailored to the challenge at hand. It makes little sense to transplant the original AMC structure into the climate field 1:1. Rather, true to the spirit of the AMC, donors should look at the challenges in financing a given climate project, and design an innovative financing scheme that fits them.
-
Donors are considering committing in advance to purchase vaccines against diseases concentrated in low-income countries to spur research and development on vaccines for neglected diseases. How much money is needed? The authors of this paper find that a commitment comparable in size to the average sales of recently launched commercial products (adjusted for lower marketing costs)—about $3 billion per disease when products are at a relatively early stage in development —would be a highly cost-effective way to address major killers, such as malaria, tuberculosis and HIV/AIDS. The paper includes a link to a Web-based spread sheet for readers to conduct their own sensitivity analysis.Learn more
-
New medicines are usually financed by a mixture of public funding by governments, philanthropic giving, and investment by private firms. Private investment is especially important in paying for and managing the later stages of clinical trials, regulatory approval, and investment in manufacturing capacity. But for diseases that mainly affect people in developing countries, the prospective sales market is tiny—and not sufficient to justify commercially the large scale investment that is needed to develop new products.
An advance market commitment to accelerate the development of vaccines for diseases concentrated in developing countries, donors could make a binding commitment to pay for a desired vaccine if and when it is developed. This advance market commitment would mean firms could invest in finding a vaccine with the confidence that if they succeed there would be a market for the product.
-
Making Markets for Vaccines: Ideas to Action presents the proposal from theory to practice, by showing how a commitment can be consistent with ordinary legal and budgetary principles. A draft contract term sheet is included, highlighting the key elements of a credible guarantee.
-
On Thursday April 7, 2005 - World Health Day - CGD launched a report with the potential to save millions of lives. Making Markets for Vaccines: Ideas to Action presents an achievable approach to creating incentives for pharmaceutical and biotechnology manufacturers in the rich world to invest in the research and development of vaccines for diseases that mostly affect the poor world.
-
Making Markets for Vaccines: Ideas to Action presents the proposal from theory to practice, by showing how a commitment can be consistent with ordinary legal and budgetary principles. A draft contract term sheet is included, highlighting the key elements of a credible guarantee.
-
Donors are considering committing in advance to purchase vaccines against diseases concentrated in low-income countries to spur research and development on vaccines for neglected diseases. How much money is needed? The authors of this paper find that a commitment comparable in size to the average sales of recently launched commercial products (adjusted for lower marketing costs)—about $3 billion per disease when products are at a relatively early stage in development —would be a highly cost-effective way to address major killers, such as malaria, tuberculosis and HIV/AIDS. The paper includes a link to a Web-based spread sheet for readers to conduct their own sensitivity analysis.Learn more
-
Would an Advance Market Commitment work in climate finance? CGD visting senior associate Jan von der Goltz joined a panel on Advance Market Commitments (AMCs) at the Marketplace on Innovative Financial Solutions for Development in Paris, March 4, 2010. (For a round-up of the best ideas from the Marketplace, click here. Jan assessed the idea of extending the AMC concept – which CGD pioneered for the vaccine market – to climate finance. The takeaway message: AMCs are powerful tools in dealing with market failure – but they are complex financing structures, and must be tailored to the challenge at hand. It makes little sense to transplant the original AMC structure into the climate field 1:1. Rather, true to the spirit of the AMC, donors should look at the challenges in financing a given climate project, and design an innovative financing scheme that fits them.
-
New medicines are usually financed by a mixture of public funding by governments, philanthropic giving, and investment by private firms. Private investment is especially important in paying for and managing the later stages of clinical trials, regulatory approval, and investment in manufacturing capacity. But for diseases that mainly affect people in developing countries, the prospective sales market is tiny—and not sufficient to justify commercially the large scale investment that is needed to develop new products.
An advance market commitment to accelerate the development of vaccines for diseases concentrated in developing countries, donors could make a binding commitment to pay for a desired vaccine if and when it is developed. This advance market commitment would mean firms could invest in finding a vaccine with the confidence that if they succeed there would be a market for the product.
-
On Thursday April 7, 2005 - World Health Day - CGD launched a report with the potential to save millions of lives. Making Markets for Vaccines: Ideas to Action presents an achievable approach to creating incentives for pharmaceutical and biotechnology manufacturers in the rich world to invest in the research and development of vaccines for diseases that mostly affect the poor world.
-
Advance Market Commitments for Vaccines Working Paper and Spread Sheet - Working Paper 98
- Aug 31, 2006
Donors are considering committing in advance to purchase vaccines against diseases concentrated in low-income countries to spur research and development on vaccines for neglected diseases. How much money is needed? The authors of this paper find that a commitment comparable in size to the average sales of recently launched commercial products (adjusted for lower marketing costs)—about $3 billion per disease when products are at a relatively early stage in development —would be a highly cost-effective way to address major killers, such as malaria, tuberculosis and HIV/AIDS. The paper includes a link to a Web-based spread sheet for readers to conduct their own sensitivity analysis.Learn more
-
Making Markets for Vaccines - Ideas to Action (Brief)
- Apr 7, 2005
New medicines are usually financed by a mixture of public funding by governments, philanthropic giving, and investment by private firms. Private investment is especially important in paying for and managing the later stages of clinical trials, regulatory approval, and investment in manufacturing capacity. But for diseases that mainly affect people in developing countries, the prospective sales market is tiny—and not sufficient to justify commercially the large scale investment that is needed to develop new products.
An advance market commitment to accelerate the development of vaccines for diseases concentrated in developing countries, donors could make a binding commitment to pay for a desired vaccine if and when it is developed. This advance market commitment would mean firms could invest in finding a vaccine with the confidence that if they succeed there would be a market for the product.
-
Making Markets for Vaccines: Ideas to Action
- Apr 7, 2005
Making Markets for Vaccines: Ideas to Action presents the proposal from theory to practice, by showing how a commitment can be consistent with ordinary legal and budgetary principles. A draft contract term sheet is included, highlighting the key elements of a credible guarantee.
-
Making Markets for Vaccines: from ideas to action
- Apr 7, 2005
On Thursday April 7, 2005 - World Health Day - CGD launched a report with the potential to save millions of lives. Making Markets for Vaccines: Ideas to Action presents an achievable approach to creating incentives for pharmaceutical and biotechnology manufacturers in the rich world to invest in the research and development of vaccines for diseases that mostly affect the poor world.
|
|
Print
Share
