The Geneva-based public-private partnership, GAVI Alliance, has managed to bring down the price of the pentavalent vaccines by 50 cents and it now costs US$ 3 per dose effective from 2010. The fall in price has resulted in saving US$ 55 million and Gavi will be immunizing another 6.3 million children. The announcement has come at the GAVI Partners’ Forum, Hanoi, Vietnam.

A recent tender for pentavalent vaccine has shown a price drop with the weighted average price for 2010 falling below US$ 3 on the 2009 price.

“This is the GAVI effect at work: pooling growing demand from countries, attracting new manufacturers and increasing competition to drive down prices. Now, several of our activities will benefit from the saving, including the introduction of pneumococcal and rotavirus vaccines in GAVI eligible countries, beginning in 2010,” said Dr Julian Lob-Levyt, CEO, GAVI.

GAVI’s business model is based on the rising demand for immunization in developing countries. This would see more pharma companies enter the fray and existing vaccine manufacturers increase capacity, which will result in stiff competition that helps to drive prices down. Two ways to increase the number of children to be immunized are by raising additional funds and bring down vaccine prices. Considering the current economic environment and the difficult funding decisions that donors will have to make, the vaccine industry should make efforts to bring down prices further, added Dr Lob-Levyt.

In 2001, there was only one pentavalent vaccine manufacturer as against current four players. Of these, two are Indian companies which offered the products in 2008. Today, 50 per cent of the vaccines funded by GAVI are from developing country manufacturers.

The majority of vaccines financed through GAVI is purchased by its Alliance member, UNICEF. Pentavalent is projected to be GAVI’s single biggest expenditure till 2015, accounting for 40 per cent of vaccine spending, added Dr Lob-Levyt.

“In 2004, the vaccine cost was US$ 3.65 per dose. However, we expect the price to decline further to US$ 2.85 per dose by 2012 which is a total reduction of 22 per cent over an eight-year period,” said Ibrahim El-Ziq, chief, Immunization Center, UNICEF Supply Division. By 2010, UNICEF expects to pay US$ 2.96 per dose for pentavalent vaccine.

“This price drop is no accident, but the result of a strategy. Pharma industry comprehends and responds to market needs. The Alliance’s model is beginning to work, and we are optimistic that the trend will continue, as competition and demand increase over time,” said Saad Houry, deputy executive director, UNICEF.

Health experts opined that effect of lower prices for pentavalent vaccine could extend beyond the core beneficiaries of GAVI assistance, which constitute 72 poorest countries. GAVI Alliance has vaccinated over 250 million children averting 4 million premature deaths since 2000. Pentavalent vaccine is considered to be the gold standard for childhood immunization as it protects five diseases: Hib (Haemophilus influenzae type b), diphtheria, pertussis, tetanus and hepatitis B.