MONDAY, SEPTEMBER 26, 2016

GAVI announces agreements to reduce pneumococcal vaccine prices

The GAVI Alliance announced new supply agreements with two vaccine manufacturers on Monday to reduce prices for pneumococcal vaccine for children in the world's poorest countries.

As part of new agreements between GAVI, The World Bank, UNICEF, Pfizer and GlaxoSmithKline, GAVI will be more able to sustain its programs in the long term.

"More than 10 million children have been reached with GAVI-supported pneumococcal vaccines in 29 countries since 2010," Seth Berkley, the CEO of the GAVI Alliance, said. "We expect to reach children in more than 50 countries with this lifesaving vaccine by 2015. We are working hard to make sure all our programs are sustainable in the long term and one way of doing this is securing the best price we can for vaccines."

Previous agreements with Pfizer and GSK offered pneumococcal vaccine at $3.50 per dose. Under the terms of the new agreement with Pfizer, the company will provide the vaccine at $3.40 per dose with a further reduction to $3.30 per dose from 2014 onwards. GSK will also lower its price to $3.40 per dose for its pneumococcal vaccine for a contract covering the period between 2014 and 2024.

The price reduction announcement is the third such announcement by GAVI in 2013. In April, a vaccine manufacturer agreed to provide pentavalent vaccine for $1.19 per dose. In May, GAVI secured a low price of $4.50 per dose for human papillomavirus vaccine.