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GAVI’s Supply & Procurement Strategy

GAVI’s Supply & Procurement Strategy. Daniel Berman 5 July 2011. Task Team. I participated in this task team in a personal capacity Members were NOT allowed to represent organisations

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GAVI’s Supply & Procurement Strategy

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  1. GAVI’s Supply & Procurement Strategy Daniel Berman 5 July 2011

  2. Task Team • I participated in this task team in a personal capacity • Members were NOT allowed to represent organisations • First meetings by telephone and in person May 2010- Sept 2010 were dominated by McKinsey Consultants with pro-Big Pharma perspective • I resigned in November 2010 after receiving documents with draft strategy, wrote letter to head of committee explaining concerns • Motivated by fear of being used…

  3. Resignation Letter Nov 2010 • “I do not believe that this process will yield the strategic recommendations necessary to significantly reduce vaccine prices while maintaining supply security…..The Task Team has been organised in a manner that impedes alternative perspectives and strategy development.” (McKinsey, no access to data etc..) • “Lack of impact from Task Team members’ suggestions…. • clear call from several Task Team members to include price transparency (but not in document)” • “Not acknowledging two divergent possibilities: • make the market attractive to MNCs so that they agree ‘to play’ in the market. Pneumo AMC: US$1.5 billion subsidy plus US$3.50 per dose. • platform approach: that WHO has supported in conjunction with PATH, IVI, NVI and other partners. MenA conjugate: US$0.40 per child (1 dose)”

  4. PPC meeting NEW public comment version • Draft Strategy sent to PPC • Few days before, shared with PPC members • As former member of committee I sent comments to all PPC members • Committee supported many changes and asked for redraft and public comment period • PPC refused to recommend to July Board • Comment period began yesterday goes until 24 July

  5. Positive Price transparency New procurement strategies TPP – Bulky impractical products not welcome! Support incremental innovations (no cold chain, less doses etc..) Call for secretariat to get involved in actively shaping market Bring together push and pull mechanisms Competition indirectly supported Not great No distinction between hi and low cost producers Not explicit about competition as a critical strategy Analysis of vaccine market: revenue small from DCs?? No linkage between co-financing and price No strategies for overcoming know-how gaps, patents/licensing No conditions for volume concentration: AMC versus MenA (without low price not interesting) Number developed and DC suppliers??

  6. Unicef pricing database --PENTA prices (each child 3 doses)

  7. CS Steering Committee: Actions? • Inform members of our constituency and members of other constituencies • Encourage people/organisations to submit comment • DC manufacturers • Recipient country delegations • Others??? • Do a SC submission • Process?? Small group

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