Summary of UNICEF Study: A Commercial Perspective of Vaccine Study

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SENT BY:NAT'L VACCINE PROGRAM; 7-25-94; 17:21; 12024018141- 91619944
governments, benefit from this tiered pricing system.
Focussing only on the procurement of low price vaccines for
developing country immunization programmes has strained
relationships with manufacturers and put in questions their
willingness to provide other services. To ensure long term
security of vaccine supply, access to new, affordable vaccines,
and influence over manufacturers policies and actions, UNICEF
programme and procurement policy are being reviewed. Following
are the specific actions which are being evaluated:
Improve country forecasting: Although the annual, global
demand averages out to be fairly accurate, the timing and
vaccine demand for specific countries varies widely from
estimates. UNICEF has lost some credibility with the
manufacturers because of the growing inaccuracy of the
country vaccine forecasts. Countries must predict and
implement vaccine supply plans with greater discipline. New
mechanisms will be introduced to provide more credible
market estimates which manufacturers require to plan
production efficiently.
Target countries: UNICEF procurement currently absorbs 40 -60% of the manufacturers' total output of a given vaccine.
UNICEF is, in some cases, supplying low price vaccine to
countries which could afford vaccine at prices which cover
the full cost of production. This means that while UNICEF
may increase the number of doses demanded, it may decrease
the actual value (in revenue terms) of a given market. If
UNICEF, in concert with the. global community, were to target
vaccine procurement services to the countries most in need,
manufacturers might, in exchange, be more willing to help
acheive other goals such as access to new vaccines.
Maintain knowledge equilibrium: To ensure supply security,
low prices, and access to new vaccines UNICEF must remain as
knowledgeable about the technical and economic issues faced
in vaccine manufacturing as the manufacturers. More complex
procurement will require more intimate knowledge and
understanding of the economic and technical issues faced by
vaccine suppliers.
Re-evaluate procurement strategy: Alternative procurement
strategies based on closer partnership with the
manufacturers may enhance UNICEF's ability to.work with
manufacturers to achieve different goals. The implications
of these strategies must be carefully considered with
manufacturers.
Commit to offtake; To aesist manufacturers in deciding
on long term investments in capacity or equipment,

UNICEF may need to provide long term commitments thus

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