#Vaccine pricing and adaptation in developing countries
Daniel Berman, Deputy Director at Médecins Sans Frontières Access Campaign presented few weeks ago at the World Vaccine Congress in Washington about vaccine pricing and adaptation in developing countries.
MSF annually vaccinates over 10 million people around the world. Mr. Berman said that MSF considers the provision of specific prices for specific products by UNICEF, rather than just average prices, as a landmark improvement in price reporting and transparency.
This helps improve understanding of the dynamics of vaccine pricing in the global marketplace. MSF looks at the potential role of vaccine adaptation in increasing the reach of immunization services to difficult-to-reach populations. They are also interested in making the vaccines easier to use in field settings.
Over time, there is a rising cost of immunizing each child. Some recent additions to the WHO recommended routine immunization schedule (Hep B in 2004, Hib in 2006, Pneumo in 2010, Rotavirus and Rubella in 2011), have brought the cost to just under $40 per child. When comparing this price with the average cost today in countries like the US (~$1000), this price looks good, but these increases are a major reason for concern over the sustainability of childhood vaccinations globally.
GAVI has made very good progress, but in Mr. Berman’s opinion, they have not brought down prices enough. In fact, according to their own commissioned independent review, reduction of prices is one of GAVI’s continuing major challenges. Unless prices decrease, GAVI will be facing a deficit. From the country perspective, Honduras has $1,801 per capita income. They have introduced both rotavirus and PCV vaccines. They currently pay $1.05 per child for these two vaccines. When they ‘graduate’ from GAVI’s program, their post-GAVI cost per child will be $25.50. For the whole birth cohort, this is a $5.1 million per year increase. For even poorer countries, there is vaccine rationing, and they are forced to target vaccines to high risk groups. The Kenyan Ministry of Health equated cost of vaccinations as “taking out multiple mortgages.”
Relative to other health care products, Mr. Berman asked why there hasn’t been more talk about vaccine prices. Ten years ago, there was a very fragile vaccine market out of which GAVI was begun. Now it is clear that the crises in pricing are more than the donors can handle. MSF’s objective in in engaging in vaccine pricing analyses is to stimulate debate over the numerous issues countries are facing, especially with respect to the 16 countries that will be exiting GAVI’s eligibility.
Mr. Berman urged the need to harness the power of greater price transparency and competition. The issues regarding vaccine prices in South Africa give a prime example of problems that arise when there is not pooled procurement in place. The PAHO model has worked quite well, even though industry has been resistant to give good prices to all of the PAHO countries.
Ongoing concerns for vaccine pricing and utility in the developing world include the WHO pre-qualification of the rotavirus vaccine despite concerns regarding practicability of use is a particular concern. Also, there are concerns regarding recommending PCV vaccination despite differences in targeted pathogen strains and the vaccine strains.
You might also be interested in:
- Bruce Lee (Uni Pittsburgh) – Pricing of new vaccines
- Sheldon Jacobson (Uni Illinois) – Vaccine Pricing: An analytics perspective
- Suerie Moon – The need for new approaches to global vaccine pricing