VACCINE FINANCING: THE GAVI VIEW

Saturday, 11th of June 2011

VACCINE FINANCING: THE GAVI VIEW

Best viewed at http://www.gavialliance.org/resources/Financing_Country_Demand_GAVI_Alliance_August_2010.pdf

© UNICEF INDRIAS GETACHEW

The GAVI Alliance, a public-private global health partnership, was formed in 2000 to save children’s lives and protect people’s health by increasing access to immunisation in the world’s poorest countries.Over the last decade, GAVI has committed US$ 4 billion in funding to country-led initiatives in the world’s poorest regions.

This performance-driven funding has accelerated access to new and underused vaccines in developing countries.

As a result, more than 250 million children have been immunised against life-threatening diseases and 5.4 million premature deaths have been prevented. Making new vaccines available at an affordable price to the world’s poorest

GAVI secures predictable financing, develops rigorous country demand estimates, and pools vaccine purchases. Through this business model, the Alliance has contributed to reinvigorating the vaccine market with lower prices and the development of appropriate vaccines for target countries.

GAVI’s market-shaping effect also engages developing country manufacturers – more than a third of GAVI-funded vaccines are provided by these producers. GAVI expects further savings of at least US$ 1 billion over the next six years due to increasingly reduced vaccine costs.

GAVI is progressively focusing on the 58 poorest countries, which comprise almost 80% of the world’s extreme poor (those living on less than US$ 1.25 a day) and 81% of the world’s unimmunised children. These developments and the remarkable successes achieved over the past decade speak to the efficiency of the GAVI model and illustrate the power of immunisation as a cost-effective life-saving strategy to meet the Millennium Development Goals (MDGs).

With new vaccines now available against the world’s top two childhood killers, GAVI has the historic opportunity to accelerate its impact and further address the remaining global health inequity.

Under the 2010 AMC supply agreements, companies will receive an additional payment of US$ 3.50 per dose for approximately 20% of doses provided. This additional payment is funded by the AMC donor commitments.

Tackling the two biggest childhood killers

Despite the significant progress that has been made in reducing childhood mortality, more than two million children continue to die each year from vaccine-preventable diseases.

Most of these deaths occur in low-income countries. Pneumonia and diarrhoea are the two leading killers, causing 40% of all childhood deaths. Pneumonia is responsible for close to one in four child deaths, more than AIDS, malaria and measles combined.

Diarrhoeal diseases are the second leading cause of death in children under five years old. Rotavirus is the principle cause of acute diarrhoea. Both pneumonia and diarrhoea can be tackled with new vaccines against pneumococcal disease and rotavirus. However, neither vaccine is widely available in poor countries despite the increasing demand by their governments.

“Country demand for new vaccines, especially against pneumonia and diarrhoeal diseases, has never been higher.”

Dr Richard Sezibera, Minister of Health of Rwanda

The opportunity and challenge for 2010-2015

The unprecedented opportunity exists to save millions of lives by extending GAVI’s support. GAVI estimates total programme spending between 2010 and 2015 of US$ 7 billion for existing programmes and new vaccines. This requires approximately US$ 4.3 in new donor contributions.

On 6 October 2010, GAVI is holding a Resource Mobilisation Meeting as a first opportunity for donors to pledge US$ 1.1 billion for the 2010-2012 period. In addition, long-term commitments are being sought for the period from 2013-2015 in which a further US$ 3.2 will be needed.

With full funding, GAVI can immunise more than 110 million children in 47 countries with pneumococcal vaccines, 58 million children in 41 countries with rotavirus vaccines, and ensure the complete roll-out of pentavalent vaccine. GAVI also aims to introduce new vaccines against human papillomavirus (HPV) which causes cervical cancer in women, Japanese encephalitis, meningitis, rubella and typhoid.

This additional funding could prevent 4.2 million future deaths, mostly children. This would have a significant impact on achieving the Millennium Development Goals, and move the international community closer to achieving the goals of the G8 leaders’ recent Muskoka Initiative aimed at improving maternal, newborn and child health.

According to a G8 report that gauges the effectiveness of donor contributions on improving maternal and child health, it is estimated that 100% of GAVI support benefits mothers and young children in developing countries and impacts directly on achieving MDGs 4 and 5 to reduce child mortality and improve women’s health.

GAVI's funding challenge 2010-2015: approx. US$ 4.3 billion

Required 2010-2012 US$ 1.1 billion

Resources available US$ 2.7 billion

Required 2013-2015 US$ 3.2 billion

Total programme spending: US$ 7 billion

Information current as of August 2010

We must keep up the momentum.

Millions more lives can be saved.

GAVI Alliance

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1202 Geneva

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