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Advanced Market Commitments

The Advanced Market Commitment (AMC) is an innovative financing model that subsidises pharmaceutical companies for the development and production of new vaccines.  The subsidy is meant to reduce the risk for pharmaceutical companies of investing in products for poor country markets. The subsidy is only paid once a vaccine meeting certain specifications is made available at a given price set by the donors.

A group of donors - Italy, United Kingdom, Canada, Russia, Norway and the Gates Foundation have agreed to support a pilot AMC project aimed at developing a vaccine for pneumococcal disease. Under the present design of the AMC, the donors are to contribute US$ 1.5 billion. The project has been designed and administered by the GAVI Alliance.

© Omar Odeh

While MSF welcomes any move to increase the supply of vaccines against pneumococcal diseases that kill almost 800 000 children under the age of five annually, we are concerned that the consultation process on the design of the AMC has not been fully completed  - in its present form, the AMC offers too much straight profit to the pharmaceutical industry.

The donors held their final meeting in Canada on May 20th to conclude the agreement on the AMC. A public announcement on the decision is expected shortly.

 

 

More information on AMCs

What is an AMC ?

How does an AMC work ?

What concerns are there with AMCs ?