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2. AMDS. 3. AMDS. Introduction and Purpose of the GPRM. The Global Price Reporting Mechanism is a database that consolidates information (price, volume,
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1. Price Reporting Mechanism (PRM):Lessons learnt and how to use the evidence from the PRM Technical Briefing Seminar for Consultants on Procurement and Supply Management for HIV, TB and Malaria
30 January 2006
Copenhagen
Peter Graaff, AMDS, HIV
2. 2 AMDS
3. 3 AMDS Introduction and Purpose of the GPRM The Global Price Reporting Mechanism is a database that consolidates information (price, volume,
) of ARV drugs
Information on other drugs (such as TB or malaria drugs) is included when available but is not actively sought
4. 4 AMDS Background Procurement decision makers should know their potential suppliers and the price they should expect to pay for their products
Existing information sources include:
"Sources and prices" by UNICEF/WHO/MSF/UNAIDS
"Untangling the web" by MSF
The GFATM Price Reporting Mechanism
Indicative prices announced by procurement organisations (IDA) or foundations (CHAI)
With exception of the GFATM Price Reporting Mechanism these information tools record quotes by suppliers and don't record volumes transacted.
The GFATM Price Reporting Mechanism has real transaction prices and volumes transacted but
Suffers from serious underreporting
GFATM represents only part of all transactions
5. 5 AMDS Objectives of the GPRM Put a significant volume of developing country transaction prices of ARVs in the public domain
Inform procurement decisions by characterising the different players (suppliers /buyers), their weight in the market and the price they are obtaining/charging
Collect essential information to forecast the future of the developing country ARV market
6. 6 AMDS Outcomes: 1) Process Cooperation of main partners (GFATM, UNICEF, IDA, CPS) secured
Cooperation of secondary partners (MSH, JSI, Clinton Foundation CHAI, Crown Agents, CHMP) secured and growing
No negative feedback from big pharmaceutical companies, positive feedback from several generic companies
7. 7 AMDS Outcomes: 2) Products User-friendly web based searchable database developed and online since June 2005
The GPRM is the biggest database of ARVs transaction prices available in the public domain
More than USD 160 million of procurement recorded, or about 1/3 of ARV transactions in developing countries
FTP protocol enabling main partners to upload data automatically operational
Automated report generator operational
Quarterly summary report launched
8. 8 AMDS Global price reporting mechanism
9. 9 AMDS Quarterly summary report
10. 10 AMDS Strengths Process Strength
Consolidation of WHO's collaboration with significant partner organizations
Technical strengths
Size, coverage, details and volume of the database
Easy access and report generation
11. 11 AMDS Weaknesses The database contains only wholesale price
Incoterms are inconsistently reported
Sampling bias: most providers of data are rational, cost effective procurement organizations
Data verification limited
12. 12 AMDS 2006 planning for summary report releases
13. 13 AMDS