BIO Ventures for Global Health Commends the Launch of the First Advance Market Commitment
Washington, D.C. – February 9, 2007
BIO Ventures for Global Health (BVGH) commends today’s launch of the first Advance Market Commitment (AMC), a novel financing mechanism to encourage industry investment in much-needed vaccines for the developing world. Italy, the United Kingdom, Canada, Norway, Russia, and the Bill & Melinda Gates Foundation are making the commitment to this landmark AMC, which guarantees a $1.5 billion market for new vaccines to prevent deadly respiratory infections in children in developing countries. These funds, which subsidize the purchase of pneumococcal vaccines, create an incentive for manufacturers to develop products for countries that cannot pay for the vaccines.
"AMCs will change the landscape of neglected disease research and development by creating markets for vaccines in developing nations,” said Dr. Christopher D. Earl, President and CEO of BVGH. “Industry initiative is critical to filling the pipeline of new vaccines to treat neglected diseases and the strongest incentives for investment are real, addressable markets.”
In 2006, BVGH met with more than 150 industry executives to identify the features of an AMC most likely to stimulate industry R&D for new vaccines. BVGH distilled this feedback into a major report, released last May. Many of the report’s recommendations were incorporated into the design of today’s initial AMC pilot by experts at the World Bank and the Global Alliance for Vaccines and Immunizations.
BVGH hopes that today’s historic announcement will signal the first in a series of donor commitments to create markets for the world’s most devastating diseases including tuberculosis and malaria.
“Lack of market opportunities for products that address neglected diseases has made it difficult for some companies to advance innovative medicine and has kept others out of the field entirely,” Dr. Earl said. “To spur industry investment, developing world opportunities must be strong enough to compete with product opportunities in the developed world.”
Under AMCs, which are designed to enhance the value of otherwise insufficient developing world markets, donors commit to guaranteed, preferential prices for a certain number of vaccines sold to the poorest countries. In return, manufacturers agree to lower their prices substantially after an agreed-upon period to ensure long-term access by countries with patients most in need.
About BIO Ventures for Global Health
BIO Ventures for Global Health is a non-profit organization whose mission is to save lives by accelerating the development of novel biotechnology-based drugs, vaccines, and diagnostics to address the unmet medical needs of the developing world. The organization spurs biotech industry involvement in global health product development by increasing biotech and global health partnerships, designing and advocating for compelling market-based incentives, and synthesizing and disseminating critical information and quantitative analysis. For more information, please visit www.bvgh.org.
For additional information, contact:
Molly Polen, Director of Communications, BIO Ventures for Global Health 202-470-6232