Pfizer fights back over price of vaccine for poor

An article from PharmaTimes
July 30, 2013
Pfizer fights back over price of vaccine for poor


July 30, 2013 -- Pfizer has responded to criticism over the prices it has agreed to supply its pneumococcal vaccine Prevenar 13 to the Global Alliance for Vaccines and Immunisation (GAVI) alliance for children in the world’s poorest countries.

The drugs giant has linked up with GAVI on a new supply agreement to provide additional doses of Prevenar 13. Pfizer has committed to supply the United Nations Children's Fund (UNICEF) with up to 260 million doses of Prevenar 13, at a reduced "tail price" until 2025. This is in addition to 480 million doses of the vaccine already committed through previous deals.

The tail price is the reduced cost per dose set by the manufacturer and paid by GAVI and the remaining amount is paid by the financing mechanism, called the Advance Market Commitment (AMC) designed to accelerate rollout of vaccines in the world’s poorest countries and is administered by GAVI.
Pfizer will offer Prevenar 13 through the AMC at $3.40 per dose for the remainder of this year, at which time the price will further decrease to $3.30. Since the firm's original AMC agreement in 2010, more than 20 countries have introduced Prevenar 13 into their immunisation programmes.

GlaxoSmithKline has also signed a new agreement to provide an additional 240 million doses of Synflorix to developing countries over the next ten years, at $3.40 per dose. The UK firm said it will help protect up to 80 million more children from pneumococcal diseases such as meningitis and pneumonia.

However the deals provoked a hostile response from Medecins Sans Frontieres. The charity claimed that the price reduction "of just $0.10 represents barely a 3% discount for developing countries on a vaccine which Pfizer and GSK currently receive the vast chunk of a $1.5 billion subsidy".

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