Lessons learned in shaping vaccine markets in low-income countries: A review of the vaccine market segment supported by the GAVI Alliance
Market Impact
Author: Shawn A.N. Gilchrist and Angeline Nanni
Organization: The GAVI Alliance
Year: November 2012
Document Type: Peer-reviewed article
Abstract/Summary: The Global Alliance for Vaccines and Immunization (GAVI) ranks near the top of multilateral organizations in aid effectiveness (United Kingdom Department for International Development 2011). It is therefore not surprising that GAVI was recently able to raise an additional $4.3 billion dollars for immunization in the world’s poorest countries bringing total funding for 2011–15 to $7.6 billion (GAVI Alliance 2011a). And yet, paradoxically, GAVI’s critics have argued that GAVI’s aid is not effective enough, and that GAVI should be adopting different strategies to lower prices of vaccines (Arie 2011). Indeed, GAVI has always believed it could lower prices in the vaccine market through a number of market-shaping strategies. But to date, GAVI’s success in reducing prices in the market, low enough for the poorest countries to assume full financial responsibility for immunization, has been limited. By 2015, it is projected that a majority of GAVI-eligible low-income countries (LICs) will be able to co-finance only US$0.20/dose for new vaccines, with GAVI assuming the balance (Cornejo et al. 2011). This article examines the characteristics of the global vaccines market before and after GAVI to better understand why GAVI’s specific strategies to reduce vaccine prices did not have the desired outcomes.
Disease/Therapeutic Area: Vaccines
Geography:
Income Classification (World Bank):
Market Shortcomings:
Focus Areas:
Interventions:
Keywords: developing country vaccine market, economics of vaccines, global immunization policy, donor assistance policies, new vaccine introduction strategies
Global Health Market Dynamics 