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Advance Market Commitment (AMC)

Advance Market Commitment (AMC)

An Advance Market Commitment (AMC) for vaccines is an innovative way to incentivize companies in creating and manufacturing vaccines primarily needed in low-income countries. AMC tackles the longstanding development problem—persistent market failures to develop and produce vaccines needed in poor countries due to perceptions of insufficient demand or market uncertainty. Donor countries commit money to subsidize the price of vaccines required by developing countries. The approach offers the necessary financial incentives by way of donor commitments for suppliers to develop the vaccines including research and training staffs. By forging long-term contracts with suppliers, the program ensures lasting supply of vaccines for countries that need them.

A pilot AMC for pneumococcal vaccines was designed and launched on June 12, 2009 to demonstrate the feasibility of the program in creating affordable vaccines to meet the growing demands and also offer donor countries a mechanism to assess the effectiveness of the program and expand it to include other diseases. The program is designed to meet the vaccination demands of developing countries at a highly subsidized cost. The current price for the vaccine in industrialized countries is in the region of $70 per dose but with the implementation of the program the long-term price for developing countries will be $3.50. Initial estimates indicate that the program will be effective in preventing seven million childhood deaths due to pneumococcal disease by 2030.

The governments of Italy, the United Kingdom, Canada, Russia and Norway and the Bill & Melinda Gates Foundation have committed $1.5 billion for the pilot program that is estimated to assist 60 of the poorest countries. The World Bank’s role in the AMC Pneumo Initiative is to provide fiduciary support as well as legal, accounting, systems, and reporting functions as well as balance sheet support. CFPMI is overseeing the services for the AMC across the Bank.

Pilot AMC Program launched to offer affordable pneumococcal vaccines for developing countries

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