Advanced Market Commitment: Daniel Bernan discussed today at the World Vaccine Congress Washington about Advanced Market Commintment strategies and how they were initially designed to stimulate R&D for products that would not have been developed.
Daniel Berman posed the question that while AMC was important, could we reach same objectives for less money using other strategies than AMC?
MSF vaccinates over 10 million per year primarily in outbreak zones. MSF attempts to procure pneumococcal vaccine have been complicated, frustrating and expensive.
Pneumococcal vaccine PCV-7 launched in 2000 in US for US market. In 2003-2005, clinical trials in new versions had two key African serotypes that showed good results. However, Wyeth abandoned the project despite successful results. Berman questions whether they ever considered joint venture arrangement with low-cost producer?
The WHO last week released a report stating that they were not convinced that experience to date had demonstrated effectiveness or replicability of AMCs and in fact was concerned that they could hinder competition.
What did AMCs do effectively? Berman said they scaled up production capacity, subsidized production of high return vaccine developers, negotiated lower prices for existing vaccines and tested the AMC concept for potential future applications. What it did not do was accelerate development of vaccines that meet developing country needs. It is also too early to say if it accelerates lower cost emerging country products.
Berman presented a model showing that rather than using AMCs, if more was done to support new manufacturers in developing world, substantial cost savings would arise.
Current strategies are not exploiting lower cost structures and profit expectations gained by using emerging country companies
Berman suggested that we should be utilizing the same business model as iPADS, creating arrangements that offer clear incentives for low cost producers. The public message is that it costs the same to produce vaccines everywhere and Berman does not believe this is true.
Check back here in a couple of days for the presentation. Excellent presentation Daniel!