Singapore, Nov 19, 2009: The Global Alliance for Vaccines and Immunization (GAVI) said its efforts over the last ten years has prevented 4 million deaths.
GAVI said this was made possible due to the increasing impact of the GAVI Alliance on the vaccine market. And as a result, the price of one of the major combination vaccines, the pentavalent, is falling considerably, enabling GAVI's partners to vaccinate millions of more children in the developing world.
News of the unprecedented progress was announced in Hanoi, Vietnam just before the GAVI Partners' Forum, which unites some 400 participants from all over the world including ministers of health, donors, civil society and industry representatives, researchers and development experts.
"This is the GAVI effect at work: encouraging and pooling growing demand from countries, attracting new manufacturers and increasing competition to drive down prices."
Julian Lob-Levyt, CEO, GAVI Alliance"This is the GAVI effect at work: encouraging and pooling growing demand from countries, attracting new manufacturers and increasing competition to drive down prices," said GAVI CEO Julian Lob-Levyt.
"The price drop has come later than we had hoped and it needs to fall further. But this is a clear indication that our market-shaping efforts work."
Dr Lob-Levyt stated that pentavalent is projected to be GAVI's single biggest expenditure through to 2015, accounting for some 40% of vaccine spending.
"Its price, and those of other GAVI vaccines, is the major determinant of the future support that the GAVI Alliance will be able to provide to countries."
The majority of vaccines financed through GAVI is purchased by Alliance member UNICEF.
A recent tender for pentavalent vaccine has shown a significant price drop with the weighted average price for 2010 falling below $ 3, a decrease of almost 50 cents per dose on the 2009 price. This will create approximately $ 55 million in savings in 2010 and enable GAVI to finance the immunization of 6.3 million more children.
Data presented by Ibrahim El-Ziq, Chief of the Immunization Center at UNICEF's Supply Division, indicated that by 2010 his agency expects to pay US$ 2.94 per dose for pentavalent vaccine.
It is widely considered the gold standard for childhood immunization because it delivers protection against five diseases: Hib (Haemophilus influenzae type b), diphtheria, pertussis, tetanus and hepatitis B. As recently as 2004, the vaccine cost $ 3.65 per dose. Dr El-Ziq said the price is expected to decline even further, to $ 2.83 per dose by 2012, for a total reduction of 22% over an eight-year period.
"This price drop is no accident, but rather the result of a strategy to leverage the purchasing power of hundreds of millions of people," said UNICEF Deputy Executive Director Saad Houry.
"Clearly, industry understands and responds to a market, regardless of whether that market is in poor or rich countries. The Alliance's model is beginning to work, and we are optimistic that the trend will continue, as competition and demand increase over time."
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