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GAVI’s vaccine supply and procurement strategy for the period 2011-2015

GAVI’s vaccine supply and procurement strategy for the period 2011-2015. Aur é lia Nguyen. Director, Policy, GAVI Alliance CSO Forum, Geneva, 6 July 2011. Overview. The market shaping goal GAVI’s pledging conference What drives GAVI’s ability to shape markets?

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GAVI’s vaccine supply and procurement strategy for the period 2011-2015

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  1. GAVI’s vaccine supply and procurement strategy for the period 2011-2015 Aurélia Nguyen Director, Policy, GAVI Alliance CSO Forum, Geneva, 6 July 2011

  2. Overview • The market shaping goal • GAVI’s pledging conference • What drives GAVI’s ability to shape markets? • Progress to date and challenges • GAVI supply and procurement strategy • Public consultation and next steps

  3. Strategic Goal 4 – the Market Shaping GoalAccess to low and sustainable prices • Achieving low and sustainable prices for GAVI-eligible countries • Increase the ability of countries to fund vaccines in the long term • Making donor money go further • Allow more children to be immunised with a given amount of resources • 2011-2015 strategic plan implementation - New supply and procurement strategy • Minimise cost to GAVI and countries • Sufficient and uninterrupted supply of quality vaccines • Fostering an environment for innovation

  4. Media coverage

  5. GAVI Market Shaping in action

  6. Factors influencing GAVI’s market shaping potential • Vaccine production: • Complex and therefore expensive technology - multiple antigens or serotypes, strict regulatory requirements • Market environment: • Number of suppliers, production capacity, ability to supply GAVI countries • GAVI’s relative market power: • The majority of vaccine procurement is conducted by UNICEF and PAHO • Relative market power - volumes, revenues and profits relative to other purchasers/markets or products.

  7. Progress to date • Sustainable quantity of supply through a diverse supplier base • Products and presentations that best meet country needs • Long-term affordable price to be sustainably financed by countries

  8. Challenges • Clarity on prioritisation of objectives, • Strategy and how to manage “micro-markets” • More active management over a longer time period • A wider toolkit of procurement approaches • Setting and communicating realistic and evidence-driven market shaping expectations

  9. Supply and procurement strategy • Revised objectives • Supply strategy • Procurement strategy

  10. 1. Revised objectives

  11. 2. Supply strategy • Creation of end-to-end roadmaps for each vaccine • “Eyes wide open” approach for market entry - affordability considerations for transitioning to full country funding • Coordinate across the Alliance members to expand the supplier base • Catalyse the design and implementation of pull mechanisms • Facilitate incremental innovations • Enhancement of GAVI’s market insight capabilities • Market characteristics, product demand, capacity, cost drivers and manufacturers’ investment strategies • Draw on expertise from Alliance members • Increased transparency • Price transparency • Interactions with countries and manufacturers on demand and supply forecasting

  12. Spectrum of involvement in supply development Lower level of commitment Higher level of commitment Collect information Lead strategy development Advocate and catalyse Implement procurement approaches to affect supply landscape Invest in supply acceleration mechanisms Identify the needs of new entrants and potential candidates that want to enter the market or expand capacity Use market intelligence capacity to determine how best to accelerate supply through either push or pull mechanisms Facilitate arrangement and coordinate activities amongst players and Alliance members (eg tech transfer, knowledge sharing) Use procurement approaches to encourage new entrants (eg leaving headroom, demand guarantees) Catalyse or broker appropriate and affordable new and follow-on products, improvement in production processes and/or vaccine delivery mechanisms

  13. 3. Procurement strategy • Use an expanded set of procurement mechanisms according to vaccine market circumstances • Buying models and pre-tender activities: single round tenders, multi-round tenders, direct negotiations, hybrid model • Procurement tactics: volume concentration or splitting of demand, back-up supply, pull mechanisms • Product portfolio management • Optimise product selection to leverage buying power • Country consultation is key

  14. What is new? • The revised vaccine supply and procurement strategy: • Applies to all vaccines • Tailored vaccine by vaccine • Longer term perspective through end-to-end roadmaps, including entry and transitioning out criteria • Responsive to increasingly complex market dynamics • More flexibility to manage the product portfolio • Leads to the definition of targets on a vaccine-by-vaccine basis

  15. Pledging Conference - What was said Vaccines as cost-effective and transformative investment Countries are committed to co-financing • CSOs are critical for advocacy, implementation, accountability More must be done in market shaping and price reduction • Immunisation helps reduce child mortality HPV and malaria on the horizon

  16. We want to hear from YOU! • Public consultation • Supply and procurement strategy is posted on GAVI website http://www.gavialliance.org/ • This is your opportunity for feedback • Next steps

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