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Post-AMC objectives

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Each firm will be required to set their post-AMC price per dose as part of their ... The post-AMC price can be lowered but not increased. ... – PowerPoint PPT presentation

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Title: Post-AMC objectives


1
Post-AMC objectives
  • Assurance to donors that investment in AMC will
    result in continued supply to meet, at a minimum,
    demand created during the AMC
  • Predictable prices and assured supply to enable
    countries to make informed national decisions to
    introduce the pneumococcal vaccine into the
    health program
  • Lower long-term prices to facilitate sustainable
    funding by national governments and partners once
    AMC funds are depleted
  • Defined and economically feasible obligations for
    firms
  • Mechanisms to address inflation

2
Post-AMC Price Agreement
  • Each firm will be required to set their post-AMC
    price per dose as part of their Guarantee and
    Supply Agreement,
  • Firms will not commit to a price 13 years in the
    future set by an external entity.
  • The post-AMC price can be lowered but not
    increased.
  • Force majeure mechanism established to address
    changed circumstances
  • To further build on market forces, the post-AMC
    price will partially determine the country
    co-payment set for each vaccine.
  • Thus the post-AMC price will influence demand
    during the AMC.
  • Each firms post-AMC price becomes a competitive
    factor influencing which products are demanded
    by countries

3
Post-AMC Supply Commitment
  • In the unusual situation where firms can or do
    not wish to fully meet demand, there will be a
    minimum volume obligation for those who received
    AMC funding. Following are possible options to
    determine volume commitments
  • Volume commitments starts at peak supply level as
    measured during the AMC and this is adjusted
    based on real demand (average of required amount
    and actual demand on rolling basis).
    Requirements are waived on temporary basis if
    force majeure.
  • A firm can exit market without question if
    national demand is adequately met by other firms
    in the market.
  • This post-AMC agreement sunsets after a certain
    number of years (e.g 10 years from the start of
    the post-AMC period).
  • Firms will be obligated to provide a set number
    of years notice (e.g. 4 -6) before it can close
    the facility.

4
Illustration of on-going volume commitment
During AMC
Post-AMC volume commitments
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