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Global Health Innovation and Access: Sustainable Business Models
CGD—in collaboration with the broader global health community, health economists, industry partners, and policymakers—is helping develop and drive an evidence-based policy agenda to make health product markets work for the poor. For millions of people around the world, life-saving drugs remains out of reach because economic incentives to drive their development and commercialization are lacking. CGD research and analysis systematically works to address market failures that span the entire value chain, from early stage pharmaceutical research to market competition, quality assurance, and supply chain efficiency.
Upstream, CGD research aims to kickstart R&D for these neglected diseases while simultaneously ensure affordable access once products are approved for use. Building on CGD’s Advance Market Commitment model, CGD’s Market-Driven Value-Based Advancement Commitment (MVAC) model—developed in partnership with the Office of Health Economics for the specific case of TB drugs—measures future demand in middle-income countries through health technology assessment (HTA), uses country advance purchase commitments—set at locally affordable prices—to resolve future market uncertainty, and crowds in private-sector capital to drive the priority research.
In recent years, many global health institutions have adopted eligibility and transition frameworks for the countries they support, generating questions about how these frameworks apply in practice—and whether global health progress will be put at risk through premature or poorly planned transition processes.
This paper focuses on the role that price transparency may play in the efficient and effective procurement of medicines by middle- and low-income countries. Will making prices publicly available make procurement more efficient and cost-effective medicines more accessible? We conclude that transparency of the procurement process significantly lowers costs by encouraging bidders.